Tehran proposal clashes with U.S. red lines

U.S. President Donald Trump said that he had yet to review the exact wording of a new Iranian peace proposal but he was unlikely to accept it, because the Iranians had not yet "paid a big enough price".

Trump's remarks on social media concluded a day in which he publicly mused about the possibility of restarting airstrikes, the latest mixed signal as he seeks to end the war he launched more than two months ago.

On Sunday, Israel ordered thousands of Lebanese to leave villages in southern Lebanon, an escalation of a war between Israel and Iran's Hezbollah allies that has run in parallel to the Iran war and could further complicate wider peace efforts.

Iran has said talks with Washington cannot resume unless a ceasefire also holds in Lebanon, which Israel invaded in March to attack Hezbollah after the Iranian-backed Lebanese group fired across the border in support of Tehran.

Lebanon and Israel agreed a separate truce last month, but fighting has continued, though on a smaller scale. 

PEACE APPEARS NO CLOSER

The United States and Israel suspended their bombing campaign against Iran four weeks ago, but appear no closer to a deal to end a war that has caused the biggest disruption ever to global energy supplies, roiled global markets and raised worries about the possibility of a wider global economic downturn.

In his post on social media, Trump wrote: "I will soon be reviewing the plan that Iran has just sent to us, but can’t imagine that it would be acceptable in that they have not yet paid a big enough price for what they have done to Humanity, and the World, over the last 47 years."

On Saturday, a senior Iranian official had said Iran's proposal would first open shipping in the Strait of Hormuz and end a U.S. blockade of Iran, while leaving talks on Iran's nuclear programme for later.

Though Trump had already said on Friday that he was not satisfied with the Iranian proposal, he said on Saturday he had yet to hear all the details.

"They told me about the concept of the deal. They're going to give me the exact wording now," he said. Asked if he might restart strikes on Iran, Trump replied: "I don't want to say that. I mean, I can’t tell that to a reporter. If they misbehave, if they do something bad, right now we’ll see. But it’s a possibility that could happen." 

IRAN'S PROPOSAL APPEARS TO CONTRADICT WASHINGTON'S DEMANDS

Iran's proposal to delay talks on nuclear issues until later appears to contradict Washington's repeated demand that Iran give up its stockpile of more than 400 kg (900 pounds) of highly enriched uranium as a condition to end the war.

Washington says the uranium could be used to make a bomb. Iran says its nuclear programme is peaceful but it is willing to discuss curbs on it in return for the lifting of sanctions, as it accepted in a 2015 deal that Trump abandoned.

Reuters and other news organizations have reported over the past week that Tehran was proposing to reopen the strait before nuclear issues were resolved. The senior Iranian official confirmed that this new timeline had now been spelled out in a formal proposal conveyed to the United States through mediators.

While saying repeatedly he is in no hurry, Trump is under domestic pressure to break Iran's hold on the strait, which has choked off 20% of the world's oil and gas supplies and pushed up U.S. gasoline prices. Trump's Republican Party faces the risk of a voter backlash over higher prices when the country votes in midterm congressional elections in November.

Iranian media said Tehran's 14-point proposal included the withdrawal of U.S. forces from areas surrounding Iran, lifting the blockade, releasing Iran’s frozen assets, payment of compensation, lifting sanctions and ending the war on all fronts, including Lebanon, as well as a new control mechanism for the strait.

Iran has been blocking nearly all shipping from the Gulf apart from its own for more than two months. Last month, the U.S. imposed its own blockade of ships from Iranian ports.

Speaking on condition of anonymity to discuss confidential diplomacy, the senior Iranian official said Tehran believed its latest proposal to shelve nuclear talks for a later stage was a significant shift aimed at facilitating an agreement.

"Under this framework, negotiations over the more complicated nuclear issue have been moved to the final stage to create a more conducive atmosphere," the official said.