US-Iran deadlock deepens as both sides refuse to back down

The United States and Iran remain locked in what analysts describe as a high-stakes pressure campaign, with negotiations stalled by demands that both sides appear unwilling to compromise on.

Iranian officials have described Tehran's recent diplomatic responses as "realistic and positive", according to an anonymous Iranian official speaking to Al Jazeera, but US President Donald Trump has rejected the proposals, arguing they conflict with Washington's core objectives.

Iran's state broadcaster IRIB said the US proposal "meant Iran's surrender to Trump's greed" and argued Tehran's response "emphasises the fundamental rights of the Iranian nation".

The deadlock reflects deep divisions over sanctions relief, regional security and Iran's nuclear programme, says Al Jazeera.

Tehran doesn't draft proposals to "satisfy" Trump, Iran's Tasnim news agency quoted an informed source as saying about Iran's response to Washington's peace proposal.

"If Trump is unhappy with it, that's usually a good sign. Trump simply doesn't like reality; that's why he keeps losing to Iran," the source said.

Tehran is demanding the complete lifting of US sanctions through what it describes as a guaranteed mechanism, along with the release of seized assets and an end to the naval blockade. Iran has also asserted sovereignty over the Strait of Hormuz, called for war reparations from the United States, and insisted on maintaining an independent foreign policy and nuclear ambitions.

Washington, meanwhile, says its pressure campaign is aimed at preventing Iran from becoming a nuclear power, curbing its regional influence and ending support for groups including Hamas and Hezbollah.

The United States also seeks to limit Iran's ability to conduct offensive operations against neighbouring countries, particularly Israel.

"These are not peace talks, they are pressure talks," said Mark Pfeifle.

Pfeifle described the standoff as "more of a contest to see which side can sustain pressure longer without losing control".

The United States has intensified sanctions and maintained a naval blockade designed to increase economic strain on Tehran. The measures have contributed to a sharp decline in Iran's currency, with the rial trading at around 1.84 million to the US dollar, while inflation has surged.

Although overall inflation is estimated at roughly 50%, the prices of household essentials such as bread and cooking oil have risen by more than 200%, according to the information provided.

Iran, meanwhile, has sought to exert leverage through the Strait of Hormuz by creating what analysts describe as "uncertainty, fear and disruption" around one of the world's most important energy shipping routes.

Pfeifle said the confrontation had become a "wait-and-see game" under Trump's current strategy.

While Iran faces mounting economic pressure, a leaked US intelligence assessment suggests Tehran could withstand several more months of sanctions and disruption.

"It's unknown what Mr Trump's next steps might be," Pfeifle said.