Iran has sent a peace proposal to the U.S. which would stop hostilities in all fronts their conflict, including in Lebanon, and seek reparations for damage caused by the conflict, according to reports in state media on Tuesday.

Tehran's plan also calls for U.S. forces to exit areas close to Iran, as well as the removal of sanctions, the unfreezing of funds, and the end to an American blockade of Iranian ports, the IRNA news agency said.

Citing a Pakistani source, Reuters reported that Islamabad had shared Iran's proposal with the United States. Pakistan has been a frequent intermediary between both sides since the start of the conflict in late February.

Notably, Iran's latest offer does not appear to be substantially different from prior terms that U.S. President Donald Trump described as "garbage" last week, Reuters added.

On Monday, Trump said he had called off carrying out fresh attacks on Iran, following a request from three Gulf leaders.

The president claimed in a social media post that "serious negotiations are now taking place," adding that, "in the opinion" of the Gulf authorities, a "Deal will be made, which will be very acceptable to the United States of America, as well as all Countries in the Middle East, and beyond."

He added that the agreement will include "NO NUCLEAR WEAPONS FOR IRAN!" -- although he flagged that he had ordered the U.S. military to remain prepared to launch a "full, large scale assault on Iran, on a moment's notice" if an accord is not reached.

The Associated Press reported that Iranian state television called Trump's comments a "retreat" from a threat to launch more attacks out of "fear," adding that defense systems had been activated on an island in the Strait of Hormuz that is home to a key water desalination plant.

Oil prices ticked lower, although Brent crude futures, the global benchmark, are still floating around $110 a barrel, well above pre-war levels of $70 per barrel. Fears that an energy shock could lead to a wave of inflation and elevated borrowing costs drove a sell-off in government bonds in recent days, but yields on sovereign debt have broadly stabilized.

Crucially, despite hopes for a detente between Washington and Tehran, the Strait of Hormuz remains all but shuttered to tanker traffic, denting key energy supplies to countries around the world. Analysts have been keeping close tabs on what a prolonged closure of the narrow waterway off Iran's southern coast, a major conduit for roughly a fifth of the world's oil, could mean for global growth.

"Stagflation is spreading globally as the closure of the Strait of Hormuz stymies trade, slows economies, and exacerbates inflation," analysts at Yardeni Research said in a note.