US President Donald Trump rejected Iran’s counter-proposal to end the Middle East war on Sunday, calling Tehran’s terms “totally unacceptable” and sending oil prices sharply higher in early Asia trade on Monday.
Brent crude rose 4.65 percent to $99.95 a barrel, while US benchmark West Texas Intermediate surged just over 4 percent to $105.50.
Iran responded by warning it would retaliate against any new US strikes and block foreign warships from the Strait of Hormuz.
Why did Trump reject Iran’s peace proposal?
Trump gave no details on the contents of Tehran’s counter-proposal, but made his position clear in a post on Truth Social. “I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it — TOTALLY UNACCEPTABLE!” he wrote.
The rejection came after weeks of back-channel diplomacy brokered through Pakistani mediators, leaving no clear path to resuming negotiations.
According to state broadcaster IRIB, Iran’s response focused on ending the war “on all fronts, especially Lebanon,” and on securing shipping routes through the Strait of Hormuz.
The Wall Street Journal, citing people familiar with the matter, reported that Iran also proposed diluting some of its highly enriched uranium and transferring the remainder to a third country, with guarantees the material would be returned if talks collapsed or Washington abandoned any agreement.
What did Iran propose and what are its conditions for ending the war?
Iran’s counter-proposal, passed to Washington through Pakistan, addressed two core issues: a comprehensive ceasefire covering Lebanon, where Israel has continued fighting Iran-backed Hezbollah, and control of the Strait of Hormuz.
Tehran has imposed a partial blockade on the strait and set up a toll mechanism for crossing ships. US officials have called Iranian control of the waterway “unacceptable,” given that it carries roughly a fifth of the world’s oil supply.
Iranian President Masoud Pezeshkian posted a firm public response on X. “We will never bow down to the enemy, and if there is talk of dialogue or negotiation, it does not mean surrender or retreat,” he wrote.
The Iranian parliament’s national security commission spokesman, Ebrahim Rezaei, went further, warning Washington directly: “Our restraint is over as of today. Any attack on our vessels will trigger a strong and decisive Iranian response against American ships and bases.”
What is Netanyahu’s position on ending the war with Iran?
Israeli Prime Minister Benjamin Netanyahu, whose forces launched the war alongside the United States on 28 February, said the conflict cannot end until Iran’s nuclear infrastructure is dismantled. “It’s not over, because there’s still nuclear material — enriched uranium — that has to be taken out of Iran. There’s still enrichment sites that have to be dismantled,” he told CBS’s 60 Minutes on Sunday.
Trump is expected to raise the Iran issue with Chinese President Xi Jinping when he visits Beijing on Thursday, given China’s position as a major buyer of Iranian oil.
What is happening at the Strait of Hormuz and who is getting involved?
The US Navy is blockading Iran’s ports, at times disabling or diverting ships heading to and from them. Britain and France are sending vessels to the region and are leading efforts to assemble an international coalition to secure the strait after any peace deal. The two countries will host a multinational meeting of defense ministers from more than 40 nations on Tuesday to discuss plans for restoring trade flows through the waterway.
Iran warned both countries they would face “a decisive and immediate response” if their ships were deployed to the strait. French President Emmanuel Macron subsequently insisted France had “never envisaged” a naval deployment, but rather a security mission “coordinated with Iran.”
What drone attacks have threatened the Gulf ceasefire?
Fresh drone strikes on Sunday rattled the fragile ceasefire across the Gulf. The United Arab Emirates said its air defenses intercepted a drone launched from Iran. Kuwait reported “hostile drones” in its airspace.
Qatar’s defense ministry confirmed a freighter arriving from Abu Dhabi was struck by a drone in its waters. No group immediately claimed responsibility for the attacks, though Iran’s Fars news agency reported the vessel near Qatar was sailing under a US flag.
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