Iran releases 10-point response to ceasefire draft to US-Israel peace plan

Iran has now handed over its long-awaited 10-point reply to the US after Washington sent its own 15-point peace plan.

At the top of the list, Iran wants a guarantee that it will not be attacked again. It also wants a permanent end to the war instead of a temporary ceasefire, plus an end to Israeli strikes in Lebanon and a full lifting of US sanctions.

The proposal also goes beyond Iran itself. Tehran is asking for an end to regional fighting against Iranian allies, which makes clear that it is treating this as a wider regional issue, not just a straight US-Iran deal.

In return, Iran says it would reopen the Strait of Hormuz. But that reopening would come with terms. Tehran wants to charge a $2 million fee for each ship passing through the strait, and it wants to split that money with Oman.

Iran also says it would set the rules for safe passage through Hormuz. The money raised from those transit fees would go toward reconstruction, not reparations.

All of this is landing with President Donald Trump’s peace deadline now just 25 hours away. That puts fresh weight on the next round of talks, especially as both sides are still trying to define what a deal would even look like.

Markets closed higher during Monday’s regular session as traders kept watching for any sign of movement. The S&P 500 rose 0.44%, the Nasdaq Composite gained 0.54%, and the Dow Jones Industrial Average added 165.21 points, or 0.36%.

At a White House press conference, President Donald Trump ramped up his threats again on Monday and said Iran faces massive destruction if no deal is reached by Tuesday at 8 p.m. ET.

Trump reiterated that any agreement has to include an open Strait of Hormuz. When he started the war more than a month ago, he gave a rough timeline of about six weeks. Now that the war has reached that point, his own timeline looks less clear, and so does his plan for how the US is supposed to get out.

On Monday, Trump floated something new. He said the US might even help Iran rebuild if he goes ahead with heavier strikes, though he did not explain what that would actually look like or how far that support would go.

Asked whether the war was winding down or moving toward something even bigger, Trump said he could not tell yet, and added that this is a critical period and that everything now depends on what Iran does before the 8 p.m. ET Tuesday deadline.

Trump also said he could not discuss the ceasefire proposal that mediating countries delivered to both Washington and Tehran on Sunday. Even so, he said the US has an active and willing participant on the other side of the negotiations, which suggests talks are still alive even as threats keep rising.

The S&P 500 added 0.4%. The Nasdaq Composite rose 0.5%. The Dow Jones Industrial Average gained 136 points, or 0.3%.

The move showed that traders were still willing to buy risk, even with energy prices staying jumpy. Right now, the market is basically trying to price two things at once: the chance of a wider conflict, and the chance that it burns out faster than feared.

That split showed up in comments from National Economic Council Director Kevin Hassett.

In an interview with on Monday, Kevin said he still believes the Federal Reserve will be able to cut interest rates even if higher oil prices keep pushing near-term costs up.

His view is that the energy hit matters, but not forever. Kevin said once the oil supply shock passes, stronger productivity from technology and artificial intelligence should help keep inflation under control.

He argued that more capital spending and AI-driven efficiency gains should keep putting downward pressure on prices. In his view, that would give the Fed more room to step in and support the economy with easier policy.

Kevin also made it clear he expects rates to come down once Kevin Warsh takes over at the central bank.

Pakistan has put sent a two-step US-Iran ceasefire plan to Trump and Iran overnight on Sunday, calling it the Islamabad Accord.

The draft calls for an instant ceasefire and a reopening of the Strait of Hormuz, followed by 15 to 20 days of direct talks on a final deal, with Islamabad acting as the middleman.

Under the draft, Iran would commit to not building nuclear weapons, while getting sanctions relief and access to frozen assets, according to Reuters.

Pakistan army chief Asim Munir was in contact through the night with JD Vance, Steve Witkoff, and Abbas Araghchi as the proposal moved between capitals.

Even so, there is still no official agreement, as a senior Iranian official allegedly told Reuters that Tehran will not accept deadlines or pressure, will not reopen Hormuz for a temporary ceasefire, and does not believe Washington is ready for a permanent deal.

The draft reached Tehran the same morning Israel killed the IRGC intelligence chief, with less than 38 hours left before Donald Trump’s 8 PM ET deadline. “Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the Fuckin’ Strait, you crazy bastards, or you’ll be living in Hell – JUST WATCH! Praise be to Allah,” Trump said.

On Fox News on Sunday, Trump had also said there was a “good chance” a deal could be reached by Monday.

Meanwhile, US-Israeli strikes hit residential buildings in Baharestan, killing 13 people, and Iran answered with new ballistic missiles launched at Tel Aviv.

Bitcoin climbed back above $70,000 on Monday for the first time since March 25, after reports that Iran was looking for a ceasefire, even as Trump stepped up threats to hit civilian infrastructure. Bitcoin rose more than 3.5% and briefly moved above $70,200 before easing back to just under $70,000 by press time.

Ether gained as much as 5.1%, while about $273 million in bearish crypto bets were wiped out over the last 24 hours, according to Coinglass.

As for gold, it has erased earlier losses and traded near $4,700 an ounce, with spot gold up 0.4% at $4,641 by press time. S&P 500 futures gained a weak 0.1%, Nasdaq-100 futures added 0.3%, and Dow futures fell 64 points, or 0.1%.

Last week, the S&P 500 rose 3.4%, its best weekly gain since November, while the VIX jumped from below 20 before the war to around 24.