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Donald Trump rejects Iran’s response to ceasefire proposal, deepening Gulf war deadlock

President Donald Trump. LUDOVIC MARIN / POOL/SPA

President Donald Trump has rejected Iran’s latest written response to a U.S.-backed ceasefire proposal to end the war in and around the Persian Gulf, calling Tehran’s counteroffer “TOTALLY UNACCEPTABLE!” and warning that Washington is prepared to resume large‑scale airstrikes if diplomacy fails. The move, delivered in a blunt post on social media, leaves efforts to secure a broader regional truce and reopen the Strait of Hormuz at an impasse, with oil markets on edge and Iran’s leadership signaling it will not bow to what it calls Trump’s “excessive demands.”

President Donald Trump. LUDOVIC MARIN / POOL/SPA

Trump’s blunt rejection and a stalled peace track

Donald Trump’s dismissal of Iran’s multipage reply came within hours of Tehran delivering its response to Pakistani mediators, who have been shuttling between the sides in an effort to secure a ceasefire framework.

In a post on his social media platform, Trump wrote that he had read Iran’s response from its “so‑called ‘Representatives’” and added: “I don’t like it — TOTALLY UNACCEPTABLE!” according to accounts carried by U.S. and regional outlets. Earlier on Sunday, he accused Iran of “playing games with the United States, and the rest of the World … for almost 50 years,” adding: “They will be laughing no longer!”

The White House has not released the full text of Iran’s response, and Trump’s post did not detail which elements he found objectionable. However, U.S. officials and media briefed by negotiators say the reply leaves Washington’s central demand unresolved: advance commitments on the future of Iran’s nuclear program and its stockpile of highly enriched uranium.

What Iran is demanding

Iranian state media and semi‑official outlets have outlined a series of far‑reaching demands that go well beyond a narrow ceasefire.

According to Iran’s IRIB broadcaster and Tasnim news agency, Tehran’s written response:

  • Insists on lifting U.S. sanctions, including those targeting Iranian oil exports and financial transactions, as part of any agreement.
  • Calls for unfreezing and returning confiscated Iranian assets, held in foreign banks under U.S. and allied restrictions.
  • Demands an end to what it describes as the U.S. “blockade” of Iranian ports, tied to maritime inspections and interdictions in and around the Strait of Hormuz.
  • Seeks guarantees against renewed U.S. attacks, including potential strikes on Iran’s energy infrastructure and nuclear facilities.

In some accounts, Iranian state television also frames the U.S. plan as tantamount to “capitulation,” saying that accepting Washington’s latest offer would amount to surrendering to Trump’s “excessive demands.”

Iranian officials maintain that their position remains consistent: they say they are ready to extend and formalize the current ceasefire in exchange for a reciprocal reopening of the Strait of Hormuz and a negotiations track “focused exclusively on ending hostilities in the region.”

The U.S. proposal: ceasefire, Hormuz, and nuclear rollback

The latest American proposal, as described by Reuters, Fox and U.S. regional outlets, aims to bundle several issues into a staged deal.

Key elements include:

  • A comprehensive ceasefire covering U.S. and allied forces and Iranian‑aligned groups across multiple fronts, including attacks on shipping and clashes involving Israel and Hezbollah in Lebanon.
  • A phased plan to reopen the Strait of Hormuz, where Iran has imposed de facto restrictions and threatened closure since the outbreak of hostilities, disrupting global oil and shipping routes.
  • Steps to roll back Iran’s nuclear program, including halting further enrichment beyond civilian levels and agreeing to limits on its stockpile of highly enriched uranium, coupled with international inspections.

Washington has not publicly embraced Iran’s broader demands on sanctions and reparations. Instead, officials say the priority is to stop attacks, reopen the strait and prevent further nuclear escalation, with economic issues to be addressed in later phases if trust can be rebuilt.

U.S. Ambassador to the United Nations Mike Waltz told ABC News that Trump is giving diplomacy “every chance we possibly can before reverting to hostilities,” while also warning that the window for talks is not unlimited.

