US Awaits Response to Peace Plan as Iran Keeps Up

US Awaits Response to Peace Plan as Iran Keeps Up Attacks

By Arsalan Shahla, Bloomberg

03/25/2026 05:20:25

- Iran kept up missile and drone attacks on Israel and Arab Gulf states, even after the US floated a plan to end a war that’s wreaked havoc across the Middle East and in global markets.

- The US has compiled a 15-point peace proposal, which Pakistan delivered, highlighting the urgency within President Trump’s administration to resolve a conflict it started alongside Israel almost a month ago.

- Iran has yet to comment on the proposal, but a series of officials have denied negotiations are taking place, with Iran’s military telling the US not to “call your defeat an agreement.”

(Bloomberg) -- Iran kept up missile and drone attacks on Israel and Arab Gulf states, even after the US floated a plan to end a war that’s wreaked havoc across the Middle East and in global markets.

Saudi Arabia intercepted a drone in the east of the country, while a strike targeting Kuwait set ablaze a fuel tank at its main airport. Iranian media said more missiles were fired at Israel.

The US has compiled a 15-point peace proposal, which Pakistan delivered, according to people familiar with the matter. Trump’s administration to resolve a conflict it started alongside Israel almost a month ago.

Smoke from a fire at Kuwait International Airport in Kuwait City, on March 25.

There’s been little sign of Iran backing down in the face of a relentless bombardment. Meanwhile, the economic toll from the war is mounting, with the effective closure of the Strait of Hormuz triggering a global energy supply shock.

That’s sparked fears of an inflation crisis and worldwide food shortages.

Iran has received Trump’s proposal, the Associated Press reported on Wednesday, citing two Pakistani officials. The plan covers a rollback of Iran’s nuclear program — including a resumption of monitoring by the International Atomic Energy Agency — limits on missiles and access for shipping through the Strait of Hormuz, the AP said. Iran would get relief from stringent economic sanctions.

Iran has yet to comment on the proposal, but a series of officials have denied negotiations are taking place. In an overnight statement, the country’s military told the US not to “call your defeat an agreement.”

“The level of your internal conflicts has reached the point where you are negotiating with yourselves,” the armed forces said in a statement carried by Iran’s state-run IRIB News.

Trump has publicly signaled any peace agreement would have to include a prohibition on Iran ever obtaining a nuclear weapon or enriching radioactive material for civilian purposes.

The US leader has said he hopes to reach an agreement by Friday. That may be difficult given the wide gaps that remain between the sides, even if talks get officially underway. It’s unclear who the US would negotiate with, given a lack of clarity about Iran’s power structure following the killing of Supreme Leader Ali Khamenei on the first day of the conflict. Several other leading government and military officials have also been killed.

There’s also no clarity over whether Iran will immediately allow commercial ships safe passage through the Strait of Hormuz, nor how Israel would respond to any deal.

Oil prices fell about 5.5% on Wednesday, with Brent trading at just under $99 a barrel by 10:15 a.m. in London, as traders clung to signs of the war being resolved. The benchmark has dropped from its close last week of $112 barrel because of Trump announcing the start of talks. The New York Times first reported on the existence of the 15-point document.

It is unclear if Israel, which triggered the war alongside the US with strikes on Iran on Feb. 28, has signed off on Trump’s overtures. Israeli officials have said they’ll continue striking Iran for now.