Trump didn't go into specifics as to why he found the proposal unsatisfactory.
President Donald Trump announced "major combat operations" against Iran on Feb. 28, with massive joint U.S.-Israeli strikes targeting military, government and infrastructure sites.
Delegations from the U.S. and Iran entered negotiations in June aimed at a war-ending deal based on a memorandum of understanding signed by both countries.
Those talks broke down as the U.S. and Iran continued to exchange strikes, with the strategic Strait of Hormuz as the primary flashpoint. Trump then said in August that the U.S. would launch a "crushing economic operation" to force Tehran into submission.
The Saudi General Directorate of Civil Defence on Thursday issued safety alerts for five regions amid continued cross-border hostilities with the Iran-backed Houthi rebels in Yemen.
The directorate posted safety alerts to X for the regions of Yanbu, Tabuk, Taif, Mecca and Jeddah.
All warnings were lifted soon after they were announced, with the directorate saying that the "danger has passed."
Senior Iranian figures praised Iranian President Masoud Pezeshkian's Wednesday address to the United Nations General Assembly, in which he said Tehran "will never bow" to U.S. threats.
Maj. Gen. Ali Abdollahi, the chief of staff of the Iranian armed forces, wrote in a post on X that Pezeshkian's speech constituted "a slap in the face" to the U.S., after President Donald Trump said he was mulling a "big decision" at to whether to make a deal with Tehran or "quickly annihilate" the country.
"As long as Iran's waters, land and skies remain under threat, no aggressor nation -- nor any supporter of such aggressors -- shall enjoy security," Abdollahi said.
The speaker of the Iranian parliament and Tehran's chief negotiator, Mohammed Bagher Ghalibaf, said in a post to X that Pezeshkian "spoke not just for a government, but for a 3,000-year-old civilization. He was the powerful voice of courage, resilience and strength for the Islamic Republic of Iran."
Iran has been forced to cancel regional international flights because of pressure from U.S. sanctions, Iranian officials said.
Iranian media, citing the Civil Aviation Authority, said Baghdad, Iraq, Oman and Azerbaijan will no longer receive flights from Iran. Four Iraq flights were being re-routed to Najaf, Iraq.
Austrian Airlines said in a statement to ABC News that it suspended operations to and from Tehran until Oct. 24. FlyDubai also said it is no longer operating flights to Iran.
-ABC News' Desiree Adib
After President Donald Trump threatened to "annihilate" Iran during his speech at the U.N. General Assembly, Iran’s President Masoud Pezeshkian got the chance to respond from the same podium Wednesday morning, where he was critical of both the U.S. and Israel.
"Yesterday, the United States president described us as terrorists. We have been victims of terrorism," he began.
He held up photos of children in a classroom and memorial sites, referencing strikes on the Minab school and a sports hall in Lamerd—two attacks a U.N.-backed report recently said could amount to war crimes committed by the U.S.
"You see these children? These children perished under bombs, with weapons used by the United States and Israel. They were innocent," he said. "We have only defended ourselves. We are not terrorists."
As he spoke, the lone American diplomat who had been sitting in the U.S. section of the audience walked out of the hall.
Pezeshkian dismissed concerns about Iran’s nuclear program, insisting it was for purely peaceful purposes.
"We will not bow our head and give up the right that is inherently ours. We say it clearly: no nuclear weapons and no limitations to peaceful nuclear technology. Our peace will not come in the field of battle, but they must give the needed security to the people and nation of Iran," he said.
He also addressed the situation in the Strait of Hormuz, claiming Iran wanted to have good relationships with other countries in the region but that "we cannot let some have free access" to the waterway if they were using it "to impose aggression."
-ABC News' Shannon Kingston
