US awaits response to peace plan as Iran keeps up attacks

Iran kept up missile and drone attacks on Israel and Arab Gulf states, even after the U.S. 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 U.S. has compiled a 15-point peace proposal, which Pakistan delivered, according to people familiar with the matter, highlighting the urgency within President Donald Trump’s administration to resolve a conflict it started alongside Israel almost a month ago.

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 U.S. 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 U.S. 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 U.S. 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 little clarity over whether Iran will immediately allow commercial ships safe passage through the Strait of Hormuz, as well as 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. The White House didn’t immediately respond to a request for comment late Tuesday night.

It is unclear if Israel, which triggered the war alongside the U.S. 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.

Israeli Prime Minister Benjamin Netanyahu has asked close confidant Ron Dermer to monitor the U.S.-Iranian negotiations and make sure the Jewish state’s interests are upheld. The appointment signals how seriously Netanyahu views the talks and how his government is wary of the U.S. opting for a deal that undermines Israel’s security.

Iran has previously demanded reparations and pledges from the U.S. and Israel that they won’t attack the Islamic Republic again as conditions for ending the current conflict.

Gulf states such as Saudi Arabia and the United Arab Emirates are considering joining the war against Tehran, according to several people with knowledge of the situation. They would only do so if the Islamic Republic attacks vital power and water infrastructure — a high threshold, the people said.

Turkey, meanwhile, is conducting intense diplomacy to try and prevent Gulf Arab countries from becoming involved, according to people familiar with the matter.

Steve Witkoff and Jared Kushner, two of Trump’s special envoys, as well as Secretary of State Marco Rubio, have been involved in the negotiations with Iran, according to the president. Pakistan has offered itself as a mediator.

Despite the talks, Trump has ordered thousands of troops to the Middle East as he weighs options for ending Iran’s stranglehold on the Strait of Hormuz, a crucial shipping corridor for oil, natural gas, metals and other commodities.

The president boasted Tuesday that the U.S. is in “a good bargaining position” after weeks of strikes that he says have taken out Iranian missiles, launchers and ships.

Yet, in the U.S., Asia and around the world, the conflict has led to surging fuel and fertilizer prices, with commercial tankers avoiding crossing the strait and Iranian attacks damaging energy infrastructure.

Iran’s growing control over Hormuz has been emphasized by it starting to charge transit fees for some commercial vessels. Payments of as much as $2 million per voyage are being sought on an ad hoc basis, effectively creating an informal toll on the waterway, according to people familiar with the matter.

Trump administration officials have stressed that higher costs sparked by the war will be temporary.

Beyond the economic concerns, protracted fighting is frustrating U.S. allies and inflaming geopolitical tensions. Before Trump ordered a five-day reprieve on threats to bomb Iran’s energy infrastructure, some nations were telling the U.S. that the war was becoming a disaster.

More than 4,300 people have been killed in the conflict, according to governments and non-government agencies. Around three-quarters of the fatalities have been in Iran, while more than 1,000 people have died in Lebanon, where Israel is fighting a parallel war against Iran-backed Hezbollah militants. Dozens have been killed in Israel and Arab Gulf states.

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—With assistance from Eltaf Najafizada.