Iran-US war latest: Tehran refuses to back down on Trump’s demand to end nuclear programme in latest peace proposal

Both sides remain far apart on key issues after the US called off planned strikes following a request from Gulf allies

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Iran has rejected Donald Trump’s demand that it end its nuclear programme in its latest peace proposal, in a signal that both sides remain far apart.

Tehran’s deputy ‌foreign minister Kazem Gharibabadi said that Iran’s revised proposal emphasised the country’s “right to enrich and enjoy peaceful nuclear rights” and called for an end to the US blockade.

Trump has repeatedly called for Iran to end its enrichment of uranium, claiming that it is seeking to build a nuclear weapon. Tehran insists that its nuclear programme is for civil purposes.

Both Iran and the US have exchanged various peace proposals since a ceasefire agreed last month, but are yet to reach an agreement on key issues.

Last week, Trump said that he threw out Iran’s last proposal “after reading the first sentence” due to its insistence that it continue the nuclear programme.

On Monday, the US president said he had called off planned strikes on Iran following a request from Washington’s allies of the Gulf.

• Iran shrugs as Trump continuously flip-flops between threats and extending peace talk deadlines
• ‘Are you people crazy?’: Trump blasts Iran for sending peace proposal with ‘no relationship to the deal we made’
• Trump’s ‘clock is ticking’ Iran warning sends oil prices soaring and global markets tumbling

Key Points

• Trump says he has put off an attack for a 'little while' as Gulf allies say peace deal is close
• Oil prices fall as Trump holds off Iran attack
• Iran warns it is ready to 'pull the trigger' should Trump attack again
• Iran launches new body to manage Strait of Hormuz

Explosions heard in Iran's Qeshm island

Explosions were heard in Iran's Qeshm island on Tuesday, the semi-official Iranian Mehr news agency said, adding the cause was unknown and no official entity has commented yet.

Inside Qeshm: How Iran’s fortress island holds the key to the Strait of Hormuz

Recap: Trump says he decided to postpone a "major attack" on Iran in coming days

European shares rise on Trump's Iran comments

European shares ticked higher on Tuesday after investors welcomed news that the US had paused a planned attack against Iran following Tehran's latest peace proposal, with chances of a deal seeming close.

Donald Trump said there was now a “very good chance” of reaching a deal limiting Iran's nuclear program.

Oil prices fell as much as 2% even as they remained over $100 a barrel, while bonds steadied after a steep selloff in the past few sessions.

The pan-European STOXX 600 rose 0.2% to 611.22 points, as of 7am, but stayed below prewar levels.

European equities have lagged behind global peers, with the region's dependence on oil imports weighing on markets, while US and global markets have rebounded on artificial intelligence-led optimism.

Energy price cap to rise 13% in July as Iran war bites

Britain's domestic energy price cap is forecast to rise by around 13% ​in July from current levels, analysts at Cornwall Insight said ‌on Tuesday.

Energy bills are forecast to rise by £209 pounds to £1,850 a year for a typical dual-fuel household from July.

The new cap would represent an increase of 13% on the current £1,641 annual bill.

The main driver for the increase is higher wholesale prices, which climbed in February and March amid the Iran war, which damaged Gulf energy infrastructure and triggered the closure of the Strait of Hormuz, through which about 20% of the world's oil and liquefied natural gas usually passes.

Although a temporary ceasefire has brought some calm to markets, wholesale prices have remained elevated.

In pictures: Smoke rises over Lebanese village following Israeli airstrikes

Trump addresses decision to suspend attacks on Iran

Speaking on Monday, Trump said he decided not to attack Iran following pleas from other countries.

He told reporters: “We were getting ready to do a very major attack tomorrow.

“I've put it off for a little while, hopefully, maybe forever, but possibly for a little while, because we've had, very big discussions with Iran and we'll see what they amount to.”

He said Saudi Arabia, Qatar, the UAE and others had asked “if we could put it off for two or three days” in the hopes of making a deal.

He said he would be satisfied if he can guarantee Iran will not get a nuclear weapon.

Foreign secretary meets with UAE counterpart in London

Foreign secretary Yvette Cooper welcomed her UAE counterpart, Abdullah bin Zayed Al Nahyan, to London on Monday.

She said the UK and the UAE were forging stronger partnerships, including on “growth and defence” in a post on social media.

“Speaking yesterday we underlined our support of our Gulf partners as we work towards regional stability and a diplomatic resolution which reopens the Strait of Hormuz,” she said.

Recap: Trump 'calls off strikes on Iran at request of Gulf allies'

Donald Trump has said he will hold off on a planned attack against Iran at the request of Gulf allies, who believe a deal to end the war will be reached with “serious negotiations” being held.

The US president claimed renewed military strikes had been due to take place on Tuesday.

He said he had been told the agreement would be “very acceptable” to the US and would mean “no nuclear weapons for Iran”.

But he warned that he had instructed US forces to prepare for “a full, large-scale assault of Iran, on a moment’s notice” in case a deal was not struck.

Trump calls off strikes on Iran at request of Gulf allies, amid ‘serious’ talks

Watch: Trump says he decided to postpone a 'major attack' on Iran in coming days

Iran says latest peace proposal includes demand to continue nuclear programme

Iran has rejected Donald Trump’s demand that it end its nuclear programme in its latest peace proposal, in a signal that both sides remain far apart.

Tehran’s deputy ‌foreign minister Kazem Gharibabadi said that Iran’s revised proposal emphasised the country’s “right to enrich and enjoy peaceful nuclear rights” and called for an end to the US blockade.

Both Iran and the US have exchanged various peace proposals since a ceasefire agreed last month, but are yet to reach an agreement on key issues.

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