US-Iran diplomacy is moving on two tracks at once — cautious formal messaging and pointed military warnings — as both sides size up whether a lasting deal is possible.

Iran said Sunday that the US had responded to its 14-point proposal, delivered via Pakistan, and that Tehran was reviewing the reply. A foreign ministry spokesperson added pointedly that "at this stage, we do not have nuclear negotiations" — signalling Tehran is not yet treating this as a full nuclear talks process. US Special Envoy Steve Witkoff confirmed to CNN that Washington was "in conversation" with Iran as both sides weigh whether to move toward formal negotiations to end the war.

President Trump followed with a Truth Social post calling the discussions "very positive" and saying they could "lead to something very positive for all" — his most upbeat public framing of Iran diplomacy so far. But Trump had earlier taken a harder line on the proposal itself, saying he "can't imagine" Iran's plan would be acceptable because Tehran had not yet paid "a big enough price" for its actions over the past 47 years.

What Iran's Plan Actually Proposes

According to Axios and Al Jazeera, citing sources briefed on the document, Iran's proposal sets a 30-day deadline to transform the ceasefire — brokered by Pakistan and in effect since April 8 — into a permanent end to the war. The plan is structured in three phases. The first would reopen the Strait of Hormuz gradually, lift the US naval blockade of Iranian ports, and have Tehran take responsibility for clearing sea mines. The second phase would allow Iran to resume uranium enrichment at 3.6 percent under what sources described as a "zero-storage principle," while the US and Israel would commit to no military strikes on Iran or its allies. Iran has explicitly rejected any dismantling of its nuclear facilities. The third phase envisions a broader regional security architecture involving Iran and its Arab neighbours. Sanctions relief, including the gradual release of frozen funds, is also part of the package.

Project Freedom and the Strait

Separately, Trump announced "Project Freedom" — a US-led effort to guide foreign vessels currently stuck in the Strait of Hormuz to safety. He said ships from countries uninvolved in the conflict had asked Washington for help, and that many were running low on food and supplies. Trump framed the operation as a humanitarian gesture but warned that any interference "will have to be dealt with forcefully." The operation was set to begin Monday morning, Middle East time.

The military backdrop remains tense. Iranian Revolutionary Guards said Trump must choose between "an impossible operation or a bad deal." Senior Iranian military adviser Mohsen Rezaei, responding to Trump's own description of a US helicopter seizure of an oil tanker as "like pirates," posted on X that Iran would "sink US ships" and warned of a "graveyard of your carriers." Iran's envoy to Pakistan said progress in talks depends entirely on US "sincerity" and called American behaviour "unpredictable and aggressive."

Negotiations have had little visible progress since the ceasefire: only one round of direct peace talks has been held, in Islamabad. The next signals to watch are whether Washington formally responds to Iran's 14-point plan, whether Project Freedom proceeds without incident in the Strait, and whether either side agrees to a second round of direct talks within Iran's proposed 30-day window.