Hopes for a peace deal on Iran faded on Tuesday after Donald Trump said a ceasefire with Iran was "on life support" as Tehran rejected a U.S. proposal to end the conflict and stuck to a list of demands the U.S. president described as "garbage".
Iran has called for an end to the war on all fronts, including in Lebanon, where U.S. ally Israel is fighting Iran-backed Hezbollah. Tehran also emphasised its sovereignty over the Strait of Hormuz, demanded compensation for war damage, and an end to the U.S. naval blockade, among other conditions.
Trump said Iran's response threatened the status of a ceasefire that began on 7 April.
"I would call it the weakest right now, after reading that piece of garbage they sent us. I didn't even finish reading it," Trump, who has repeatedly threatened to end the ceasefire, told reporters.
The U.S. had proposed an end to fighting before starting talks on more contentious issues, including Iran's nuclear programme.
Brent crude oil futures extended gains in early Asian trade on Tuesday, climbing above $104.50 a barrel, as the deadlock left the Strait of Hormuz largely closed. Before the war began on 28 February, the narrow waterway carried one-fifth of the world's oil and liquefied natural gas shipments, and has since become a central pressure point in the conflict.
Disruption caused by the near-closure of the strait has forced oil producers to cut exports, and OPEC oil output dropped further in April to the lowest in more than two decades, a Reuters survey showed on Monday.
The United States on 11 May imposed new sanctions on individuals and companies it said were helping Iran ship oil to China, part of efforts to cut off funding for Tehran’s military and nuclear programmes, while also warning banks about attempts to evade existing curbs.
Trump is expected to arrive in Beijing on Wednesday, where Iran is set to be among the topics discussed with Chinese President Xi Jinping.
Traffic through the Strait of Hormuz is at a trickle compared with before the war. Shipping data on Kpler and LSEG showed that three tankers laden with crude exited the waterway last week, with trackers switched off to avoid an Iranian attack.
A second Qatari LNG tanker was attempting to transit the strait, the data showed, days after the first such cargo crossed under an arrangement involving Iran and Pakistan.
In the U.S., surveys show the war is unpopular with U.S. voters who are paying more for fuel less than six months before nationwide elections that will determine whether Trump's Republican Party retains control of Congress.
Two out of three Americans, including one in three Republicans and almost all Democrats, think Trump has not clearly explained why the country has gone to war, according to a Reuters/Ipsos poll completed on Monday.
Washington has also struggled to build international support, with NATO allies refusing to send ships to reopen the waterway without a full peace deal and an internationally mandated mission.
In separate statements on Monday, the State Department said U.S. Secretary of State Marco Rubio held separate calls with his Australian and British counterparts to discuss "ongoing efforts to restore freedom of navigation in the Strait of Hormuz." It did not elaborate.
Hakan Fidan, the Foreign Minister of Türkiye, which has been liaising closely with the U.S., Iran and mediator Pakistan since the start of the war, will hold talks in Qatar on Tuesday on the conflict and on ensuring navigational safety in the strait, a Turkish diplomatic source said.
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Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said on Monday that the U.S. would bear direct responsibility for any escalation in West Asia after Iran and Israel resumed strikes for the first time since the April ceasefire.
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Azerbaijan's Foreign Ministry has confirmed the number of casualties its citizens suffered as a result of the 5 June drone attacks on the cargo ships Natra and Zircon in the Sea of Azov. In a statement, it said four Azerbaijani citizens were killed and four others were injured.
Barcelona is preparing to mark a historic milestone in the legacy of architect Antoni Gaudí as Pope Leo XIV visits the city this week to inaugurate the Tower of Jesus Christ at the Sagrada Família basilica, almost exactly 100 years after the visionary architect’s death.
Iran and Israel have halted strikes on each other, but Tehran has warned it will recommence attacks if Israel continues military action in Lebanon. U.S. President Donald Trump and Lebanese President Joseph Aoun have meanwhile made pleas for peace.
Sirens rang out across multiple areas of Israel on Sunday night after missiles were launched from Iran towards the country, the Israeli military said. Earlier, Tehran's top negotiator in talks with the U.S. threatened to target Israeli and American assets in the region, after Israel struck Beirut.
U.S. President Donald Trump acknowledged calling Israeli Prime Minister Benjamin Netanyahu “crazy” during a phone exchange over fighting in Lebanon. The call came as the U.S. was attempting to broker an end to hostilities involving Iran.
Iran’s Revolutionary Guards (IRGC) said on Monday they targeted the source of an attack on a telecom facility on Sirik Island near the strategic Strait of Hormuz, Tasnim News Agency reported.
Iran really wanted to make a deal with the U.S. and that it would be a good one for Washington and its allies, President Donald Trump said on Monday.
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