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Iran is making a show of normality while acknowledging its people face "hardships" as it ponders whether to accept American terms to end the war.
In a series of announcements on Thursday, Iran told workers in its capital to return to offices, began rebuilding a bridge destroyed by the US, and said its supreme leader Ayatollah Mojtaba Khamenei had met President Masoud Pezeshkian for the first time.
The focus on domestic matters came a day after a top Iranian negotiator with the US, Mohammed Bagher Ghalibaf, acknowledged "hardships" in a message to the country as it faces economic pressure from Washington.
One businessman in Tehran told The National he believed the appeal was meant to prepare Iranians to deal with several crises facing the country. “People are under a lot of pressure. It is said that inflation is 70 per cent, but the price of everything has doubled recently,” the businessman said. “Iran has a few very, very tough years ahead.”
Iran’s authorities also need to find ways to try to meet the demands of parts of the population whose protests against the government in January were brutally suppressed. “Now, a part of society that was protesting before still exists,” the man said. “They [the government] must do something to help them in some way.”
Iran was still reviewing a US peace proposal outlining a 14-point framework to end the war, as talks gather pace over wider terms that include reopening the Strait of Hormuz.
“The American proposal is still under review. Once we finalise our position, we will share it with Pakistan,” Iranian Foreign Ministry spokesman Esmaeil Baghaei said, quoted by the Isna news agency.
Pakistan, which is acting as a go-between, expressed optimism about a deal. "We remain optimistic. A simple answer would be that we expect an agreement sooner rather than later," a Foreign Ministry spokesman said.
The American-Israeli war with Iran began on February 28 when the US and Israel struck Iranian nuclear and military targets. Tehran retaliated by closing the Strait of Hormuz and launching missile and drone attacks on US bases and civilian infrastructure across Gulf states.
The US proposal to end the conflict reportedly outlines a phased de-escalation, including limits on Iran’s nuclear programme in exchange for sanctions relief and unfreezing Tehran's assets. It also touches on reducing tension in vital shipping lanes.
A Pakistani source involved in the mediation process told Reuters the two sides were moving closer to a one-page agreement, echoing an Axios report on a 14-point draft.
US officials have described the plan as an interim arrangement designed to halt the fighting and open a 30-day window for detailed negotiations. Washington has not confirmed the draft, but has said talks are at their most advanced stage since the war began.
US President Donald Trump has said the war could end and the strait could reopen if Iran honours the terms of any agreement, warning that otherwise military action could escalate. “If they don’t agree, the bombing starts,” he wrote in a post on Truth Social.
Mr Trump has expressed frustration at the pace of talks, warning that soaring energy prices linked to the closure of the strait could hurt Republicans in November’s midterm elections. The US leader is facing growing political pressure as energy prices surge following the closure of the strait.
In Tehran, reaction has been sceptical. A senior Iranian parliament member, Ebrahim Rezaei, dismissed the reported US text as unrealistic, calling it “more of an American wishlist than a reality”.
“Iran has its finger on the trigger and is ready; if they do not surrender and provide the necessary concessions, or if they or their subservient proxies attempt any mischief, we will deliver a harsh and regrettable response,” Mr Rezaei said.
Mr Ghalibaf, the parliament Speaker, has emerged as a central player in the Iranian authorities, as supreme leader Mojtaba Khamenei remains nowhere to be seen and President Pezeshkian appears to have been sidelined.
Mr Pezeshkian said he spoke to Mr Khamenei for almost two and a half hours during their first known meeting. Speaking to a group of tradespeople, he described the supreme leader as having a "humble and deeply intimate manner", but gave no clues to his condition.
In a five-point message published on the state news agency Irna, Mr Ghalibaf urged Iranians to conserve resources and "to help one another endure fewer hardships", while appealing to diaspora Iranians, whom he said have great "economic, expert and communication" capacities.
“Overall, the government and parliament are sending this message to say that if we reach an agreement [to end the war], in order to build Iran and make it prosperous and put it on the path to development, the people must help," the businessman said.
Workers in Tehran have been told to return to 100 per cent office attendance from next week, ending their wartime absence. Attendance had been limited to 20 per cent after the Persian New Year holiday. Iran's economy is expected to take a significant hit from the war, with the International Monetary Fund forecasting it will shrink by 6.1 per cent this year.
The US and Gulf states have drafted a UN Security Council resolution calling on Iran to halt attacks on shipping and protect navigation in the strait.
