Washington/Dubai: The fragile ceasefire efforts between the United States and Iran appeared to face a major setback on Monday after US President Donald Trump sharply rejected Tehran’s latest response to a US-backed peace proposal, raising fears of renewed escalation in the 10-week-long Middle East conflict. Calling Iran’s reply “totally unacceptable,” Trump said the ceasefire was now “on life support,” signalling growing tensions after hopes emerged last week for a diplomatic breakthrough. Speaking to reporters, Trump said, “I would call it the weakest right now, after reading that piece of garbage they sent us. I didn’t even finish reading it.”

Iran Demands End to War, Sanctions Relief

The latest diplomatic exchange came days after Washington proposed a framework aimed at halting hostilities before reopening broader negotiations on contentious issues, particularly Iran’s nuclear programme.

In its official response released on Sunday, Tehran insisted that any ceasefire agreement must include:

• An immediate end to military operations across the region
• Lifting of US sanctions and naval restrictions
• Compensation for war-related damages
• Release of frozen Iranian financial assets
• Guarantees against future attacks
• Restoration of unrestricted Iranian oil exports

Iran also reiterated its sovereignty over the strategically crucial Strait of Hormuz, through which a significant portion of the world’s oil supply passes.

Tehran Defends “Responsible Offer”

Iranian Foreign Ministry spokesperson Esmaeil Baghaei defended Tehran’s demands on Monday, describing them as “legitimate” and necessary for regional stability. “Our demand is legitimate: demanding an end to the war, lifting the US blockade and piracy, and releasing Iranian assets that have been unjustly frozen in banks due to US pressure,” Baghaei said. He added that ensuring safe passage through the Strait of Hormuz and improving security in the Middle East and Lebanon were part of what Iran considers a “generous and responsible offer.”

Rising Concerns Over Middle East Stability

The ongoing conflict has already resulted in thousands of casualties and severe disruptions to global energy supply chains. The war has also intensified tensions in Lebanon, where Hezbollah — backed by Iran — continues clashes with Israel. Analysts warn that failure to revive the ceasefire could trigger wider instability across the Gulf region, potentially affecting international oil markets and maritime trade routes.

US-Iran Relations at Critical Juncture

The latest exchange underscores the widening gap between Washington and Tehran over the terms of peace. While the US has prioritised an immediate cessation of hostilities before broader negotiations, Iran is demanding comprehensive guarantees and economic concessions before agreeing to any lasting truce. With diplomatic channels under increasing strain, global attention is now focused on whether fresh mediation efforts can prevent the conflict from escalating further.