Iran has rejected the proposal for a temporary ceasefire with the United States, Iranian state news agency IRNA reported on Monday.
According to IRNA, Iran is demanding a complete end to the fighting in the region, along with a protocol to ensure safe passage through the Strait of Hormuz.
Iran's response conveyed to mediators consists of 10 clauses, the report noted. "The gaps are very significant," a source familiar with the details told The Jerusalem Post.
US President Donald Trump has threatened to rain "hell" on Tehran if it did not make a deal by the end of Tuesday that would allow traffic to start moving again through the vital route for global energy supplies.
While answering reporter questions outside the White House on Monday, Trump said that the war could end "very quickly" if Iran went along with the deal, adding that the people the US is currently negotiating with were "reasonable and not as radicalized." He stressed that the Tuesday deadline he has set for Iran to make a deal is final, adding that Iran's proposal was significant but not good enough.
A framework to end hostilities has been put together by Pakistan and exchanged with Iran and the US overnight, a source aware of the proposals said, outlining a two-tier approach with an immediate ceasefire followed by a comprehensive agreement.
"All elements need to be agreed today," the source said, adding that the initial understanding would be structured as a memorandum of understanding finalized electronically through Pakistan, the sole communication channel in the talks.
Phase one would involve a 45-day ceasefire, during which a permanent end to the war would be negotiated. Phase one could be extended if more time was needed for talks, Axios reported, citing several US and Israeli sources.
According to the sources, mediators think that only a final deal will lead to fully reopening the Strait of Hormuz and to a solution to the problem of Iran’s highly enriched uranium.
Iran's foreign ministry said on Monday Tehran had formulated positions and demands based on its interests and communicated them through intermediaries, in response to ceasefire proposals.
Ministry spokesperson Esmaeil Baghaei said details of the response would be announced in due time, but added negotiations were "incompatible with ultimatums and threats to commit war crimes."
"Iran does not hesitate to clearly express what it considers its legitimate demands and doing so should not be interpreted as a sign of compromise, but rather as a reflection of its confidence in defending its positions," Baghaei told a press conference. He said earlier US demands, such as a 15-point plan, were rejected for being excessive.
Mediators work on partial measures from Iran, US
Mediators are currently working on partial measures Iran can take to build confidence regarding the reopening of the Strait of Hormuz and its uranium stockpile, sources told Axios.
According to two of the sources, these two issues are not ones Iran will fully give up on in exchange for a 45-day ceasefire.
Mediators are also working on measures the US could take to address some of Iran's demands.
Iranian mediators have made clear that they do not want a Gaza or Lebanon situation “where there is a ceasefire on paper but where the US and Israel can attack again whenever they want to,” Axios wrote.
Mediators have urged Iranian officials not to delay any further, stressing that the next 48 hours are the last opportunity for them to reach a deal.
Sources told Axios that the chances of reaching a deal are slim, but this is the only chance to avoid a dramatic escalation in the war.