Iranian state media stated that Tehran’s peace plan included the withdrawal of U.S. forces from near Iran’s borders, the end of the naval blockade on Iranian ports, and a cessation of all hostilities, including Israel’s offensive in Lebanon. The proposal also called for an agreement to be reached within 30 days, according to BBC; Iran’s Foreign Ministry spokesman Esmaeil Baghaei said that “at this stage, we do not have nuclear negotiations” — a key demand by Washington.

U.S. Response and Trump’s Stance

President Donald Trump reportedly told Israel’s Kan News on Sunday that the Iranian proposal was unacceptable to him — On social media, Trump said he would probably reject the proposal because “they have not paid a big enough price,” according to CNBC. He also announced that the U.S. would guide ships safely out of the Strait of Hormuz under “Project Freedom,” adding that any interference would be dealt with “forcefully.”

Market Reactions and Diplomatic Efforts

Gold prices held firm at the start of the week as fresh U.S.-Iran headlines improved market sentiment, even after talks over the weekend failed to materialize. The metal was trading around $4,704, little changed on the day, according to TMGM. Meanwhile, the U.S. Dollar (USD) came under pressure following the Axios report, though Washington has yet to respond. The Strait of Hormuz remains blocked, keeping crude prices near $100 per barrel and feeding concerns about global stagflation, according to another TMGM report.

Indefinite Ceasefire and Policy Shifts

President Trump announced he received a request from Pakistan to hold off on attacks until the Iranian government presents a unified proposal, citing that the government is divided. He said they would extend the ceasefire until negotiations are concluded while maintaining the maritime blockade, according to KBS 뉴스. This is analyzed as an effective indefinite extension, chosen to avoid a catastrophe.

Iran, however, stated that this is not the case. The U.S. and Israel suspended their bombing campaign against Iran four weeks ago, and officials from both sides held one round of talks. Attempts to set up further meetings have so far failed. A senior Iranian official confirmed on Saturday that Tehran envisions ending the war and resolving the shipping standoff first, while leaving talks on Iran’s nuclear program for later, according to CNBC.

Trump initially said on Friday that he was not satisfied with the Iranian proposal, but on Saturday said he was still looking at it. “They told me about the concept of the deal,” he wrote on social media without providing details.

Though Trump initially canceled a planned visit to Islamabad by envoys Jared Kushner and Steve Witkoff, saying that the Iranians had “offered a lot, but not enough,” the U.S. and Iran remain engaged in diplomatic efforts to end the war. The focus will shift this week to major central bank policy meetings, including the Federal Reserve (Fed), the European Central Bank (ECB), the Bank of England (BoE), and the Bank of Japan (BoJ).