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. (Photograph by Amirhossein KHORGOOEI / ISNA / AFP through Getty Photos) /
Amirhossein Khorgooei | Afp | Getty Photos
U.S. President Donald Trump rejected Iran’s counterproposal to finish the 10-week conflict 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 world vitality markets.
“I’ve simply learn the response from Iran’s so-called “Representatives.” I do not prefer it — TOTALLY UNACCEPTABLE!” the president mentioned in a Fact Social submit 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 conflict reparations, full sovereignty over the Strait of Hormuz, an finish to sanctions, and the discharge of frozen Iranian property.
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 mentioned on X in Persian, translated through Grok.
Israeli Prime Minister Benjamin Netanyahu, in an interview with CBS Information’ “60 Minutes,” mentioned the conflict was not over as a result of there was “extra work to be finished.” Iran had neither surrendered its enriched uranium nor dismantled enrichment websites, and continues to help regional proxies and advance its ballistic missile program, he mentioned.
Nuclear and Hormuz deadlock
The Wall Avenue Journal reported that Iran rejected U.S. demands relating to 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 it’s returned if Washington exits any eventual deal, the Journal reported.
The U.S. needs 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 services.
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 conflict started, a passage that was reportedly accepted by Iran to construct confidence with Qatar and Pakistan, although the symbolic opening did little to ease broader market issues.
U.S. West Texas Intermediate futures with June supply superior 3.08% to $95.42 per barrel on Monday, whereas the worldwide benchmark Brent crude futures with July supply rose 3.16% to $104.49 per barrel.
Iran continued drone assaults on Gulf neighbors over the weekend. The UAE mentioned it intercepted two drones coming from Iran, Qatar condemned a drone assault that struck a cargo ship in its waters, and Kuwait mentioned its air defenses had encountered hostile drones that entered its airspace.
Iranian Military spokesperson Brigadier Common 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 conflict 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 conflict is more likely to take heart 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 strain mechanism stays unclear.
The bottom case, in keeping with Ben Emons, managing director at Fed Watch Advisors, is a “managed détente with doubtlessly skinny deliverables” — seemingly amounting to obscure joint language on de-escalation and preserving oil flowing.
China shares Washington’s curiosity in a steady Hormuz, Emons mentioned, 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 prime 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.
