World March 26, 2026

Stalled Negotiations as Washington, Tehran and Jerusalem Set Out Maximal Conditions for an End to Hostilities

Each side has framed conditions for a ceasefire that reflect broad strategic aims, while concerns grow over Gulf energy routes and further military escalation

By Derek Hwang
Stalled Negotiations as Washington, Tehran and Jerusalem Set Out Maximal Conditions for an End to Hostilities

On March 26, the United States, Israel and Iran outlined uncompromising positions for halting a conflict that has expanded across the Middle East and raised concerns about disruptions to Gulf energy flows. Washington relayed a confidential 15-point proposal to Tehran through Pakistan, but has not published the text. Iran says it is reviewing the proposal but has not offered a positive response, demanding a permanent end to the war, compensation and a claim to rights over the Strait of Hormuz. Israel remains wary of Iran accepting U.S. terms and insists any deal must preserve its option for pre-emptive action, while continuing operations to degrade Iranian military capabilities.

Key Points

  • Washington delivered a confidential 15-point plan to Tehran via Pakistan that reportedly seeks to remove Iran's highly enriched uranium, end its enrichment programme, curb its ballistic missiles and halt support for proxies - sectors impacted: defence, nuclear-materials oversight, international diplomacy.
  • Iran has not given a positive response to the U.S. proposal and demands a permanent end to the war, compensation and asserted rights over the Strait of Hormuz - sectors impacted: energy exports, shipping, regional trade.
  • Israel is sceptical Iran will accept U.S. terms, insists any deal must preserve its option for pre-emptive strikes, and continues operations against Iranian military targets - sectors impacted: defence, regional security, military procurement.

March 26 - The United States, Israel and Iran have each presented uncompromising conditions they say would be necessary to stop a war that has spread across the Middle East and threatened global commerce by imperiling Gulf energy exports. Since late February, U.S. and Israeli airstrikes have targeted Iranian assets and Iran has responded with strikes against Israel, U.S. bases and Gulf states.


What the Americans say

Washington has sent Iran a confidential 15-point plan via Pakistan. The text of that plan has not been made public and U.S. officials have declined to provide details. The administration has said some media descriptions of the plan are inaccurate, but has not elaborated on the substance.

Three Israeli cabinet sources who reviewed the contents of the U.S. proposal have described several measures it contains. According to those sources, the plan would seek:

  • the removal of Iran's stocks of highly enriched uranium;
  • an end to Iran's uranium enrichment programme;
  • restrictions on Iran's ballistic missile programme; and
  • the cessation of Iranian support for regional allies such as Lebanon's Hezbollah.

The White House warned that if Tehran does not accept the proposal, the United States will hit Iran "harder than they have ever been hit before." Separate reporting indicates Washington is expected to deploy thousands more soldiers to the Middle East, according to two people familiar with the matter.


Tehran's response

A senior Iranian official has told negotiators that Tehran's initial reaction to the U.S. proposal was not "positive," while also stating that the Iranian leadership continues to review the offer. Iran's foreign minister, Abbas Araqchi, said on Wednesday that Iran was not in direct negotiations with the United States but that messages were being exchanged via intermediaries.

Iran has articulated several core conditions it says must be met for any settlement. Officials have called for a permanent end to the war and for compensation to cover destruction. State media cited an Iranian official asserting that sovereignty over the Strait of Hormuz is Iran's "natural, legal right," a demand Tehran has communicated to intermediaries.

Sources familiar with Iran's position told intermediaries that any ceasefire deal must address Israel's war in Lebanon. Tehran has also indicated it can escalate by threatening alternate maritime routes used for oil exports - pointing in particular to the Red Sea and the Bab al-Mandab Strait as potential pressure points if the conflict continues without a ceasefire.

Iran additionally told intermediaries it had intelligence about a plan by the United States, with support from a regional country, to occupy an Iranian island. Iranian officials warned that such an occupation would prompt attacks on vital infrastructure in the unnamed regional country.


Israel's stance

Israeli defence officials have expressed scepticism that Iran will accept the U.S. package, and have also voiced concern that Washington might make concessions that fall short of Israel's security needs. One Israeli source said any agreement must preserve Israel's option to carry out pre-emptive strikes.

Israel's military spokesperson said the current mission remains focused on continuing to destroy Iran's military capabilities and stated that Israel still has "many more targets left."


Implications noted by the parties

All three actors frame their positions around core security objectives: the United States pushing a plan that targets Iran's nuclear and missile capabilities and regional influence; Iran demanding a permanent stop to hostilities, compensation and control over strategic maritime entrances; and Israel insisting on retaining freedom of action to neutralise perceived Iranian threats. The positions as expressed underline why a near-term diplomatic settlement faces steep obstacles.

Given the focus on Gulf sea lanes and alternative maritime passages, energy-exporting industries, shipping and defence sectors remain directly implicated by the standoff.

Risks

  • Further military escalation if Iran rejects the U.S. proposal or if perceived concessions are seen as insufficient - this could affect defence spending and regional military operations.
  • Disruption to Gulf energy exports and alternative shipping routes if Iran seeks to escalate by targeting the Red Sea or Bab al-Mandab Strait - this could impact oil markets and global shipping.
  • Occupation of an Iranian island, as warned by Tehran if it believes such a move is imminent, could trigger retaliatory strikes on vital infrastructure in a regional country - this raises risks to regional stability and critical infrastructure sectors.

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