President Trump labeled Iran's latest cease‑fire proposal a "piece of garbage" and warned the truce is on "life support" as gasoline in the United States tops $4.55 per gallon. Tehran’s demands — U.S. war reparations, sovereignty over the Strait of Hormuz, and an end to sanctions — clash with Washington’s red lines, prompting a diplomatic stalemate.

The oil market reacted sharply; Brent hovered near $85 a barrel while Saudi Aramco reported a 25% jump in first‑quarter profit. High energy costs have already pushed India’s prime minister, Narendra Modi, to urge citizens to curb fuel use, a move that underscores the global fiscal strain from the conflict.

Talks between Trump and China’s Xi Jinping later this week aim to break the impasse, but any concession on sanctions would likely require Tehran to curb its nuclear ambitions. With small‑scale attacks persisting in the Gulf and the United Arab Emirates reporting fresh drone strikes, the cease‑fire remains fragile and markets stay on edge.