US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu reportedly held a tense phone conversation on Tuesday over the future of diplomacy with Iran, amid growing disagreements on whether to continue negotiations or return to military action.

According to reports, the two leaders discussed a revised peace proposal prepared by Qatar and Pakistan, with support from several regional mediators, aimed at narrowing differences between Washington and Tehran. One source familiar with the conversation reportedly described Netanyahu’s reaction after the call by saying his “hair was on fire”.

While Trump has continued to express optimism that a diplomatic breakthrough with Iran remains possible, he has also warned that military action is still on the table if negotiations collapse.

“We’ll either have a deal or we’re going to do some things that are a little bit nasty,” Trump said on Wednesday.

He later added that discussions were “right on the borderline” between a peaceful agreement and renewed conflict.

Netanyahu Pushes for Renewed Military Action

Reports suggest Netanyahu remains deeply sceptical about diplomacy and is urging both Israel and the United States to resume military operations against Iran in order to further weaken Tehran’s military capabilities and strategic infrastructure.

According to CNN, Netanyahu argued during the hour-long conversation that delaying planned strikes on Iran had been a mistake and pushed for continued military pressure. Israeli officials are reportedly frustrated with what they see as Iran’s deliberate delays in negotiations.

Trump had earlier informed Netanyahu that the US was prepared to move forward with targeted strikes under a proposed operation known as “Operation Sledgehammer”. However, the plan was reportedly paused after appeals from Gulf allies including Qatar, Saudi Arabia and the UAE.

During Tuesday’s call, Trump told Netanyahu that mediators were now working on a “letter of intent” that could formally end the conflict and launch a 30-day negotiation process focused on Iran’s nuclear programme and the reopening of the Strait of Hormuz.

Regional Mediators Intensify Diplomatic Efforts

Regional powers have stepped up mediation attempts in recent days. Reports indicate that Pakistan, Qatar, Saudi Arabia, Turkey and Egypt have been actively refining a new draft proposal designed to bridge the gap between Washington and Tehran.

Qatar reportedly dispatched a delegation to Tehran earlier this week for talks with Iranian officials.

Iran has confirmed that it is reviewing the updated proposal. Foreign ministry spokesman Esmaeil Baqaei said Tehran had “received the points of view of the American side” and was examining them carefully.

Iran has continued to demand the release of frozen assets and an end to what it calls US “piracy” targeting Iranian shipping.

Iranian President Masoud Pezeshkian also reiterated Tehran’s commitment to diplomacy, stating that Iran had “consistently honoured its commitments and explored every avenue to avert war”.

“All paths remain open from our side,” he said.

Trump Says Diplomatic Window May Soon Close

Despite ongoing mediation efforts, Trump has repeatedly warned that the opportunity for diplomacy may not last much longer.

“It’s right on the borderline, believe me,” Trump said. “If we don’t get the right answers, it goes very quickly. We’re all ready to go.”

Trump also suggested that Netanyahu would ultimately align with Washington’s position on Iran.

“Netanyahu will do whatever I want him to do,” he said.

Meanwhile, Israel’s military leadership has maintained a high state of alert. Israeli army chief Eyal Zamir stated that the military was “prepared for any development”.

Tensions Remain High Despite Ceasefire

The latest diplomatic push comes after an April 8 ceasefire temporarily halted direct fighting involving Iran, the United States and Israel.

However, tensions across the region remain high, and continued disruptions in the Strait of Hormuz have added pressure to global energy markets and international shipping routes.