US President Donald Trump has rejected Iran’s response to a recent American peace proposal aimed at ending the ongoing Gulf conflict, describing Tehran’s counter offer as “TOTALLY UNACCEPTABLE.” His reaction, posted on social media just hours after Iran’s reply was delivered via Pakistani mediators, has cast fresh doubt on attempts to halt months of fighting that have disrupted global oil supplies.
According to Iranian state media and semi official outlets, Tehran’s response focused on securing a comprehensive ceasefire on all fronts, including Lebanon, where US ally Israel is battling Iran backed Hezbollah militants. The proposal reportedly demanded an end to the US naval blockade in the Gulf, guarantees against further attacks, compensation for war damages and the lifting of sanctions and restrictions on Iranian oil exports.
While full details of Washington’s original peace plan have not been made public, US officials had signalled that any agreement would need to address Iran’s nuclear programme and regional activities in a way that justifies Trump’s earlier withdrawal from the 2015 nuclear deal. Analysts say Tehran’s emphasis on sanctions relief and sovereignty over the Strait of Hormuz, without major nuclear concessions, fell short of US expectations.
Oil prices jumped by about four dollars per barrel after Trump’s rejection, as markets reacted to the increased risk that the conflict could drag on without a diplomatic breakthrough. Shipping and insurance costs for tankers using the Strait of Hormuz have also risen amid fears of further attacks in the strategic waterway, through which a significant share of the world’s seaborne oil passes.
Despite the setback, diplomats say back channel contacts involving regional powers and China are continuing, with some mediators urging both Washington and Tehran to narrow their demands. For now, however, Trump’s public dismissal of Iran’s reply suggests that any ceasefire or broader peace deal remains distant, even as limited strikes continue on both sides.
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