Markets continue to monitor developments as Iranian President Masoud Pezeshkian has presented a detailed framework for resolving hostilities with the United States and Israel, anchored by demands for reparations and security safeguards. Contrastingly, U.S. President Donald Trump points to extensive military operations as a reason the conflict may wind down, yet no formal agreement on halting the fighting has emerged.
President Pezeshkian has made Iran’s position explicit, outlining three essential preconditions for any potential settlement: formal recognition of Iran’s legal rights, compensation from the United States for war-related damages, and enforceable guarantees against renewed attacks. Pezeshkian reiterated these demands during recent engagements with Russian and Pakistani leadership, with all three countries denouncing what they described as U.S. and Israeli responsibility for starting the war.
This diplomatic posture stands in marked contrast to the stance taken by the U.S. administration. President Trump, assessing the state of the conflict, indicated that U.S. military forces have significantly depleted their pool of potential targets in Iran, which might facilitate an end to the campaign in the near future. Trump described current operations as progressing ahead of earlier projections and producing greater destruction than anticipated.
Nevertheless, no definitive schedule for winding down the conflict has been set. Israeli Defense Minister Israel Katz has made it clear that Israeli forces intend to proceed until all strategic aims are accomplished, without setting a limit on the duration. President Trump added that any cessation of hostilities would involve consultation and mutual agreement with Israeli Prime Minister Benjamin Netanyahu, and that Washington would not withdraw unilaterally.
The standoff highlights a core divergence: While Iran insists on restitution and firm protections as prerequisites for peace, the U.S. maintains that overwhelming military pressure is essential for bringing hostilities to a close. Whether Iranian authorities would honor a unilateral ceasefire called by the U.S. alone remains uncertain, particularly in the absence of progress toward their stated demands.
