[ANALYSIS] Iran War Day 65: US-Iran talks stall as Lebanon escalation widens

OVERVIEW Negotiations remain stalled after Trump said he was “not satisfied” with Iran’s latest proposal. Trump warned US strikes could restart if Iran “misbehaves”. Israel ordered evacuations across 11 towns and villages in southern Lebanon despite the ceasefire. The US continues seeking allied support for a potential Hormuz shipping coalition. US / IRAN TALKS US President Trump said late Friday that he was "not satisfied" with the new peace proposal from Iran. US President Trump posted at 23:47 BST on May 2nd that he would review Iran’s proposal but “can’t imagine that it would be acceptable”, Trump added that Iran had “not yet paid a big enough price”, according to Truth Social. Iran’s latest proposal included ending the war, reopening the Strait of Hormuz, lifting the US blockade, delaying nuclear talks, sanctions relief, and recognition of peaceful uranium enrichment rights. Senator Lindsey Graham urged Trump to “finish the job” and resume attacks if Iran continues to play hardball. Analysts say Iran has not materially changed its negotiating position, continuing to push for nuclear talks to be deferred to a later stage. US POSITION Trump said US strikes could restart if Iran “misbehaves”. The US is seeking allies to join a potential international coalition to ensure shipping through the Strait of Hormuz. Trump threatened to withdraw more US troops from Germany beyond the 5,000 already announced, and warned Italy and Spain could be next. NATO said it remains confident in its deterrence capabilities despite the US troop withdrawal. IRAN POSITION Iran said the US blockade amounts to piracy and called for UN action. Iran is seeking future control over the Strait of Hormuz, including banning Israeli ships, requiring Iranian permission, and charging or restricting vessels from “warring countries”. Iran condemned Europe’s “unconstructive” approach to its nuclear programme. LEBANON / ISRAEL Israel told residents in 11 towns and villages in southern Lebanon to evacuate, warning it was operating against Hezbollah. Israel and Hezbollah continued exchanging attacks despite the ceasefire. At least 41 people were killed in Lebanon over 24 hours, according to Lebanon’s health ministry.