Iran says Trump must choose between 'impossible' military operation and 'bad deal'
Negotiations between Tehran and Washington remain deadlocked.
Iran's Revolutionary Guard has warned that the US must choose between a "bad deal" with Iran and an "impossible" military operation.
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This comes in response to the US President dismissing Tehran's most recent peace proposal. Tehran submitted a 14-point plan "focused on ending the war" on Thursday, via Pakistani mediators.
Trump responded to the offer in a Saturday Truth Social post, saying: "I will soon be reviewing the plan that Iran has just sent to us, but can't imagine that it would be acceptable in that they have not yet paid a big enough price for what they have done to Humanity, and the World, over the last 47 years."
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The Iranian Revolutionary Guard Corps responded to Trump in a statement on Sunday, insisting that "The room for US decision-making has narrowed."
The Guard, which is the primary military force of the Iranian state, said Trump faced a choice between "an impossible operation or a bad deal with the Islamic Republic of Iran."
In an interview with reporters at his Palm Beach resort in Florida, President Trump refused to go into detail about further US military action in the Gulf but said it remained a possibility.
"If they misbehave, if they do something bad, but right now, we'll see," he said. "But it's a possibility that could happen, certainly."
US officials remain hopeful that economic pressure will push Tehran to make further concessions in peace talks.
Treasury Secretary Scott Bessent told Fox News the US naval blockade was part of a powerful economic embargo on Iran: "We are suffocating the regime, and they are not able to pay their soldiers. This is a real economic blockade, and it is in all parts of government - all hands on deck."
Pakistan first brokered US-Iran peace talks in early April, but discussions fell through after just one day following Iran's refusal to agree to never developing a nuclear weapon.
The question of which country will control the Strait of Hormuz - a vital waterway responsible for the transport of 20% of the world's oil - was also reportedly a source of disagreement.