US President Donald Trump described Iran's proposed conditions for ending the Middle East war as "totally unacceptable ," raising the possibility of renewed conflict and causing a sharp rise in oil prices on Asian markets Monday morning.
On Sunday, Iran responded to Washington's latest peace proposal and warned that it would not hesitate to retaliate against any new US strike or allow the presence of new foreign warships in the Strait of Hormuz.
Trump made it clear in a message posted on his Truth Social platform that he would reject Tehran's counter-proposal, although he did not provide details on its content.
"I just read the response from the so-called 'representatives' of Iran. I don't like it — TOTALLY UNACCEPTABLE!" Trump said.
This impasse destabilized global energy markets, with the international benchmark price of Brent rising 4.65% to $99.95 a barrel in Monday morning Asian trading.
The US benchmark West Texas Intermediate (WTI) oil contract also jumped a little over 4% to reach $105.5 a barrel, as investors prepared for further disruptions to supply through the strait, where Tehran has imposed a partial blockade.
Israeli Prime Minister Benjamin Netanyahu – whose forces launched the war against Iran alongside the United States on February 28 – also insisted that the conflict would not end until Iran’s nuclear facilities were dismantled.
"This is not over, because there is still nuclear material – enriched uranium – that needs to be removed from Iran. There are still enrichment sites that need to be dismantled," Netanyahu told CBS's "60 Minutes . "
Tehran has publicly maintained a line of defiance during diplomatic efforts to bring the warring parties back to the negotiating table.
"We will never bow down to the enemy, and if we talk about dialogue or negotiation, that does not mean capitulation or retreat ," Iranian President Masoud Pezeshkian posted on X on Sunday.
According to the public broadcaster IRIB, Tehran's response to the American plan, transmitted to Pakistani mediators, emphasizes the end of the war "on all fronts, particularly in Lebanon" — where Israel continues its fight against the Iranian-backed Hezbollah — as well as the "guarantee of maritime security".
She provided few further details, although the US proposal apparently focused on extending the truce in the Gulf to allow talks on a settlement of the conflict and on Iran's disputed nuclear program.
Trump is expected to press Chinese President Xi Jinping – a major buyer of Iranian oil – on the Iranian issue during his visit to Beijing on Thursday, according to a senior US official.
"Decisive response"
The Wall Street Journal, citing sources close to the matter, indicated that Iran, in its counter-proposal, planned to dilute some of its highly enriched uranium, with the remainder to be transferred to a third country.
Iran had demanded guarantees that the transferred uranium would be returned if negotiations failed or if Washington abandoned the agreement, sources said.
The lack of a clear path to a resolution has focused concerns on the Strait of Hormuz, where Iran is restricting maritime traffic and implementing a payment mechanism to collect passage fees from ships that cross it.
US officials stressed that it would be "unacceptable" for Tehran to control this international waterway, through which a fifth of the world's oil passes.
The US Navy is also blockading Iranian ports, sometimes immobilizing or diverting ships going to or from them.
Britain and France are sending ships to the region and leading efforts to create an international coalition to secure the strait once a peace agreement has been reached.
The two countries will also host a multinational meeting of defense ministers from more than 40 countries on Tuesday to discuss military plans to restore trade flows across the strait.
But French President Emmanuel Macron insisted that his country had "never considered" a naval deployment in Hormuz , but rather a security mission "coordinated with Iran" , after Tehran warned that the two countries would expose themselves to a "decisive and immediate response" if their ships were deployed in the strait.
End of the detention"
Just when the diplomatic momentum seemed to be losing steam, new drone attacks in the Gulf on Sunday shook the ceasefire.
The United Arab Emirates said their air defenses intercepted a drone attack launched from Iran, while Kuwait reported the presence of "hostile drones" in its airspace.
Qatar's Ministry of Defence also indicated that a cargo ship arriving in its waters from Abu Dhabi had been hit by a drone.
In a message posted on social media on Sunday, the spokesman for the Iranian Parliament's National Security Committee warned Washington: "Our restraint ends as of today."
"Any attack against our ships will trigger a strong and decisive Iranian response against American ships and bases ," said Ebrahim Rezaei.
