WASHINGTON — The White House insisted that peace talks with Iran are ongoing, even as Tehran publicly rejected U.S. overtures and issued fresh conditions of its own to end the conflict that has wreaked havoc across the Middle East and global markets.

“The United States has been engaged over the last three days in productive conversations,” White House press secretary Karoline Leavitt told reporters Wednesday. “You’re beginning to see the regime look for an exit ramp.”

“If Iran fails to accept the reality of the current moment,” Leavitt added, “Trump will ensure they are hit harder than they have ever been hit before. President Trump does not bluff and he is prepared to unleash hell.”

Her comments ran counter to Iran’s earlier statements through state-run media publicly rejecting Trump’s push for talks. Tehran is also seeking its own guarantees, including that the United States and Israel won’t resume their attacks, reparations for war damages and recognition of its authority over the Strait of Hormuz, state-owned Press TV said.

Trump on Monday set a five-day deadline for Iran to negotiate a deal to end the war. Halfway through that period, there are lingering questions over the status of negotiations and the likelihood for a deal.

The U.S. has compiled a 15-point peace proposal that Pakistan delivered to the Islamic Republic, according to people familiar with the matter, highlighting the urgency within Trump’s administration to resolve a conflict it started alongside Israel almost a month ago. Leavitt on Wednesday said there were “elements of truth” to the reported U.S. proposal, but cautioned against speculating on anonymously provided plans.

Vice President JD Vance may travel to Pakistan for Iran talks this weekend, CNN reported. Asked for comment on that report, Leavitt said “this is a fluid situation, and speculation about meetings should not be deemed as final until they are formally announced by the White House.”

As the war approaches the four-week mark, each side has kept up attacks even amid renewed efforts to jawbone the other into a resolution. Iran’s state-run Press TV reported that the country’s Bushehr Nuclear Power Plant came under fire.

“We are very close to meeting the core objectives” of the operation and “this military mission continues unabated,” Leavitt said Wednesday.

The latest developments, though, dashed hopes for a quick resolution to the conflict. The Trump administration has shown fresh urgency to end the war, with both sides vying for control of the vital Strait of Hormuz, which remains largely closed.

Brent oil fell to settle below $103 a barrel as traders tentatively priced in the prospect of a U.S. diplomatic push to end the war with Iran. Though conviction in de-escalation remains low, investors saw the pullback as a rare off-ramp after crowding into long positions since the start of the month.

Washington has ordered more troops to the region, with some set to arrive before week’s end. The White House has asserted that Trump is keeping all options open for further military action.

The U.S. plan stipulates that the Islamic Republic dismantle its main nuclear facilities and use a reduced missile arsenal in self-defense only, according to people familiar with the matter. Iran would retain certain concessions in return, including sanctions relief.

Iran has effectively shuttered the Strait of Hormuz, a conduit for about a fifth of the world’s oil and liquefied natural gas, triggering a global supply shock. That has sparked fears of an inflation crisis and worldwide food shortages.

Leavitt on Wednesday also announced that a summit between Trump and Chinese President Xi Jinping that was slated for later this month would instead take place in May. Trump had postponed the meeting to keep his focus on the war, which brought fresh strains to U.S.-China ties. Iran is a major trading partner for China, the world’s largest crude importer.

Leavitt said the administration has “always estimated approximately four to six weeks” for the conflict when asked if the new dates indicated Trump would look to wind down the war by that point. And she sidestepped a question about whether concluding the war was a precondition for rescheduling the Trump-Xi meeting.

Iran maintained its missile and drone strikes Wednesday, and shows little sign of backing down despite relentless Israeli and U.S. bombardment. Iranian media said the country fired more missiles at Israel, while Saudi Arabia intercepted a drone in the east of the country. A strike targeting Kuwait set ablaze a fuel tank at its main airport.

Trump has publicly signaled any peace agreement would have to include a prohibition on Iran ever obtaining a nuclear weapon or enriching radioactive material for civilian purposes. He’s insisted that Iran wants to “make a deal.”

The U.S. leader has said he hopes to reach an agreement by the end of the week. That may be difficult given the wide gaps that remain between the sides, even if talks get officially underway.

It’s also unclear who the U.S. is negotiating with since several top Iranian government and military officials have been killed, including Supreme Leader Ali Khamenei on the conflict’s first day. On Monday, Axios identified Mohammad-Bagher Ghalibaf, Iran’s speaker of parliament, as the likely front man for talks, though he denied negotiations have taken place.

“We are closely monitoring all U.S. movements in the region, especially troop deployments,” Ghalibaf said in a social media post Wednesday. “Do not test our resolve to defend our land.”

There’s also little clarity over whether Iran will immediately allow commercial ships safe passage through the Strait of Hormuz, as well as how Israel would respond to any deal. Israeli officials have said they’ll continue striking Iran for now.

Israeli Prime Minister Benjamin Netanyahu has asked close confidant Ron Dermer to monitor the U.S.-Iranian negotiations and make sure the Jewish state’s interests are upheld. The appointment signals how seriously Netanyahu views the talks and his government’s wariness of a deal that could undermine Israel’s security.

Gulf states such as Saudi Arabia and the United Arab Emirates are considering joining the war against Tehran, according to several people with knowledge of the situation. They would only do so if the Islamic Republic attacks vital power and water infrastructure — a high threshold, the people said.

Turkey, meanwhile, is conducting intense diplomacy to try to prevent Gulf Arab countries from becoming involved, according to people familiar with the matter.

Steve Witkoff and Jared Kushner, two of Trump’s special envoys, as well as Secretary of State Marco Rubio and Vance have been involved in the negotiations with Iran, according to the president.

The president boasted Tuesday that the U.S. is in “a good bargaining position” after weeks of strikes that he says have taken out Iranian missiles, launchers and ships.

Yet around the world, the conflict has led to surging fuel and fertilizer prices, with commercial tankers avoiding crossing the strait and Iranian attacks damaging energy infrastructure.

Iran has more aggressively asserted its control over Hormuz, starting to charge transit fees for some commercial vessels. Payments of as much as $2 million per voyage are being sought on an ad hoc basis, effectively creating an informal toll on the waterway, according to people familiar with the matter.

More than 4,500 people have been killed in the conflict, according to governments and nongovernment agencies. Around three-quarters of the fatalities have been in Iran, while more than 1,000 people have died in Lebanon, where Israel is fighting a parallel war against Iran-backed Hezbollah militants. Dozens have been killed in Israel and Arab Gulf states.

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(With assistance from John Bowker, Mia Gindis and Josh Wingrove.)

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