Iran's peace proposal includes reparations for war damage; seeks US troop withdrawal and lifting of sanctions.
Kazem GharibabadiDonald TrumpInternational Atomic Energy Agency

Iran's peace proposal includes reparations for war damage; seeks US troop withdrawal and lifting of sanctions.

Iran's new peace proposal calls for reparations for war damages, a U.S. troop withdrawal from areas near Iran, and the lifting of sanctions. The proposal aims to end hostilities, while Tehran seeks the release of frozen funds and more flexibility regarding peaceful nuclear activities, according to state media.

Reuters Reuters19 May 2026 · 15:11 UTC

Iran's latest peace proposal focuses on a comprehensive deal with the United States, including reparations for war damages and a U.S. military withdrawal from regional hotspots. Officials highlighted the need to lift economic sanctions and release frozen funds totaling tens of billions of dollars, as reported by Deputy Foreign Minister Kazem Gharibabadi.1

This peace initiative also includes ensuring an end to the U.S. marine blockade and creating a framework for Iran's peaceful nuclear activities under the watch of the International Atomic Energy Agency.

Sources indicate some softening of U.S. demands, with a suggestion that Washington is open to releasing a portion of the frozen assets. However, the context remains tense, with previous proposals termed as 'garbage' by former President Donald Trump.

Overall, the proposal seems to reiterate Iran's conditions from prior offers, yet it strengthens the call for diplomatic engagement amid ongoing hostilities across various fronts, particularly in Lebanon.

Key Insight
“Iran's peace proposal includes reparations for war damage and the withdrawal of US troops. The proposal reportedly includes conditions about lifted sanctions and frozen funds.”

Background on Iran's peace proposal

The terms of the proposal seem little changed from previous offers that were rejected by U.S. President Donald Trump last week, who referred to them as 'garbage'. A senior Iranian official indicated that the U.S. may be softening some demands, suggesting it has agreed to release a quarter of Iran's frozen funds totaling tens of billions of dollars. Reports also indicate that Washington showed more flexibility in allowing Iran to continue some peaceful nuclear activity under the supervision of the International Atomic Energy Agency.

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1
ReutersReuters
“Tehran's latest peace proposal to the United States involves ending hostilities on all fronts including Lebanon, the exit of ​U.S. forces from areas close to Iran, and reparations for destruction caused by the , state media reported on Tuesday.”
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