Live updates: Iran says renewed conflict possible after Trump rejects latest peace proposal

Iran conflict 2025: Tehran warns fighting looms after Trump rebuffs peace plan

Muhammad Asghar | GlobalBeat

Iranian officials said renewed conflict could erupt within days after President Donald Trump dismissed Tehran’s latest diplomatic proposal as “a non-starter.”

The rejection came during a 40-minute phone call between Trump and Israeli Prime Minister Benjamin Netanyahu on Tuesday evening, according to three senior Iranian officials who spoke on condition of anonymity.

Iran had offered to freeze uranium enrichment at 60% purity and allow limited inspections of previously off-limits military sites in exchange for partial sanctions relief. The proposal marked Tehran’s first public concession since tit-for-tat strikes between the two nations killed 19 people in April. Trump told reporters the terms “don’t go nearly far enough” and warned that “all options remain on the table” if Iran continues its nuclear program.

Foreign Minister Abbas Araghchi delivered Iran’s formal response Wednesday morning during an emergency session of the Supreme National Security Council. “The Americans have chosen confrontation over compromise,” Araghchi told state television. “Our armed forces are prepared to respond decisively to any aggression.”

The council authorized Revolutionary Guard commanders to prepare “proportionate military responses” should Israel or the United States launch strikes, according to a summary released by the president’s office. The statement specifically mentioned targeting U.S. bases in Qatar, Bahrain, and Iraq, plus Israel’s nuclear facility at Dimona.

Israeli Defense Minister Israel Katz confirmed the military had moved additional Iron Dome batteries to northern Israel and placed air force squadrons on heightened alert. “We don’t seek war, but we’re ready to defend ourselves against Iranian aggression,” Katz told Army Radio.

Oil markets reacted immediately. Brent crude surged 4.2% to $89.40 per barrel, its highest level since October. The spike erased earlier gains from a Saudi-Russian pledge to increase production, with analysts warning prices could hit $120 if fighting disrupts shipping through the Strait of Hormuz.

European diplomats scrambled to salvage negotiations. French President Emmanuel Macron dispatched his top Middle East adviser to Tehran for urgent talks, while German Chancellor Friedrich Merz called for an emergency EU foreign ministers meeting Thursday in Brussels. “Nobody wants to see this escalate into a full-blown regional war,” EU foreign policy chief Kaja Kallas told reporters in Stockholm.

The breakdown ends a fragile three-week ceasefire that began after Israel’s April 15 strike on Iran’s Natanz enrichment facility. That attack killed 7 Revolutionary Guard members and came hours after Iran launched 50 missiles at Israeli military positions in the Golan Heights, killing 12 soldiers and wounding 31.

Iranian hardliners had criticized the original proposal as too conciliatory. Parliament speaker Mohammad Bagher Qalibaf demanded complete sanctions removal plus $50 billion in frozen assets before any enrichment limits. “We cannot trade our sovereign rights for empty promises,” Qalibaf told lawmakers Tuesday.

Trump’s stance reflects growing pressure from congressional Republicans who view Iran’s regional influence as a top foreign policy challenge. Senator Tom Cotton, a longtime Iran hawk, praised the president’s decision. “Weakness invites aggression. Strength deters it,” Cotton posted on social media.

China urged restraint from all parties. Foreign Ministry spokesperson Lin Jian called for “dialogue and consultation to resolve differences” but stopped short of offering to mediate. Beijing imports 800,000 barrels of Iranian oil daily, making it Tehran’s largest customer despite U.S. sanctions.

Background

Tensions between Washington and Tehran have simmered since Trump withdrew from the 2015 Iran nuclear deal during his first term. The agreement had limited Iran’s nuclear activities in exchange for sanctions relief, but Trump argued it failed to address Tehran’s missile program and regional militias.

The situation deteriorated rapidly following an April 2025 explosion at Iran’s Fordow enrichment facility that Tehran blamed on Israeli saboteurs. Israel neither confirmed nor denied involvement, but the incident killed 11 people and damaged centrifuges key to Iran’s nuclear program. Supreme Leader Ayatollah Ali Khamenei vowed “harsh retaliation,” leading to the April missile exchanges that marked the first direct Iran-Israel military confrontation.

Earlier diplomatic efforts had shown promise. Oman hosted secret talks in March between Iranian and U.S. officials, while Russia offered to serve as intermediary. Those discussions produced a temporary reduction in Revolutionary Guard activities across the region, including scaled-back support for Houthi rebels in Yemen and Hezbollah forces in Lebanon.

What’s Next

Iran’s parliament will convene a special session Thursday to debate whether to accelerate uranium enrichment to weapons-grade levels above 90% purity. The International Atomic Energy Agency has warned Iran could produce enough fissile material for a nuclear weapon within 4 to 6 weeks if enrichment resumes at maximum capacity. Israeli officials have pledged to prevent Iran from obtaining nuclear weapons “by any means necessary,” setting up a potential showdown if diplomatic channels remain closed.

European capitals will watch Tehran’s next move closely, with several nations maintaining significant economic ties despite U.S. sanctions. Italy’s Eni and Spain’s Repsol both operate refineries designed for Iranian crude, while French automaker Renault maintains a dormant but technically active joint venture inside Iran. Any military escalation could force these companies to choose between compliance with potential expanded sanctions and maintaining access to Iranian markets that generated $18 billion in European trade during 2024. The calculus becomes more complex as Iran signals it might suspend cooperation with international nuclear inspectors entirely, removing the last external monitoring of its program.