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Iran peace plan demands war compensation, recognition of sovereignty over Hormuz

A statue depicting Persian mythical figure Arash the Archer, who according to tradition defined the border area between Persia and the Turanians, is displayed near a billboard on the facade of a building depicting the Strait of Hormuz with a caption in Persian reading "Forever in Iran’s Hand", at Vanak Square in Tehran on May 6, 2026. (Photo: AFP)

Iran has submitted a comprehensive plan to end the US-Israeli war of aggression, insisting on full compensation for war damages and the lifting of all sanctions, according to an IRIB report.

The report said that the plan also demands the release of frozen Iranian assets and the recognition of Iran’s sovereignty over the Strait of Hormuz

The Iranian counterproposal, delivered through Pakistani mediators, was passed to Washington on Sunday.

Soon after, Trump posted on his Truth Social platform: “I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it, TOTALLY UNACCEPTABLE!”

An informed source told Tasnim News Agency that Iran’s response “emphasizes the fundamental rights of the Iranian nation” and rejects Washington’s earlier plan, which Tehran viewed as an attempt to force capitulation to Trump’s excessive demands.

“Nobody in Iran writes a plan to please Trump. The negotiating team writes only for the rights of the Iranian nation. If Trump is unhappy with it, that is actually better,” the source said. “Trump simply does not like reality; that is why he keeps losing to Iran.”

Pezeshkian: Dialogue is not surrender

Iranian President Masoud Pezeshkian reiterated on Sunday that any negotiation does not mean retreat.

“We will never bow down to the enemy, and if there is talk of dialogue or negotiation, it does not mean surrender or retreat,” he said on X.

Iran imposed restrictions on the Strait of Hormuz, a waterway for about a fifth of the world’s oil, early in the war.

Tehran has since established a mechanism to collect tolls from ships transiting the strait, asserting its sovereign rights as a coastal state.

US officials have dismissed any such control as “unacceptable,” but Iran insists the strait’s security is a regional matter.

The war began on February 28 when the United States and Israel launched an unprovoked war of aggression against Iran, assassinating the late leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei and striking nuclear sites, schools, hospitals and civilian infrastructure.

Iran’s armed forces have since carried out 100 waves of retaliatory strikes under Operation True Promise 4, and Tehran is demanding full compensation for the massive destruction caused by US-Israeli bombings.

Tehran has not yet announced whether a new round of talks will take place, but Iranian officials have made clear that any future negotiations must be based on respect for Iran’s rights, not on dictates or coercion.


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