Iran-US Talks Fully Deadlocked on Day 73 — Tehran Stands by Counter-Proposal; Foreign Ministry: US Has 'Unreasonable Demands'; Netanyahu: 'Conflict Not Over'

On May 11, 2026 (Day 73), the Iran-US diplomatic track entered full deadlock following Trump's May 10 rejection of Iran's counter-proposal. Iran's Foreign Ministry spokesperson stated that the US continues to hold 'unreasonable demands,' while insisting Iran's own counter-proposal remains 'reasonable.' There was no indication that either side was preparing a new negotiating document. Pakistani intermediaries declined to characterize the talks as dead, saying only that 'channels remain open.' Netanyahu separately warned that the conflict with Iran 'is not over,' a statement that alarmed Gulf markets and raised fears of a renewed Israeli offensive phase as the Lebanon-Israel ceasefire approached its May 17 expiry. The ceasefire between Iran and the US, nominally in effect since April 8, was described by multiple outlets as 'increasingly shaky' amid continued naval exchanges in the Strait of Hormuz. Kalshi prediction market odds for a US-Iran deal by 2027 fell sharply on Day 73, reversing the optimism that had built during the MOU discussions of late April through early May.