US President Donald Trump rejected Iran’s latest proposal to end the months-long conflict, calling it “totally unacceptable”, as fears of a prolonged war sent global oil prices sharply higher and kept pressure on shipping through the Strait of Hormuz.
The Iranian response came days after Washington floated a proposal aimed at restarting negotiations and easing tensions in the region. Tehran’s counterproposal reportedly focused on ending hostilities across multiple fronts, particularly in Lebanon, where Israel continues military operations against Iran-backed Hezbollah militants.
Iran also demanded compensation for war damages, an end to the US naval blockade, guarantees against future attacks, lifting of sanctions and restoration of Iranian oil exports. Tehran further asserted its sovereignty over the Strait of Hormuz, one of the world’s most critical oil transit routes.
Reacting to the proposal, Trump wrote on Truth Social on Sunday: “I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it — TOTALLY UNACCEPTABLE!”
Speaking later to Axios, Trump said: “I don’t like their letter. It’s inappropriate. I don’t like their response.”
Earlier, Trump accused Tehran of “playing games” with Washington for decades. “They will be laughing no longer!” he added.
Oil prices jump amid Strait of Hormuz concerns
The continued diplomatic deadlock pushed oil prices up by nearly USD 3 per barrel on Monday amid concerns that disruptions in the Strait of Hormuz could continue.
Before the conflict erupted on February 28, the narrow waterway handled nearly one-fifth of global oil supplies. The prolonged tensions have triggered fuel shortages in several countries and heightened fears of a broader global energy crisis.
The United States has also struggled to gather wider international backing for military operations in the region. NATO allies have reportedly declined calls to deploy naval forces to reopen the Strait of Hormuz without a comprehensive peace agreement and an internationally mandated mission.
Trump discusses Iran with Netanyahu
Trump confirmed he had spoken with Israeli Prime Minister Benjamin Netanyahu on Sunday regarding Iran and regional security developments.
“It was a very nice call. We have a good relationship,” Trump said, while adding that the Iran negotiations are “my situation, not everybody else’s”.
Addressing whether military operations against Iran were over, Trump said in remarks aired Sunday: “They are defeated, but that doesn't mean they're done.”
Netanyahu also signalled that the conflict was not over, saying there was “more work to be done” regarding Iran’s uranium stockpile, enrichment facilities, proxy groups and ballistic missile programme.
“The best way to remove the enriched uranium would be through diplomacy,” Netanyahu said in an interview aired on CBS News’ “60 Minutes”, though he did not rule out the use of force.
Republican senator urges military option
Amid the stalled negotiations, Republican Senator Lindsey Graham urged Trump to consider military action against Iran.
“I appreciate President Trump’s earnest efforts to seek a diplomatic solution to change the behaviour of the Iranian terrorist regime,” Graham said in a post on X.
“However, between their constant attacks on international shipping, the persistent attacks on our Middle Eastern allies and now a totally unacceptable response to America’s diplomatic proposal, it is in my view, time to consider changing course,” he said.
“Project Freedom Plus sounds pretty good right about now,” Graham added, referring to the naval operation intended to escort ships through the Strait of Hormuz that was suspended shortly after launch.
Regional tensions continue despite ceasefire
Although the US, Israel and Iran agreed to pause attacks under a ceasefire announced on April 8, tensions across the region remain high.
Recent days have witnessed renewed flare-ups around the Strait of Hormuz. The United Arab Emirates said it intercepted two drones launched from Iran, while Qatar condemned a drone strike on a cargo ship travelling from Abu Dhabi through its waters. Kuwait also reported hostile drones entering its airspace.
Clashes have continued in southern Lebanon between Israeli forces and Hezbollah fighters despite a separate US-brokered ceasefire announced on April 16.
Iranian President Masoud Pezeshkian said Tehran would “never bow down to the enemy” and would “defend national interests with strength.”
Meanwhile, the US has continued insisting that Iran must commit to ending its uranium enrichment programme in exchange for sanctions relief and the release of frozen Iranian funds.
Trump is expected to arrive in Beijing on Wednesday, where Iran and the ongoing conflict are likely to feature prominently in discussions with Chinese President Xi Jinping.