Iran's proposal to end war with the US and reopen the Strait of Hormuz was legitimate and generous, Foreign Ministry Spokesperson Esmaeil Baghaei said on Monday, adding that the US continues to uphold unreasonable and one-sided demands.
"Our demand is legitimate: demanding an end to the war, lifting the (U.S.) blockade and piracy, and releasing Iranian assets that have been unjustly frozen in banks due to US pressure," Baghaei said.
"Safe passage through the Strait of Hormuz and establishing security in the region and Lebanon were other demands of Iran, which are considered a generous and responsible offer for regional security."
President Donald Trump's swift rejection of Iran's response to a US peace proposal sent oil prices surging on Monday amid concerns the 10-week-old conflict will drag on, keeping shipping through the Strait of Hormuz paralysed.
Days after the US floated an offer in the hopes of re-opening negotiations, Iran on Sunday released a response focused on ending the war on all fronts, especially Lebanon, where US ally Israel is fighting Iran-backed Hezbollah militants.
Tehran also included a demand for compensation for war damage and emphasised Iranian sovereignty over the Strait of Hormuz, Iranian state TV said.
It also called on the US to end its naval blockade, guarantee no further attacks, lift sanctions and end a US ban on Iranian oil sales, the semi-official Tasnim news agency said.
Within hours, Trump dismissed Iran's proposal with a post on social media.
"I don't like it — TOTALLY UNACCEPTABLE," Trump wrote on Truth Social, without giving further detail.
The US had proposed an end to fighting before starting talks on more contentious issues, including Iran's nuclear programme.
Oil prices jumped by more than 3.5% on Monday on news of the continued deadlock that leaves the Strait of Hormuz largely closed. Before the war began on February 28, the narrow waterway carried one-fifth of the world's oil and liquefied natural gas flows, and has emerged as one of the central pressure points in the war.