Iran News Day 27: US warns of 'hell' if Iran rejects peace efforts as Tehran maintains 'no talks' policy, Israel attacks Isfahan again

The war in the Gulf entered its 27th day on Thursday with no clear diplomatic breakthrough, as conflicting signals from Tehran and Washington cast doubt over whether a peace process is truly underway. While the United States has advanced a proposal to end the conflict, Iran’s response has been cautious and layered, reflecting internal deliberations rather than a unified position.

Public messaging has only deepened the ambiguity.

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Iranian officials insist that indirect exchanges via mediators such as Pakistan, Turkey and Egypt cannot be described as negotiations, even as proposals are actively reviewed at the highest levels.

In contrast, the White House has projected guarded optimism, describing talks as ongoing while simultaneously warning of severe military consequences if its terms are rejected. Press Secretary Karoline Leavitt said in a press conference on early Thursday that the US forces are ready to "unleash hell" on Iran if Tehran dares to reject the deal.

Oil markets have become a barometer of this uncertainty as it marked some ease with the prospect a truce.

Also Read | Israel Air Force completes wave of strikes in Iran's Isfahan: IDF

Prices fell after initial reports of the proposal, signalling investor hope for de-escalation and restored energy flows through the Persian Gulf.

Against this backdrop, the conflict continues to widen geographically and strategically.

Military strikes, threats to key shipping routes, and warnings from global leaders point to a war that is not only unresolved but potentially entering a more dangerous phase without a clear diplomatic off-ramp. For a second consecutive day, Iran's Isfahan was attacked by US-Israeli forces.

Incident occurred during flight operations; condition not serious, says US 5th Fleet

- US Navy sailor injured aboard USS Abraham Lincoln (CVN 72) on March 25

- Incident took place during flight operations in the Arabian Sea

- US 5th Fleet says injury not combat-related

- Condition not life-threatening

- No further details disclosed on nature of incident

World Bank ready 'at scale'

The World Bank said it was prepared to provide immediate financial assistance to countries in emerging markets dealing with the economic fallout of the conflict in the Middle East.

"We are ready to respond at scale -- combining immediate financial relief with policy expertise and private sector support for the recovery of jobs and growth," the World Bank Group said in its first statement on the crisis.

Trump 'not desperate'

US President Donald Trump denied being "desperate" to make a deal with Iran, as he mixed threats with diplomacy in a push to wrap up his war in the Middle East.

Holding his first cabinet meeting since the start of the joint US-Israeli operation, Trump insisted that Iran was being "beat to shit" and was "begging" for a deal, despite Tehran's denials.

US President Donald Trump said taking control of Iran's oil was an "option", comparing it to the deal Washington made with Venezuela after toppling Nicolas Maduro.

Trump claims tanker 'present'

Iran allowed 10 oil tankers to pass through the strategic Strait of Hormuz as a "present" to show it was serious about negotiations to end the war, US President Donald Trump said.

Referring to cryptic comments earlier this week about a "gift" from Tehran, Trump said Iran allowed eight "big boats of oil" to transit the waterway earlier this week, followed by two others later on.

Reported killing of IRGC Navy chief comes

• IRGC Navy commander Alireza Tangsiri reportedly killed in strike in Bandar Abbas; no official confirmation
• Report links him to Strait of Hormuz closure
• IRGC launches fresh strikes on US bases after attacks on Iran
• Says 82 waves of missile, drone strikes under Operation True Promise 4
• Hezbollah, Iraqi groups join offensive
• Warns US-Israel against ground action
• US may deploy 82nd Airborne; Kharg Island option under review
• IRGC claims over 70 targets hit, including Haifa, Dimona, Tel Aviv areas

Iran reviews peace proposal

• Abbas Araqchi said Tehran is assessing a U.S. proposal but stressed that exchanges via intermediaries “do not mean negotiations with the U.S.”
• The proposal, attributed to Donald Trump, reportedly includes curbs on Iran’s nuclear programme, missile capabilities and regional alliances.
• Iranian officials have indicated a negative initial response but stopped short of outright rejection, suggesting internal deliberations are ongoing.
• Tehran has also linked any agreement to broader regional conditions, including halting attacks on allied groups such as Hezbollah.

White House insists on progress

• Karoline Leavitt said talks remain “productive,” rejecting claims that negotiations have stalled.
• She warned that President Trump is prepared to “unleash hell” if Iran fails to accept U.S. demands.
• Washington framed its position around achieving key military objectives under “Operation Epic Fury.”
• The dual messaging—ongoing talks alongside threats—has added to uncertainty over the true state of diplomacy

Isfahan attacked for a second day straight

• The Israel Defense Forces said it carried out a “wide-scale” wave of strikes targeting infrastructure in Isfahan and other areas.
• The city, a key military and industrial hub, has seen repeated attacks, including strikes on weapons manufacturing facilities.
• Overnight operations also targeted production sites and air defence systems in and around Tehran.
• Reports indicated damage in both strategic and residential areas, highlighting the widening scope of strikes.

Iran imposes 'toll' for Hormuz route

• A Lloyd’s List report said Iran’s IRGC has enforced a de facto “toll booth” system in the Strait of Hormuz.
• Ships are required to submit documentation, obtain clearance codes and follow IRGC-controlled transit corridors.
• Data suggests vessels have avoided traditional routes, instead using pre-approved paths since mid-March.
• India’s shipping authorities rejected claims of any legal toll, stressing freedom of navigation under international law.

Israel continues strikes

• Israel has also pushed to retain the right to conduct pre-emptive strikes under any future agreement.
• Fresh strikes have targeted Iranian naval shipyards and other infrastructure.
• Military operations have continued without adjustment, described by officials as “business as usual.”
• Israeli officials expressed skepticism that Iran would agree to the proposed terms, citing concerns over potential U.S. concessions.

Regional tensions escalate

• Antonio Guterres warned the world is “staring down the barrel of a wider war.”
• Iranian officials threatened retaliation against neighbouring countries accused of aiding adversaries.
• The Strait of Hormuz has already been effectively disrupted, impacting a major share of global energy flows.
• Iran warned it could expand the conflict to the Bab al-Mandab Strait, a key global shipping route.

Markets show tentative relief

• Despite the reaction, ongoing strikes and uncertainty continue to cloud the economic outlook.
• Earlier sharper declines highlighted how sensitive markets remain to diplomatic developments.
• Oil prices fell around 2% to $102 initally and rose again on early Thursday to $103.35, reflecting expectations that supply disruptions could ease.
• Global equities recovered slightly after news of the U.S. proposal raised hopes of de-escalation.

Country-wise death toll as on Thursday morning

• Iran: At least 3,268 killed, including 1,443 civilians (217 children), 1,167 military personnel, and 658 unclassified individuals
• Lebanon: 1,094 killed, including 121 children and 42 healthcare workers
• Israel: 17 civilians killed (including foreign nationals) and 2 military personnel killed in combat
• West Bank: 4 civilians (women) killed
• Iraq: At least 96 killed, including fighters, security personnel, and foreign troops
• Gulf States (combined): 36 killed, including civilians, military personnel, and contractors across multiple countries
• Jordan: No deaths reported (29 injured)
• Syria: No deaths reported (8 injured)
• US Military (regional): At least 13 personnel killed, with around 200 injured