Iran war: In a significant development which could lead to resumption in hostilities between Iran and the United States, Washington has rejected Tehran’s latest updated proposal aimed at reviving efforts to end the war.

According to senior US officials, Iran’s proposal fall short of expectations and does not represent any meaningful progress towards a deal, even as President Donald Trump is still seeking a negotiated settlement but is increasingly frustrated by Tehran’s refusal to accept what Washington considers essential concessions, Axios reported.

Why US rejected Iran’s proposal?

As per the report, Iran’s latest counter-proposal was delivered on Sunday night through Pakistani mediators, but the revised text contains only limited changes compared to previous submissions.

A senior US official cited by Axios said the Iranian draft includes more language reaffirming Tehran’s commitment not to pursue nuclear weapons, but lacks detailed commitments on suspending uranium enrichment or transferring its stockpile of highly enriched uranium, a key demand relentlessly pursued by Trump.

The Trump administration believes Iran’s proposal does not address core concerns. and is “not a meaningful improvement”, remaining insufficient for a breakthrough agreement, the official told Axios.

Did Trump offer sanctions relief to Iran?

Meanwhile, Iran’s Tasnim news agency, citing a source close to the Iranian negotiating team, said that unlike previous proposals, the US has accepted in its new proposal a waiver on Iran’s oil sanctions during the negotiation period. The source explained that waiving sanctions means the temporary relinquishment of sanctions.

Iran insists that the removal of all sanctions against the country must be part of the US commitments. The United States, however, has proposed a waiver of OFAC (Office of Foreign Assets Control) sanctions until a final understanding is reached.

A senior US official rejected the idea that sanctions relief would come without conditions, stressing that any easing of restrictions would require reciprocal steps from Tehran.

Will US resume military assault on Iran?

According to the official, the current trajectory risks renewed conflict if negotiations continue to stall. The development comes with reports suggesting that Washington is weighing both diplomatic and military options as tensions over Iran’s nuclear programme continue to escalate.

On Tuesday, Trump is expected to convene his top national security team in the Situation Room to assess the deteriorating situation and discuss possible military options. As per two officials cited by Axios, the administration is weighing how far to continue negotiations and when to consider alternative measures.

A senior Trump admin official that Washington may be forced to continue the process “through bombs” if Iran does not budge from its position.

Earlier, on Sunday, Trump told Axios on the phone before receiving Iran’s latest proposal that “the clock is ticking” and warned that if Tehran failed to show flexibility, “they are going to get hit much harder.”