Iran has rejected a call to reopen the Strait of Hormuz in return for a 45-day ceasefire.
Pakistan presented Tehran and Washington with a peace proposal that would have seen an immediate pause in the conflict and a reopening of the key shipping lane.
While Iran said it was reviewing the framework of the broader agreement, an official insisted that the Strait would not be reopened.
The two-stage proposal came from Egyptian, Pakistani and Turkish mediators, who were hoping the 45-day window would provide enough time for talks to reach a permanent ceasefire.
Field Marshal Asim Munir, Pakistan’s army chief, was in contact “all night long” with JD Vance, the US vice-president, Steve Witkoff, the US special envoy to the Middle East and Abbas Araghchi, the Iranian foreign minister, sources told Reuters.
The proposal, called the “Islamabad Accord”, would include a regional framework to reopen the strait, as well as in-person talks in Islamabad.
It is understood to include Iranian commitments not to pursue nuclear weapons in exchange for sanctions relief and the release of frozen assets.
Iran’s foreign ministry said on Monday that Tehran had formulated its position and communicated it through intermediaries in response to the ceasefire proposal.
Esmaeil Baghaei, the ministry spokesperson said details of the response would be announced in due time, but added negotiations were “incompatible with ultimatums and threats to commit war crimes.”
On Sunday, Donald Trump, the US president, threatened to hit Iranian power plants and bridges and send the country to “hell” if Tehran did not reopen the Strait by Tuesday.
“Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one. Open the f—— strait, you crazy b——-, or you’ll be living in hell – just watch! Praise be to Allah,” he said on Truth Social.
Earlier on Monday, a senior Iranian official told Reuters that Iran wouldn’t reopen the Strait as part of a temporary ceasefire, nor would it accept deadlines or pressure to reach a deal. Washington was not ready for a permanent ceasefire, the official said.
The Strait of Hormuz, a conduit for one-fifth of the world’s oil, has been effectively blockaded by the Iranian military since US-Israeli strikes in February.
Mr Trump has repeatedly threatened to strike Iranian energy infrastructure in an attempt to force Iran’s leadership to reopen the waters, as energy prices soar.
He previously backed down on a threat to bomb Iran’s power plants, before asking the UK, Japan and South Korea, and others, to help reopen it.
Many of the US’s Gulf allies, including Kuwait and Saudi Arabia, depend on the passage to export oil around the world. On Monday, the United Arab Emirates (UAE) said any settlement must guarantee access through the strait.
It warned that any deal which failed to rein in Iran’s nuclear programme, missiles and drones would pave the way for a “more dangerous and volatile Middle East”.
