President Donald Trump swiftly rejected Iran’s response to a U.S. peace proposal, according to Reuters, raising fears the 10-week-old conflict could drag on and further disrupt global shipping through the Strait of Hormuz.

Days after Washington floated a proposal aimed at reviving negotiations, Iran on Sunday issued a response centred on ending the war across multiple fronts, particularly in Lebanon, where U.S.-backed Israel is battling Iran-backed Hezbollah militants. Tehran also demanded compensation for war damage and reaffirmed Iranian sovereignty over the Strait of Hormuz, Iranian state television reported.

Iran further called on the United States to lift its naval blockade, guarantee no further attacks, remove sanctions and end restrictions on Iranian oil exports, according to the semi-official Tasnim news agency.

Within hours, Trump dismissed the proposal in a social media post.
“I don’t like it — TOTALLY UNACCEPTABLE,” Trump wrote on Truth Social, without elaborating.

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The U.S. proposal had sought a ceasefire before broader negotiations on contentious issues, including Iran’s nuclear programme. After Trump rejected Tehran’s demands, Iran on Monday defended its offer as “generous and responsible”.

“Our demand is legitimate: demanding an end to the war, lifting the (U.S.) blockade and piracy, and releasing Iranian assets that have been unjustly frozen in banks due to U.S. pressure,” Foreign Ministry spokesperson Esmaeil Baghaei said.

“Safe passage through the Strait of Hormuz and establishing security in the region and Lebanon were other demands of Iran, which are considered a generous and responsible offer for regional security.”

Oil prices rose more than 3.5% on Monday amid concerns the diplomatic deadlock would keep the Strait of Hormuz largely paralysed.