Donald Trump denounced Iran’s reply to the U.S. peace proposal as “unacceptable,” escalating tensions despite a fragile ceasefire. Iran submitted its demands via Pakistan, rejecting key U.S. terms without specifics. Trump’s blunt Truth Social post triggered a 3% surge in Brent crude to $104.35, signaling market fears of renewed conflict. Analysts linked his remarks to potential disruptions in the Strait of Hormuz, a critical oil chokepoint, and warned of heightened volatility if talks collapse.

Iran’s response, mediated by Pakistan, demanded an end to the war “on all fronts,” including halting Israeli strikes in Lebanon, lifting U.S. sanctions, and easing blockades on its southern ports. It also sought a 30-day suspension of oil sanctions to release frozen assets. Tehran framed its terms as “reasonable” but avoided nuclear negotiations, citing past conflicts during such talks. A diplomat hinted at future discussions on Iran’s nuclear program after a “confidence-building” period, though the U.S. insists on a 20-year enrichment ban—a demand Iran rejects.

The standoff risks prolonging the two-month war, with traders monitoring oil prices and Middle East conflict dynamics. U.S. officials warned that stalled talks could revive open hostilities, while Iran’s foreign ministry dismissed Trump’s rhetoric as inflammatory. The Strait of Hormuz remains a focal point, as LNG shipments to Pakistan are delayed amid maritime tensions.

Trump’s broader attack on Iran’s 2015 nuclear deal and accusations of “wiping out” protesters underscores his hardline stance. Israel’s Prime Minister Benjamin Netanyahu echoed concerns, stating Iran has not relinquished materials usable for weapons. With no clear path to compromise, the conflict’s economic and geopolitical fallout hangs in the balance.