The U.S. insists that peace talks are "still ongoing," while Iran publicly rejects Trump's diplomatic initiative

Despite Tehran's public rejection of the U.S. diplomatic efforts and the proposal of new conditions to end the conflict that has severely impacted the Middle East and global markets, the White House maintains that peace negotiations with Iran are still in progress.

White House Press Secretary Karoline Leavitt told reporters on Wednesday, "Over the past three days, the United States has been engaged in productive dialogue. You are beginning to see the Iranian regime seeking a way out."

Leavitt added, "If Iran does not accept the reality of the current situation, President Trump will ensure they face even heavier blows than before. President Trump is not bluffing; he is ready to unleash hellfire."

Her comments contradict earlier statements from Iran via official media, which openly rejected Trump's push for negotiations. According to Iran's Press TV, Tehran is also seeking guarantees, including that the U.S. and Israel will not resume attacks, compensation for war damages, and recognition of its jurisdiction over the Strait of Hormuz.

Trump set a five-day deadline on Monday for Iran to negotiate an end to the war. The deadline has now passed the halfway point, and questions remain about the status of negotiations and the likelihood of reaching an agreement.

Sources familiar with the matter say the U.S. has drafted a 15-point peace proposal, which was handed over to Iran through Pakistan. This underscores the urgency of the Trump administration to resolve the conflict, which it initiated jointly with Israel nearly a month ago. Leavitt stated on Wednesday that the American proposal mentioned in reports is "partially accurate," but she cautioned against speculating about the plan based on anonymous sources.

According to CNN, Vice President Vance may travel to Pakistan this weekend to participate in Iran-related negotiations. When asked to comment on this report, Leavitt said, "The situation remains dynamic. Until officially announced, speculation about the meeting should not be considered final."

As the war approaches four weeks, both sides continue attacks amid new efforts to pressure each other into seeking solutions. Iran's Press TV reports that the Bushehr nuclear power plant has been attacked.

Leavitt said on Wednesday, "We are very close to achieving the core objective of this operation, and the military mission is still ongoing."

However, recent developments have dashed hopes for a quick resolution. The Trump administration has shown a renewed sense of urgency to end the war, with both sides vying for control of the strategically vital Strait of Hormuz, which is currently largely closed.

As traders begin to price in the possibility of ending the Iran conflict through diplomacy, Brent crude oil prices fell below $103 per barrel. Although market confidence in a de-escalation remains weak, investors see this correction as a rare exit opportunity, having heavily increased long positions since the beginning of the month.

Washington has deployed additional troops to the region, some of whom are expected to arrive before the weekend. The White House insists that Trump reserves all options, including further military action.

Sources say the U.S. plans to require Iran to dismantle its main nuclear facilities and limit its missile stockpiles to self-defense purposes. In return, Iran would receive certain concessions, including sanctions relief.

Iran has effectively closed the Strait of Hormuz, which carries about one-fifth of the world's oil and liquefied natural gas shipments, triggering a global supply shock. This has raised concerns over inflation crises and worldwide food shortages.

When asked whether the new timetable indicates Trump’s desire to end the war at that point, Leavitt said the government "has always estimated this conflict would last about four to six weeks."

Iran continued missile and drone attacks on Wednesday, showing little sign of retreat despite ongoing bombings by Israel and the U.S. Iran media reports that Iran launched more missiles at Israel, while Saudi Arabia intercepted a drone in its eastern region. An attack on Kuwait ignited a fuel tank at its main airport.

Trump has publicly stated that any peace agreement must include a ban on Iran possessing nuclear weapons or enriching radioactive materials for civilian purposes. He insists Iran wants to "reach an agreement."

The U.S. leader expressed hope to reach an agreement before the end of this week. Given the significant differences still existing between the sides, even if negotiations formally begin, it could be very difficult.

It is also unclear who the U.S. is negotiating with, as several senior Iranian officials and military officers have been killed. On Monday, Axios confirmed that Iranian Parliament Speaker Mohammad-Bagher Ghalibaf is likely the main negotiator, though he denies engaging in negotiations.

Ghalibaf posted on social media Wednesday, "We are closely monitoring all U.S. actions in the region, especially troop deployments. Do not test our resolve to defend our territory."

It remains uncertain whether Iran will immediately allow commercial ships to pass safely through the Strait of Hormuz, or how Israel will respond to any agreement reached. Israeli officials say they will continue to target Iran.

Israeli Prime Minister Netanyahu has tasked his close associate Ron Dermer with overseeing U.S.-Iran negotiations and ensuring Israel's interests are protected. This appointment reflects Netanyahu’s emphasis on the importance of the negotiations and the government’s vigilance over any agreement that could threaten Israeli security.

Several sources say that Gulf countries like Saudi Arabia and the UAE are considering joining the war against Tehran. They reportedly would only do so if Iran attacks critical power and water infrastructure—a very high threshold.

Meanwhile, sources indicate Turkey is engaged in intensive diplomatic efforts to prevent Gulf Arab states from becoming involved in the conflict.

Trump has said that his two special envoys, Wittekov and Kushner, along with Secretary of State Rubeo and Vice President Vance, are involved in negotiations with Iran. Trump claimed on Tuesday that after weeks of strikes, the U.S. is in a "favorable negotiating position," asserting that these strikes have destroyed Iran’s missiles, launchers, and ships.

Globally, the conflict has led to soaring fuel and fertilizer prices, with commercial oil tankers avoiding crossing the strait, and Iran’s attacks damaging energy infrastructure.

Iran has intensified control over the Strait of Hormuz, reportedly beginning to charge transit fees to some commercial ships. Sources say Iran is temporarily collecting up to $2 million per vessel, effectively establishing an informal toll on this waterway.

According to governments and NGOs, the conflict has caused over 4,500 deaths. About three-quarters of the casualties occurred in Iran, with over 1,000 deaths in Lebanon. Dozens have also been killed in Israel and Gulf Arab countries.