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Why did Iran reject the US ceasefire proposal? What Tehran is demanding now

Iran rejects US ceasefire proposal as “one-sided”, sets its own conditions including compensation and Hormuz control amid ongoing conflict.

By Surjosnata Chatterjee

Mar 27, 2026 00:51 IST

On Thursday, Iran rejected the United States’ proposal to bring the conflict to a conclusion, calling it “one-sided and unfair,” while accusing the United States of offering terms that favor its interests as well as those of Israel.

The proposal, which was reviewed by the country’s officials as well as a representative of the Supreme Leader, was rejected, according to a report by Reuters.

"In brief, the proposal suggests that Iran would relinquish its ability to defend itself in exchange for a vague plan to lift sanctions," an official told Reuters.

Also Read | ‘Before it is too late…’: What did Donald Trump warn Iran amid ongoing war?

Tehran lays down its own conditions

Even as it rejected the US proposal, Iran signalled that it remains open to negotiations under revised terms. Iranian officials have outlined a separate set of conditions for any potential ceasefire.

These include compensation for damages caused to Iran due to recent US and Israeli strikes, security guarantees against further attacks, and recognition of Iran's sovereignty over the Strait of Hormuz, which is a critical global energy route.

State-run Press TV reported that these demands emanate from Iran's determination to secure security and economic benefits before agreeing to a truce.

Diplomatic efforts continue behind the scenes

While publicly turning down the US proposal, behind-the-scenes efforts continue to ease tensions and promote dialogue. Sources indicate that regional players such as Turkey and Pakistan are intervening to ease tensions and promote dialogue.

“Diplomacy has not stopped, and if realism prevails in Washington, a path forward may still be found,” the Iranian official said, as quoted by Reuters.

Trump doubles down with warning

Meanwhile, US President Donald Trump took a confrontational approach and said that Iran was under pressure and seeking a deal. In a social media post on Truth Social, Trump said that the Iranian delegation was “begging” to make a deal despite saying that they were still studying the deal.

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“They better get serious soon before it is too late." He further addded that consequences will follow if they don’t. His remarks come amid widening differences between Washington and Tehran over the framework for ending the conflict.

This latest exchange between the two countries reflects the growing gap between them. The US has been seeking a structured deal based on the parameters of nuclear control and sanctions relief. However, Iran has rejected the terms of the deal.

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