US President Donald Trump said that he had reviewed the Iranian's latest peace proposal and that it was "not acceptable," in an interview with Kan News on Sunday.
This comes after Al-Jazeera reported the details of Iran's 14-point plan earlier that day.
The plan contains three main stages with a 30-day phase aimed at transforming a ceasefire into a complete end to the war. It was presented as a rebuttal to the US's nine-point peace plan.
The Iranian draft reportedly calls for the US to lift sanctions on Iran, end its blockade on Iranian ports, withdraw US forces from the region, and cease all hostilities, including Israel’s war in Lebanon, Al-Jazeera reported.
The US has reportedly responded to the proposal through Pakistani mediators, and US Special Envoy Steve Witkoff confirmed that the US and Iran were "in conversation."
Three phases outlined
The report stated that in the first phase, the US, Iran, and Israel would sign a nonaggression pact. After that, the Strait of Hormuz would gradually reopen, and the US would lift its blockade, with Iran taking charge of clearing the sea mines.
The clause in which Iran demands compensation has reportedly been revised, but the demand for the withdrawal of US forces from the maritime area around the region remained.
In the second phase, Iran would agree to a 15-year freeze on uranium enrichment, after which it would resume enriching uranium to 3.6%.
Iran rejected the US's demand to dismantle nuclear infrastructure or facilities.
During this phase, Iran requested that all sanctions be lifted and that funds be unfrozen in exchange for the nuclear agreement.
The proposal suggests transferring the existing enriched uranium to other conuntries and diluting it to civilian enrichment levels.
The third phase would see Iran entering into a "strategic dialogue" with neighboring Arab states in order to build "a security system that includes the entire Middle East," Al-Jazeera reported.
Iran also called for China and Russia to play roles in enforcing any agreement, Saudi Arabian news outlet Al Hadath reported.
Iranian foreign ministry denies nuclear clause
Following reports on the proposal's details, Iranian Foreign Ministry spokesperson Esmaeil Baghaei said on state television that Iran's proposal did not include any clause related to the nuclear issue.
Baghaei also said that the proposal did not include Iran's minesweeping of the Strait of Hormuz.
He added that the US had sent a response via Pakistan, and that it was under review in Tehran.
Amichai Stein and Corinne Baum contributed to this report.