Trump called Iran’s counterproposal “totally unacceptable,” extending a 10-week conflict that has disrupted Hormuz shipping and lifted oil prices.
U.S. President Donald Trump rejected Iran’s latest counterproposal to end the 10-week Middle East war, calling it "totally unacceptable," while Tehran signaled it would not accept terms it described as surrender.
The setback leaves the Strait of Hormuz at the center of a wider diplomatic and economic standoff. The waterway has been choked by the conflict, energy markets remain volatile, and Washington has sought to press Beijing to lean on Tehran to reopen the strait, though China’s willingness to act as a pressure point remains unclear.
In a Truth Social post Sunday, Trump wrote that he had read the response from Iran’s representatives and did not like it. Iranian state media framed Tehran’s position as a rejection of a U.S. proposal it characterized as a demand for surrender.
Iran’s counterproposal, according to the report, insists on war reparations, full sovereignty over the Strait of Hormuz, an end to sanctions and the release of frozen Iranian assets. Iranian President Masoud Pezeshkian wrote on X in Persian that Iran would "never bow our heads before the enemy," adding that dialogue or negotiation did not mean surrender or retreat.
The nuclear dispute remains a core obstacle. The Wall Street Journal reported that Iran rejected U.S. demands involving its nuclear program and highly enriched uranium stockpile, instead proposing separate negotiations and offering to dilute some highly enriched uranium while transferring the rest to a third country under conditions that would allow its return if Washington left any future deal.
The U.S. wants assurances that Iran will end its nuclear program as part of any peace agreement. Iran has reportedly agreed to suspend uranium enrichment for a shorter period than the 20-year moratorium proposed by Washington, but has rejected dismantling its nuclear facilities. Tehran has also demanded that the U.S. end its blockade of Iranian ports as a condition for reopening the Strait of Hormuz.
Markets reflected the strain. U.S. West Texas Intermediate futures for June delivery rose 4.96% to $100.30 a barrel Monday, while Brent crude futures for July delivery climbed 4.92% to $105.76 a barrel.
Regional tensions also continued. The United Arab Emirates said it intercepted two drones coming from Iran, Qatar condemned a drone attack that struck a cargo ship in its waters, and Kuwait said its air defenses encountered hostile drones that entered its airspace. Iranian Army spokesperson Brig. Gen. Mohammad Akraminia warned of "surprising options" if adversaries made another "miscalculation."
Israeli Prime Minister Benjamin Netanyahu, speaking on CBS’ "60 Minutes," said the war was not over because there was "more work to be done," citing Iran’s enriched uranium, enrichment sites, regional proxy support and ballistic missile program.
The unresolved standoff is now expected to loom over Trump’s upcoming summit with Chinese President Xi Jinping in Beijing. China has an interest in stable shipping through Hormuz, but Beijing also maintains a strategic partnership with Tehran, making its role in any de-escalation effort uncertain.
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