World

Iran demands sanctions relief, war compensation as US peace talks remain deadlocked

Iran refuses to back down on demands for sanctions relief, access to frozen assets and compensation for wartime damage

Updated 4 months ago · Published on 19 May 2026 9:40AM

Iran demands sanctions relief, war compensation as US peace talks remain deadlocked
Tehran insists negotiations with Washington are continuing through Pakistani mediation despite describing the latest American proposals as excessive - May 19, 2026

IRAN has confirmed it has formally responded to the latest United States proposal aimed at ending the ongoing conflict in the Middle East, while insisting diplomatic engagement remains active despite deep divisions between both sides over key demands.

The exchange of proposals comes amid fragile ceasefire conditions following a conflict launched by the United States and Israel on February 28, with negotiations yet to produce a breakthrough agreement.

AFP cited Iranian Foreign Ministry spokesman Esmaeil Baqaei saying that Tehran had conveyed its concerns regarding Washington’s latest terms and stressed that talks were continuing indirectly through Pakistani mediators.

Baqaei said Iran remained firm on core demands, including the release of Iranian assets frozen abroad and the removal of long-standing economic sanctions imposed on the country.

“The matters raised are Iran’s demands, which have been defended vigorously by our negotiating team in every round of talks,” he said.

He also defended Tehran’s insistence that Washington compensate Iran for wartime losses, describing the conflict as unlawful and unjustified.

Meanwhile, Iranian President Masoud Pezeshkian (pic)  said dialogue with the United States should not be interpreted as weakness or surrender.

“Dialogue does not mean surrender. Iran engages in dialogue with dignity, strength and while safeguarding the rights of the nation. We will never retreat from defending the legitimate rights of our people and country.

“With logic and with all our strength, even to the point of sacrificing our lives, we will continue serving the people and protecting Iran’s interests and dignity,” he said.

Addressing the possibility of renewed military confrontation, Baqaei warned that Iran remained fully prepared for any escalation.

Iranian news agency Fars previously reported that Washington had submitted a five-point proposal that included demands for Iran to maintain only a single operational nuclear facility and transfer its highly enriched uranium stockpile to the United States.

According to the same report, Washington also refused to release even 25 per cent of Iran’s frozen overseas assets or provide compensation for destruction caused during the conflict.

Fars further reported that the United States had made clear it would only halt hostilities once Iran formally entered peace negotiations. - May 19, 2026

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