On this image obtained from Iran’s ISNA information company and brought on Might 2, 2026, the Gambia-flagged tanker vessel Bili is pictured anchored within the Strait of Hormuz off Bandar Abbas in southern Iran. (Picture by Amirhossein KHORGOOEI / ISNA / AFP by way of Getty Pictures) /
Amirhossein Khorgooei | Afp | Getty Pictures
U.S. President Donald Trump rejected Iran’s counterproposal to finish the 10-week warfare within the Center East, calling it “completely unacceptable,” whereas Tehran vowed to “by no means bow,” prolonging a standoff that has choked the Strait of Hormuz and roiled international vitality markets.
“I’ve simply learn the response from Iran’s so-called “Representatives.” I do not prefer it — TOTALLY UNACCEPTABLE!” the president stated in a Fact Social put up on Sunday.
Iranian state media framed Tehran’s response as a rejection of the U.S. proposal, which it characterised as a requirement for “give up.” In its response to the most recent U.S. proposal, Tehran has insisted on warfare reparations, full sovereignty over the Strait of Hormuz, an finish to sanctions, and the discharge of frozen Iranian belongings.
Iranian President Masoud Pezeshkian struck a defiant tone as negotiations proceeded Sunday. “We are going to by no means bow our heads earlier than the enemy, and if discuss of dialogue or negotiation arises, it doesn’t imply give up or retreat,” he stated on X in Persian, translated by way of Grok.
Israeli Prime Minister Benjamin Netanyahu, in an interview with CBS Information’ “60 Minutes,” stated the warfare was not over as a result of there was “extra work to be accomplished.” Iran had neither surrendered its enriched uranium nor dismantled enrichment websites, and continues to assist regional proxies and advance its ballistic missile program, he stated.
Nuclear and Hormuz deadlock
The Wall Avenue Journal reported that Iran rejected U.S. demands concerning its nuclear program and stockpile of extremely enriched uranium. As an alternative, Tehran proposed separate negotiations and provided to dilute a few of its extremely enriched uranium and switch the remaining to a 3rd nation, with a provision that or not it’s returned if Washington exits any eventual deal, the Journal reported.
The U.S. desires assurances that Iran will finish its nuclear program as a part of any peace deal. Iran has reportedly agreed to droop enriching uranium, however for a shorter interval than the 20-year moratorium proposed by the U.S. Iran has rejected dismantling its nuclear amenities.
Tehran has additionally demanded that the U.S. finish its blockade of Iranian ports as a situation for it to open the Strait of Hormuz.
A Qatari LNG tanker crossed the strait on Sunday for the primary time because the warfare started, a passage that was reportedly authorised by Iran to construct confidence with Qatar and Pakistan, although the symbolic opening did little to ease broader market considerations.
“Oil has stayed extremely delicate to headlines, with markets caught between hopes of de-escalation and the danger that sporadic clashes preserve an energy-risk premium embedded in foreign exchange trade and charges,” stated Christopher Wong, forex strategist at OCBC Financial institution.
U.S. West Texas Intermediate futures with June supply superior 4.96% to $100.3 per barrel on Monday, whereas the worldwide benchmark Brent crude futures with July supply rose 4.92% to $105.76 per barrel.
Iran continued drone assaults on Gulf neighbors over the weekend. The UAE stated it intercepted two drones coming from Iran, Qatar condemned a drone assault that struck a cargo ship in its waters, and Kuwait stated its air defenses had encountered hostile drones that entered its airspace.
Iranian Military spokesperson Brigadier Basic Mohammad Akraminia, in an interview with IRNA, warned of “stunning choices” if adversaries made one other “miscalculation,” saying any future aggression would take the battle into areas “the enemy has not anticipated.”
Iran’s new Supreme Chief Mojtaba Khamenei, who has not appeared publicly because the warfare started, additionally issued “new and decisive directives” for navy operations, state broadcaster reported, with out elaborating.
All eyes on Beijing
The unresolved standoff hangs over Trump’s upcoming summit with Chinese language President Xi Jinping later this week in Beijing, the place the Iran warfare is more likely to take middle stage.
Washington has sought to press Beijing to lean on Tehran to reopen the strait, although China’s urge for food to behave as a stress mechanism stays unclear.
The bottom case, in response to Ben Emons, managing director at Fed Watch Advisors, is a “managed détente with doubtlessly skinny deliverables” — probably amounting to imprecise joint language on de-escalation and retaining oil flowing.
China shares Washington’s curiosity in a steady Hormuz, Emons stated, however can’t be seen making concessions that undercut its partnership with Tehran or threat the reputational publicity of a failed mediation effort.
In a high-profile diplomatic overture, Beijing hosted Iranian Overseas Minister Abbas Araghchi final week, with Chinese language high diplomat Wang Yi reaffirming the “strategic partnership” between the 2 nations whereas urging Tehran to pursue a diplomatic decision to the regional battle and chorus from hostilities.
