Trump dismissed Iran's response to the US peace proposal as "TOTALLY UNACCEPTABLE" yesterday, as the two nations maintain a fragile ceasefire with no end in sight to their two-month conflict. The US president criticized Iran's submission without revealing specifics, even as diplomatic efforts continue amid heightened tensions in the Middle East.

Iran's proposal emphasized the necessity of immediately ending hostilities and guaranteeing no further aggression against the country. Tehran also demanded lifting of US sanctions, an end to fighting on all fronts—including Israeli strikes in Lebanon—and asserted Iran's management of the Strait of Hormuz, a critical waterway for global energy supplies.

The geopolitical tensions are already impacting financial markets. Pimco warned that Federal Reserve rate cuts would be "counter-productive" given the surge in energy prices. The $2.3 trillion bond giant noted the new challenges facing US policymakers as they contend with the fallout of Trump's war in Iran, suggesting the central bank may even need to consider lifting borrowing costs amid market uncertainty.