Iran has submitted a revised proposal for ending the conflict to the United States, leaving room for compromise in an effort to restart talks and break the costly stalemate affecting its economy.

However, the two sides remain far apart on key issues, such as the full reopening of the Strait of Hormuz and Tehran’s nuclear program, according to sources familiar with the negotiations cited by The Wall Street Journal. This suggests talks are still on a knife-edge. At the same time, Arab media report that Pakistani mediators urged Donald Trump not to rush into a new military option, at least until next week, as diplomatic solutions may still emerge.

“They want to make a deal, but I’m not satisfied,” the U.S. president told reporters on Friday. “We’ll see what happens.”

Tehran’s proposal marks a step toward the U.S., suggesting that terms for reopening the Strait of Hormuz be discussed in parallel with American guarantees to halt attacks and ease the blockade on Iranian ports, according to the same sources.

Previously, Iran had demanded that the U.S. lift the blockade as a precondition for talks and agree on terms to end the war before any discussion on the strait or its nuclear program.

The new proposal also foresees that nuclear issues would be discussed in exchange for the lifting of U.S. sanctions.

According to WSJ sources, Tehran has informed mediators it is ready to sit at the negotiating table in Pakistan early next week, provided Washington shows a positive response to the proposal.

“I think it aligns everyone’s incentives, as both the U.S. and Iran could gain some limited economic relief, while pushing more difficult and time-consuming issues further down the road,” Richard Nephew, a former senior U.S. negotiator with Iran and now at Columbia University, told the newspaper.

Iranian state media confirmed that a new proposal had been submitted to mediators and said the country is willing to return to diplomacy if the U.S. tones down its rhetoric.

Iran’s Foreign Ministry did not immediately respond to requests for comment, while the White House also declined to elaborate.

“We do not comment on private diplomatic conversations. President Trump has made it clear that Iran can never obtain a nuclear weapon, and negotiations continue to ensure the short- and long-term national security of the United States,” said White House spokesperson Anna Kelly.

This latest diplomatic move follows a prolonged standoff, during which Iran refused to send a delegation for a second round of talks in Pakistan last week, while both sides intensified their economic confrontation in waters around Iran.

Tehran has effectively closed the Strait of Hormuz for weeks, carrying out attacks on tankers and other vessels, restricting access to a critical route through which roughly one-fifth of global oil supplies pass.

In response, the U.S. imposed a blockade on Iranian ports and vessels, aiming to hit Tehran’s main source of revenue and force concessions.

According to U.S. officials, Trump has asked his team to prepare for a prolonged blockade of Iran. The mutual pressure has curbed the country’s exports and imports, while keeping Brent crude prices above $100 per barrel.

Tehran has made clear it is unwilling to make major concessions regarding its nuclear program. In a proposal submitted last weekend, it said it would only discuss nuclear issues after all other matters related to the strait and the end of the war are resolved.

The U.S. is seeking for Iran to halt nuclear fuel enrichment for up to 20 years and to surrender its stockpiles of highly enriched uranium — demands Tehran rejects.

Despite the deadlock, both sides continue to exchange messages through various mediators, including Pakistan, Qatar, Egypt, and Turkey. Neither side has ruled out talks, although hopes for a meeting in Pakistan last weekend did not materialize.

Iranian Foreign Minister Abbas Araghchi traveled twice to Islamabad, but Trump canceled the dispatch of his close aides as Tehran did not confirm its readiness to participate.

On Friday, the U.S. Treasury’s Office of Foreign Assets Control warned shipowners not to pay fees to Iran for safe passage through the strait, whether directly or through informal exchanges or donations to Iranian organizations such as the Iranian Red Crescent.