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US-Iran Ceasefire on 'Life Support' as Trump Rejects Tehran's Peace Proposal

President Trump dismisses Iran's response to the latest ceasefire proposal as unbelievably weak, sending oil prices soaring and raising fears of renewed hostilities in the Gulf.

The fragile ceasefire between the United States and Iran is hanging by a thread. President Donald Trump has rejected Tehran’s response to the latest U.S. peace proposal, calling it “unbelievably weak” and placing the ceasefire on “massive life support.”

A Proposal Trump Couldn’t Finish Reading

Speaking at the White House on Monday, Trump didn’t hold back his frustration. “I would call it the weakest right now, after reading a piece of garbage. I didn’t even finish reading it,” he told reporters. The President described the Iranian response as “badly written” and “badly delivered,” going so far as to call it “a stupid proposal” from people who “have no clue as to the danger they’re in.”

The rejection marks another setback in efforts to end more than two months of conflict that has severely disrupted the Strait of Hormuz—a vital waterway through which roughly a fifth of the global oil supply passes.

What Iran Wants

According to Iran’s semi-official Tasnim news agency, Tehran’s response included several key demands:

  • A permanent end to the war on all fronts
  • Compensation for war damages
  • An end to the U.S. naval blockade
  • Lifting of sanctions on Iran
  • Termination of the U.S. ban on Iranian oil sales
  • Maintenance of control over the Strait of Hormuz

Iranian Foreign Ministry spokesperson Esmail Baghaei defended the proposal as “reasonable and generous,” accusing the U.S. of continuing to insist on “unreasonable demands.” He emphasized that Iran’s demands are legitimate: an end to the war, lifting the U.S. blockade, and releasing Iranian assets frozen in banks due to U.S. pressure.

Oil Prices React

The geopolitical uncertainty has sent energy markets reeling. Brent crude rose 2.7% on Monday to $104.03 a barrel, compounding concerns about a growing global energy crisis. Trump hinted at a potential response, saying he may suspend the federal gas tax amid increasing pump prices, arguing that once the Iran war ends, prices will drop “like a rock.”

Tensions Simmer in the Gulf

Meanwhile, suspected Iranian attacks threaten to reignite full-blown hostilities. The United Arab Emirates reported intercepting two drones launched from Iran on Sunday. Qatar said a cargo ship from Abu Dhabi was hit by a drone near its coast. Kuwait announced it repelled unspecified “hostile drones.”

Analysts describe the current situation as a deadlock—where the hot war has paused but underlying tensions remain, capable of bubbling into renewed hostility at any moment.

The Nuclear Question

At the heart of the impasse lies the dispute over Iran’s nuclear capabilities. Trump claimed Iranian officials told the White House they intend to provide “the nuclear dust,” though he noted the targeted sites were so severely damaged that only the U.S. and China could extract it.

The ceasefire, initially announced in April and later extended, now faces its toughest test yet. With both sides dug in and regional tensions simmering, the path to lasting peace remains unclear.