Issue of Compensation-Strait of Hormuz in Iran's Rejected Proposal by Trump
Iran has submitted a counter-proposal in response to the US peace plan. In its proposal, Iran demands full compensation for war damages from the US and emphasises the recognition of Tehran’s sovereignty over the Strait of Hormuz.
Iran’s latest proposal, as reported by Press TV and Anadolu Agency on Monday (11/5/2026), also demands the lifting of all sanctions imposed on Tehran and the release of Iran’s frozen assets abroad.
Tehran’s counter-proposal was submitted through mediator Pakistan and forwarded to the US on Sunday (10/5) local time.
The proposal, according to Press TV, emphasises the “fundamental rights of the Iranian nation”.
Iran submitted the proposal after rejecting the US peace plan, on the grounds that it required compliance with “excessive demands” put forward by President Donald Trump.
“No one in Iran writes a plan to please Trump. The negotiation team only writes for the rights of the Iranian nation. If Trump is not happy with that, it’s actually better,” said a source familiar with the contents of Iran’s proposal when speaking to Tasnim News Agency.
“Trump doesn’t like reality at all; that’s why he keeps losing to Iran,” the source added.
Trump, on Sunday (10/5), stated that he had reviewed Iran’s latest response and expressed rejection of the counter-proposal submitted by Tehran. Trump described Iran’s latest proposal as “completely unacceptable”.
“I just read the response from what is called the ‘Representative’ of Iran. I don’t like it, completely unacceptable!” Trump said via his Truth Social account, as reported by AFP.
Tensions in the Middle East have escalated since the US and Israel launched attacks on Iran on 28 February. Tehran retaliated with waves of missile and drone strikes on targets in Israel and Gulf states hosting US military assets.
Iran has also effectively closed the vital waterway of the Strait of Hormuz, the main route for oil and gas shipments, since the conflict began. The US responded by imposing a blockade on Tehran’s ports in an effort to pressure Iran to reopen the Strait of Hormuz.
A ceasefire has been in place since early April through mediation by Pakistan, which was later extended indefinitely by Trump. Peace talks held in Islamabad in mid-April failed to produce a lasting agreement.