Iran has rejected a 45-day temporary ceasefire offer and instead presented a 10-point proposal, including a toll of $2 million per ship traversing the Strait of Hormuz. The plan, conveyed through Pakistan, was dismissed by U.S. officials as an "outrageous demand." The final deadline set by President Trump for negotiations expires at 8 p.m. Eastern Time on April 7 (8 a.m. Beijing time on April 8), marking the third extension.
According to The New York Times citing two senior Iranian officials, the proposal's core demands include reopening the Strait of Hormuz and dropping compensation claims, provided the U.S. and Israel halt strikes against Tehran and its proxies, lift all sanctions, and guarantee no future military action. Iran also demands Israel stop attacks on Hezbollah in Lebanon. The full text has not been released by Iranian state media.
$2 Million Per Ship Toll: Iran Replaces Claims with Fees
The most contentious clause introduces a toll mechanism for the Strait of Hormuz: every passing vessel would pay $2 million, with revenue shared with Oman to rebuild infrastructure damaged by U.S.-led strikes. This replaces direct war reparations. The strait handles roughly 20% of global seaborne oil trade. Iran has effectively paralyzed traffic there and recently shot down a U.S. F-15E fighter jet, believing it holds leverage in negotiations.
Axios quoted a U.S. official calling the proposal "a huge ask." Israeli Prime Minister Benjamin Netanyahu warned Trump against accepting the terms.
Trump: "Important Step, But Not Good Enough"
Trump commented at a press conference on April 6: "It's a major proposal, an important step, but not good enough." He reiterated that failure to reach a deal would trigger massive airstrikes, saying Iran would need "100 years to rebuild." Negotiations are led by special envoy Steve Witkoff and Jared Kushner, with mediation from Pakistan, Egypt, and Turkey. While a 45-day temporary truce had been discussed, Iran explicitly refused to reopen the strait for a short-term halt.
With less than 24 hours remaining before the deadline, global markets remain on edge as the final outcome hangs in the balance.