WASHINGTON: US President Donald Trump on Sunday called Iran’s terms for ending the Middle East war “totally unacceptable,” increasing fears of renewed conflict after weeks of ongoing negotiations.
Iran had earlier responded to Washington’s latest peace proposal, warning that it would retaliate against any new US strikes and would not allow additional foreign warships into the Strait of Hormuz.
Trump did not provide specific details of Tehran’s counterproposal but made his position clear in a brief post on Truth Social.
“I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it — TOTALLY UNACCEPTABLE!” he wrote.
The exchange came as Israeli Prime Minister Benjamin Netanyahu, whose forces—alongside the US military—launched the war on Iran on February 28, insisted that the conflict would not end until Iran’s enriched uranium is removed and its nuclear facilities are dismantled.
Despite tensions, Tehran continued to project a defiant stance even amid ongoing diplomatic channels.
“We will never bow down to the enemy, and if there is talk of dialogue or negotiation, it does not mean surrender or retreat,” Iranian President Masoud Pezeshkian said on Sunday on X.
According to Iran’s state broadcaster IRIB, Tehran’s response—delivered through Pakistani mediators—focuses on ending the war “on all fronts, especially Lebanon,” where Israel continues operations against Hezbollah, and on ensuring “shipping security.”
The proposal reportedly lacked detailed terms, while the US plan had aimed at extending a Gulf truce to allow broader negotiations on the conflict and Iran’s nuclear program.
The stalemate has unsettled global markets, with oil prices rising sharply. Brent crude increased 2.69% to $104.01 per barrel for July delivery at the start of the week.
Netanyahu, in a televised interview on CBS’s “60 Minutes,” said Iran’s enriched uranium must be removed before the war can end.
“It’s not over, because there’s still nuclear material — enriched uranium — that has to be taken out of Iran. There’s still enrichment sites that have to be dismantled,” he said.
He added that Donald Trump agreed on the issue, although Trump had recently said the US could remove the material “whenever we want” and that it was “very well surveilled.”
Trump is also expected to raise the Iran issue with Chinese President Xi Jinping during his upcoming visit to Beijing, according to a senior US administration official, as China remains a major buyer of Iranian oil.
Reports in The Wall Street Journal, citing sources familiar with the matter, said Iran had proposed diluting some highly enriched uranium and transferring the rest to a third country.
Through Pakistani mediation, Iran also reportedly requested guarantees that transferred uranium would be returned if talks fail or if Washington exits any agreement.
Trump did not refer to these details when rejecting Iran’s response.
Earlier in the conflict, Iran imposed restrictions in the Strait of Hormuz, sending oil prices higher and shaking global markets.
It later introduced a payment system to collect tolls from ships passing through the waterway. However, US officials have said it is unacceptable for Iran to control such a critical global shipping route.
The US Navy has meanwhile continued operations near Iranian ports, including intercepting or diverting vessels heading to and from them.
Britain and France are leading efforts to build an international coalition to secure the Strait of Hormuz after any future peace deal, with naval deployments already underway in preparation.
Both countries are set to host a defence ministers’ meeting with representatives from more than 40 nations to plan the restoration of safe maritime trade through the strait.
However, Iran warned that any British or French naval deployment would trigger an immediate and decisive response.
“Only the Islamic Republic of Iran can establish security in this strait and it will not allow any country to interfere,” said Deputy Foreign Minister Kazem Gharibabadi on X.
French President Emmanuel Macron later said France had “never envisaged” deploying warships in Hormuz, but instead supported a coordinated security mission involving Iran.
Fresh tensions also emerged after drone incidents in the Gulf. The United Arab Emirates said its air defence systems intercepted two UAVs launched from Iran.
Kuwait also reported neutralising hostile drones in its airspace, while Qatar said a freighter arriving from Abu Dhabi was struck by a drone.
No group claimed responsibility, though Iran’s Fars news agency reported that the vessel hit near Qatar was a US-flagged ship.
In a statement on social media, Iranian parliament national security spokesperson Ebrahim Rezaei warned that restraint had ended.
“Our restraint is over as of today,” he said, adding that any attack on Iranian vessels would trigger a strong and decisive response against US ships and military bases.