US President Donald Trump has rejected Iran’s latest peace proposal as “totally unacceptable,” escalating tensions in the Middle East and raising fears of renewed conflict. Tehran responded defiantly, warning it would retaliate against any new US strikes and refusing to allow foreign warships into the Strait of Hormuz, while Israel and Western powers pressed for tougher measures on Iran’s nuclear program.

The rejection of Iran’s counterproposal marks a sharp setback after weeks of negotiations aimed at ending the war that began on 28 February. Trump, under mounting domestic pressure to conclude the conflict, declared that Iran was “militarily defeated” and insisted its nuclear programme had been contained. He offered no details of Tehran’s proposal but dismissed it outright in a post on Truth Social, calling it “TOTALLY UNACCEPTABLE.”

According to reports, Iran had offered to dilute part of its highly enriched uranium and transfer the remainder to a third country, with guarantees that it would be returned if Washington abandoned any eventual deal.

This response, delivered through Pakistan, also demanded war reparations, full sovereignty over the Strait of Hormuz, an end to sanctions, and the release of frozen assets. Trump ignored these details, instead emphasising US surveillance capabilities. In an interview, he claimed that Space Force was monitoring Iran’s uranium stockpile and could “blow them up” if anyone approached the sites, boasting that American systems could even identify individuals by name and badge number.

Iran’s leadership reacted with defiance. President Masoud Pezeshkian stated that dialogue did not mean surrender, while Supreme Leader Mojtaba Khamenei reportedly issued directives for continued military operations.

Iranian state television reiterated that Tehran would not tolerate foreign naval deployments in Hormuz, insisting only Iran could secure the strait. Deputy Foreign Minister Kazem Gharibabadi warned Britain and France of “decisive and immediate response” if they attempted to send warships.

Israel remains uncompromising. Prime Minister Benjamin Netanyahu declared that the war was not over until Iran’s enriched uranium was removed and its nuclear facilities dismantled. He revealed that Trump had privately expressed a desire to “go in there” to eliminate Iran’s nuclear stockpile, underscoring the shared US-Israeli position.

The strategic Strait of Hormuz continues to be the focal point of the crisis. Iran’s blockade has driven global oil prices higher and disrupted financial markets. Tehran has imposed tolls on shipping, while the US Navy maintains a blockade of Iranian ports. Britain and France are preparing an international coalition to restore trade flows once a peace deal is reached, with a multinational defence ministers’ meeting scheduled this week.

However, French President Emmanuel Macron clarified that Paris envisaged only a security mission coordinated with Iran, not a unilateral naval deployment.

The stalemate has already rattled energy markets, with oil prices surging amid fears of prolonged disruption. The US faces growing discontent at home, where voters are burdened by rising fuel costs ahead of elections. Internationally, Washington has struggled to rally NATO allies to its side, with many refusing to commit forces without a comprehensive peace agreement.

The confrontation now hangs over Trump’s forthcoming summit with Chinese President Xi Jinping in Beijing, where the US hopes to leverage China’s influence over Tehran. Yet with both sides entrenched, prospects for a breakthrough remain uncertain.

The war has already lasted more than ten weeks, and the latest exchange suggests it may continue, with Iran vowing resistance and Washington determined to press its demands.

Agencies