Iran Sets Peace Conditions Amid Escalating Gulf Attacks and Rising Civilian Toll

On the 12th day of the conflict sparked by the February 28 strikes, Iranian President Masoud Pezeshkian has signaled a potential, though conditional, path to peace. Tehran is demanding financial compensation from the U.S. and Israel for infrastructure damage, alongside trilateral peace consultations involving Russia and Pakistan. However, this diplomatic overture contrasts sharply with the rhetoric of the new Supreme Leader, Mojtaba Khamenei. In his first public address since succeeding Ali Khamenei, he vowed to sustain military operations and suggested using the closure of the Strait of Hormuz as leverage against the international community. The regional security situation continues to deteriorate as Iranian-linked attacks spread across the Persian Gulf. Saudi Arabia reported intercepting dozens of drones targeting its Eastern Province oil fields, while tankers and energy infrastructure in Iraq, the UAE, and Kuwait have sustained damage. The economic ripple effects of these attacks are beginning to impact the United States, where rising gasoline prices are complicating President Trump’s economic messaging ahead of the midterm elections. President Trump stated on March 11 that he remains capable of ending the war at any time as U.S. strikes continue to degrade Iranian military targets. The humanitarian crisis in Iran has reached a critical point, with the UN reporting 3.2 million displaced persons and 1,350 civilian deaths attributed to the U.S.-Israeli bombing campaign. Domestically, U.S. lawmakers are increasing pressure on the administration; a group of 46 Democratic and independent senators has formally requested a Pentagon investigation into civilian casualties, specifically citing a recent strike on a school. Despite sustaining injuries in the strike that killed his predecessor, Mojtaba Khamenei reportedly intends to lead upcoming Eid prayers while maintaining his hardline stance.