What was billed as a potential breakthrough to end the three-month war has instead revealed the widening chasm between Washington and Tehran. After weeks of back-channel negotiations mediated by Pakistan, US President Donald Trump reportedly rejected the near-final draft of a Memorandum of Understanding (MOU) that would have paused the conflict for 60 days and reopened the Strait of Hormuz. Instead, according to reports from The New York Times and other outlets, the White House sent back a revised framework on Saturday with significantly “tougher” conditions. Details of the revised text have emerged slowly, but the core points of contention are now clear. Where the provisional agreement was framed as a measured de-escalation, a temporary ceasefire, the opening of the strait, and a deferred discussion on the nuclear file, the new US position demands nothing short of an upfront dismantling of Iran’s sovereign rights. Trump’s demands, as outlined in a social media post before the White House meeting, now include a permanent and verifiable renunciation of nuclear weapons, the immediate opening of the Strait for unrestricted navigation with a ban on any passage fees, and US-led excavation and destruction of Iran’s stockpile of highly enriched uranium.
As Iran’s chief negotiator, Parliament Speaker Mohammad Bagher Ghalibaf, stated in a video broadcast on state television: “We will not approve any agreement until we are certain that the rights of the Iranian people have been upheld.” The Islamic Republic has always maintained that its nuclear programme is peaceful and conducted under IAEA supervision.
Tucked within the contested articles of the draft is a financial demand that Iran refuses to treat as a bargaining chip. According to a detailed report by Iranian state television, which cited an “unofficial” draft of the memorandum, the United States had previously agreed to unfreeze $12 billion of Iran’s foreign-held assets within 60 days of a deal being signed, transferring the funds to accounts designated by Tehran without restrictions. The funds would provide immediate relief to an economy battered by sanctions and war. Yet, Trump has now hardened the US stance on this issue, preferring indirect compensation through third-party Gulf states rather than direct sanctions relief. Washington is reportedly insisting that this financial relief be tied to strict nuclear rollback measures, a position that directly contradicts the phased approach Tehran had agreed to.
Iranian negotiators have drawn a red line. Sources told Fars News Agency that the release of these funds is a “vital prerequisite” for Tehran to continue dialogue. By hardening the terms on asset unfreezing, Washington is attempting to force Iran to pay for its own recovery.
The US proposal also attempts to sever the link between the war in the Gulf and the parallel conflict in Lebanon, a linkage that Iran has insisted upon since the earliest days of the ceasefire. Tehran has been adamant that any comprehensive deal must include a full cessation of hostilities on all fronts, specifically a halt to Israel’s military operations against Hezbollah. While the draft US plan reportedly mentions a “calming” of the situation, it offers no concrete mechanism to restrain Israel. The reality on the ground is grim. Even as diplomats met in Washington, Israeli warplanes were intensifying their bombing campaigns across southern Lebanon, expanding their ground invasion, and carrying out strikes in Beirut’s southern suburbs for the first time in nearly three weeks. Beirut has accused Israel of pursuing a “scorched-earth policy.”
Furthermore, the issue of the Strait of Hormuz remains a flashpoint. While Trump has publicly declared that the strait must be “immediately open, no tolls, for unrestricted shipping traffic,” Iranian media has been quick to refute this, stating that “no such clause” exists in the actual text. Tehran’s parliament is actively reviewing legislation that would formally institutionalize Iran’s management over the strait, including the imposition of administrative fees for guidance and security services.
As the diplomats haggle over wording, the military situation on the ground is deteriorating rapidly. The past week has seen the most serious exchange of fire since the April ceasefire. US forces struck a Revolutionary Guards ground control station in Bandar Abbas after shooting down five Iranian drones. In retaliation, Iran fired ballistic missiles at the US-operated Ali Al Salem airbase in Kuwait. The IRGC also claimed responsibility for shooting down an American MQ-9 Reaper drone that it said was violating Iranian airspace. These are not isolated incidents; they are the symptoms of a ceasefire that has been stretched to its breaking point. The Pentagon has warned that it is “more than capable” of restarting the war, while Trump has stated he is “in no hurry” to sign a deal.