Tehran’s hard line and Khamenei’s directives

On the Iranian side, signals point toward a leadership unwilling to risk appearing weak amid war.

State media report that Iran’s new supreme leader, Mojtaba Khamenei, who has made few public appearances since the conflict began, recently issued “new and decisive directives for the continuation of operations and the powerful confrontation with the enemies.” The statements, carried without detail, were delivered after a meeting with the commander of Iran’s joint military command.

Iranian officials quoted by Tasnim suggest that if Trump is unhappy with Tehran’s response, “that is naturally better,” interpreting U.S. dissatisfaction as proof that Iran has not crossed its own red lines.

At the same time, IRNA, the official news agency, stresses that the “current phase of negotiations is focused exclusively on the cessation of hostilities in the region,” implying that Iran sees its nuclear program and sanctions relief as part of a broader bargaining package rather than concessions to be granted up front.

Regional and market fallout

The stalemate carries immediate consequences for the region and global markets.

Reuters reports that oil prices jumped on Monday as traders digested Trump’s rejection and Iran’s insistence on sweeping demands, with crude benchmarks rising on fears that the closure or partial disruption of the Strait of Hormuz will persist. The narrow waterway handles a significant portion of the world’s seaborne oil exports, and any prolonged blockage threatens to push up shipping insurance costs and energy prices worldwide.

Commercial shipping firms continue to reroute or delay tankers amid reports of intermittent attacks and Iranian inspections, adding to logistical bottlenecks. U.S. partners in the Gulf have urged both Washington and Tehran to avoid moves that might trigger a fresh cycle of strikes and counter‑strikes, but so far, those calls have not produced a breakthrough.

In the United States, the deadlock is feeding a political debate over Trump’s Iran strategy. Republican Senator Lindsey Graham said it may be time for Washington to “consider changing course,” citing “constant attacks on international shipping, persistent attacks on our Middle Eastern allies and now a totally unacceptable response to America’s diplomatic proposal.”

Escalation risks: airstrikes and nuclear shadow

Trump has repeatedly signaled that if negotiations fail, the U.S. is prepared to resume large‑scale bombing of Iranian targets, including energy infrastructure and other “key economic assets.”

Any renewed air campaign, U.S. officials and analysts say, would likely unfold in phases: first targeting Iran’s ability to project force through proxies and missile units across the region, then expanding, if ordered, to more sensitive sites that could carry higher risk of a broader war.

Iran, for its part, continues to advance its nuclear program, with U.S. officials warning that the country has enriched uranium beyond levels seen before the current conflict. While Tehran insists its program is peaceful, Western governments view it as leverage in the negotiations, and a potential flashpoint if diplomacy collapses.

The ceasefire proposal Washington is pushing seeks not only to quiet guns in the Gulf but also to reverse or cap Iran’s nuclear gains, a linkage that has complicated talks but is seen in Washington as essential to any durable settlement.

A diplomatic path still open, but narrowing

Despite the harsh rhetoric, both sides continue to communicate through intermediaries, and U.S. officials stress that the diplomatic track has not been formally closed. Pakistani envoys are expected to carry clarifying questions and possible tweaks back to Tehran in the coming days, though there is little sign of an imminent breakthrough.

Iranian media emphasize that Tehran is prepared to continue the ceasefire “in exchange for the reciprocal opening of the Strait of Hormuz and advancing negotiations focused on ending the war in the region,” but there is no indication that it is ready to pre‑emptively meet U.S. nuclear conditions or abandon calls for sanctions relief.

For now, Trump’s rejection of Iran’s response has underscored the distance between the two capitals on both substance and sequencing: Washington wants verifiable steps on nuclear and maritime issues as part of an initial deal, while Tehran is seeking a package that includes economic relief and security guarantees upfront.

As shipping delays mount, oil prices firm and regional militaries stay on high alert, diplomats warn that time is working against a negotiated outcome. The longer the current limbo persists, they say, the greater the risk that a miscalculation at sea or on a regional front line could pull the U.S. and Iran back from the negotiating table and into a confrontation that neither side says it wants, but both insist they are ready to fight.

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