US President Donald Trump on Monday said “unfortunately the American people would like to see us come home” even as Iran rejected a peace plan conveyed via Pakistan.

“If I had my choice, I’d keep the oil,” Trump was quoted by Politico as saying at the annual White House Easter egg roll that has been held since 1878 on the South Lawn.

“But I also want to make the people of our country happy… Unfortunately the American people would like to see us come home,” he added.

“If it were up to me, I’d take the oil, I’d keep the oil, it would bring plenty of money. I’d also take care of the people of Iran much better than they’ve been taken care of,” he said, per Politico.

“Remember, wars last years. We’re in there for 34 days. And we’ve obliterated a very powerful country in 34 days,” Trump said.

In his usual style, he kept both war and peace options open.

“I'm not worried about concerns over targeting civilian infrastructure,” he was quoted as saying in a Reuters news alert.

“You know what’s a war crime? Having a nuclear weapon. Allowing a sick country, with demented leadership, have a nuclear weapon. That’s a war crime,” Trump said.

Earlier in the day, Mojtaba Ferdousi Pour, head of the Iranian diplomatic mission in Cairo, told The Associated Press: "We won't merely accept a ceasefire. We only accept an end of the war with guarantees that we won't be attacked again."

Trump has given multiple deadlines to Iran. The report of Iran's rejection came as he was making comments to journalists at the Easter roll.

It was not clear whether Trump was aware of the news. Asked if Tuesday 8pm Washington time was his final deadline, Trump replied simply, "Yeah."

Ferdousi Pou’s response came after Reuters reported that Iran and the US had received a plan to end hostilities that could come into effect on Monday and reopen the Strait of Hormuz.

A framework to end hostilities, Reuters had reported quoting a source aware of the proposals, had been put together by Pakistan and exchanged with Iran and the US overnight, outlining a two-tier approach with an immediate ceasefire followed by a comprehensive agreement.

Iran's state-run IRNA news agency said Tehran had conveyed its response through Pakistan.

Trump's deadline for Iran centres on Tehran opening the Strait of Hormuz, through which a fifth of the world's oil is shipped in peacetime. Ferdousi Pour said Iranian and Omani officials were working on a mechanism for administrating the shipping chokepoint.

Iran's grip on the strait has caused oil prices to surge and shaken the world economy.

Iran's rejection came after Israel struck a key petrochemical plant in the massive South Pars natural gas field and killed two paramilitary Revolutionary Guard commanders.

The gas field attack aimed at eliminating a major source of revenue for Iran, Israel said. The field is critical to electricity production, but the strike appeared to be separate from Trump's threats. The gas field shared with Qatar is the world's largest.

Israel threatens Iranian officials

Egyptian, Pakistani and Turkish mediators had sent Iranian foreign minister Abbas Araghchi and US Mideast envoy Steve Witkoff a proposal calling for a 45-day ceasefire and the reopening of the strait, two Mideast officials told The Associated Press. The officials spoke on condition of anonymity to discuss the private negotiations.

Iran's foreign ministry spokesman Esmail Baghaei earlier told journalists that messages were being exchanged with mediators but "negotiations are entirely incompatible with ultimatums, crimes and threats of war crimes."

In Islamabad, two senior officials said Pakistan's ceasefire efforts are at an advanced stage but "several spoilers and detractors" are trying to sow confusion. The officials spoke on condition of anonymity because they were not authorized to speak publicly about the talks.

Meanwhile, explosions boomed in Tehran and low-flying jets could be heard for hours.

Among those killed was the head of intelligence for Iran's paramilitary Revolutionary Guard, Maj Gen Majid Khademi, according to Iranian state media and Israel's defense minister. Israel said it also killed the leader of the Revolutionary Guard's undercover unit in its expeditionary Quds Force, Asghar Bakeri.

Israel's defence minister vowed to keep targeting top-ranking officials. "We will continue to hunt them down one by one," Israel Katz said.