US President Donald Trump on Sunday rejected Iran’s response to a US peace proposal as “totally unacceptable,” dealing a fresh blow to efforts to end the conflict and raising the risk of renewed instability in the Gulf, where shipping through the Strait of Hormuz remains severely disrupted.
The dismissal underscored how far apart Washington and Tehran remain despite weeks of indirect diplomacy aimed at ending the 10-week-old war. Oil prices rose $3 a barrel on Monday as traders assessed the possibility that the impasse could prolong disruptions to one of the world’s most critical energy chokepoints.
Iran submitted its response through Pakistani mediators, according to officials familiar with the talks. Tehran’s counter-proposal focused on ending hostilities across the region, particularly in Lebanon, and called for guarantees on freedom of navigation in the Strait of Hormuz.
Iranian state media said Tehran also demanded compensation for war damage, formal recognition of its sovereignty over the strategic waterway, an end to the U.S. naval blockade, lifting of sanctions, and the removal of restrictions on Iranian oil exports.
Washington’s original proposal reportedly sought an immediate end to fighting, followed by negotiations on more contentious issues including Iran’s nuclear programme and regional security concerns.
According to reports, Iran indicated it might be willing to dilute part of its stockpile of highly enriched uranium and transfer the remainder to a third country, though Tehran stopped short of accepting broader U.S. demands to curb its nuclear activities.
Trump, in a lengthy post on his Truth Social platform, accused Iran of “playing games” and dismissed the response outright, reiterating his long-held criticism of previous U.S. administrations’ engagement with Tehran".
"Iran has been playing games with the United States, and the rest of the World, for 47 years (DELAY, DELAY, DELAY!)"
“For 47 years the Iranians have been ‘tapping’ us along,” Trump wrote, adding that “they will be laughing no longer.”
The rejection casts new doubt over diplomatic efforts that had shown tentative signs of progress after a month-old ceasefire reduced direct hostilities between the United States and Iran.
Despite the relative calm, security concerns remain acute. Hostile drones were detected over several Gulf countries on Sunday, highlighting the fragility of the truce and the continuing threat to regional energy infrastructure and shipping.
Iran’s military has also warned that countries helping to enforce sanctions or participating in maritime operations in the Strait of Hormuz could face repercussions.
