On June 20, 1982, Saddam announced that he wanted to sue for peace and proposed an immediate ceasefire and withdrawal from Iranian territory within two weeks. Khomeini responded by saying the war would not end until a new government was installed in Iraq and reparations paid. He proclaimed that Iran would invade Iraq and would not stop until the Ba'ath regime was replaced by an Islamic republic.
On 20 June, the British retook the South Sandwich Islands, which involved accepting the surrender of the Southern Thule Garrison at the Corbeta Uruguay base, and declared hostilities over. Argentina had established Corbeta Uruguay in 1976, but prior to 1982 the United Kingdom had contested the existence of the Argentine base only through diplomatic channels.