The collapse of this mediation attempt removes one of the few visible diplomatic channels still operating between Washington and Tehran, reinforcing the view that a near term negotiated de-escalation is unlikely. Iran’s explicit warning that it would expand the conflict to Tel Aviv and push its Houthi allies to close Bab al-Mandeb if Trump strikes Tehran directly raises the stakes around an already fragile Red Sea shipping corridor, adding to the existing Hormuz disruption. For oil markets already pricing significant supply risk, confirmation that both sides see the conflict escalating rather than de-escalating argues for the current risk premium to persist, with headline risk skewed toward further chokepoint disruption rather than resolution.
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Earlier:
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Iran turned down Trump’s latest ceasefire bid and warned that hitting Tehran directly would trigger a wider regional war.
Summary:
- Iran rejected a ceasefire proposal from President Trump that was delivered to Tehran by Iraqi Prime Minister Ali al-Zaidi, according to Iranian and Iraqi officials
- The mediation attempt came as Trump was threatening to escalate the war and target Iran’s critical infrastructure
- Iranian officials said the offer was the only one on the table and that Tehran was not interested in a temporary deal that left control of the Strait of Hormuz unresolved
- Al-Zaidi met with Iran’s president, its top negotiator and its foreign minister, who said the visit reflected close Iraq-Iran ties but that the core problem was Washington’s approach rather than a lack of communication channels
- Two Iranian officials said the country’s armed forces are preparing for the war to expand if Trump strikes Tehran or critical infrastructure, including retaliatory strikes on Tel Aviv and asking Houthi allies to close Bab al-Mandeb
- The rejection follows weeks of escalation, with US forces striking Iranian military bases and infrastructure including railroads, airports, bridges and seaports, and Iran launching ballistic missile and drone strikes on US targets in the region
Iran has rejected a ceasefire proposal from President Trump that was carried to Tehran by Iraqi Prime Minister Ali al-Zaidi, according to Iranian and Iraqi officials cited by the New York Times, as the failed mediation effort came amid Trump threats to escalate the war and strike Iran’s critical infrastructure directly.
The officials, who spoke on condition of anonymity given the sensitivity of the discussions, said al-Zaidi’s trip to Tehran followed a recent visit he made to the White House to meet with Trump. The exact details of the ceasefire proposal were not immediately clear, but Iranian officials said it represented the only offer currently on the table and that Tehran had no interest in a temporary arrangement that left the question of control over the Strait of Hormuz unresolved.
Al-Zaidi travelled to Iran with a delegation of senior Iraqi officials and met with President Masoud Pezeshkian, Iran’s top negotiator Brig. Gen. Mohammad Bagher Ghalibaf, and Foreign Minister Abbas Araghchi, according to local media reports cited by the Times. Araghchi told Iranian state television that Iran and Iraq shared close economic, political and security ties given their border, and that the visit carried significance given current regional circumstances. He said al-Zaidi had relayed his impressions from the Washington trip, but argued that Tehran and Washington already had sufficient channels for passing messages. The core issue, he said, was what he characterised as an illogical, greedy and controlling American position, rather than any shortage of intermediaries.
The rejection comes after weeks of steady escalation between the two countries, with American forces bombing Iranian military bases as well as infrastructure including railroads, airports, bridges and seaports, while Iran has responded with ballistic missile and drone strikes on American military targets across the region.
According to two Iranian officials cited by the Times, the country’s armed forces are actively preparing for the possibility of a wider war should Trump follow through on threats to strike Tehran and critical infrastructure directly. In that scenario, the officials said, Iran intends to expand the conflict regionally, including launching strikes on Tel Aviv and calling on its Houthi allies to close Bab al-Mandeb, the strategic Red Sea waterway. The report noted that in Tehran’s Azadi Square, where government supporters hold nightly pro-war rallies, a military vehicle paraded Iranian-made ballistic missiles on Thursday, a visible display of the government’s posture as the standoff continues.
This article was written by Eamonn Sheridan at investinglive.com.