Trump dismisses Iran's reply to peace plan, oil jumps as Hormuz closure persists

President Donald Trump rejected Iran’s response to a U.S. peace proposal within hours of its release, calling it 'TOTALLY UNACCEPTABLE' on social media. Iran’s offer, delivered Sunday via state TV and Tasnim news agency, sought an end to hostilities—particularly in Lebanon, where Israel fights Iran-backed Hezbollah—alongside demands for U.S. sanctions relief, compensation for war damage, and unfreezing of Iranian assets. Tehran also reasserted its sovereignty over the Strait of Hormuz and called for lifting the U.S. naval blockade. In response, Iran’s Foreign Ministry spokesperson Esmaeil Baghaei framed the proposal as 'generous and responsible,' emphasizing regional security and safe passage through Hormuz. The U.S. had initially proposed halting fighting before addressing contentious issues like Iran’s nuclear program. Trump’s dismissal followed his claim that Iran was 'defeated' but 'not done,' raising concerns about prolonged conflict. The deadlock has crippled shipping through the Strait of Hormuz, a critical route carrying one-fifth of global oil and gas before the war began in late February. While three tankers exited the strait last week, sporadic clashes near the waterway have tested a ceasefire in effect since early April. Oil prices jumped nearly 3% Monday, reflecting fears the conflict will drag on, straining global energy markets. Trump’s upcoming visit to Beijing Wednesday may address the Iran crisis, as he has urged China to pressure Tehran into negotiations. Iran’s Baghaei suggested China could instead use the meeting to counter U.S. actions in the Gulf, warning of risks to regional peace and economic stability. NATO allies have declined to intervene militarily without a broader peace deal, leaving the strait’s future uncertain. Public opinion in the U.S. is divided, with voters facing higher gasoline prices amid the conflict less than six months before national elections. The war’s impact on global energy supplies and shipping remains a key flashpoint, with no clear diplomatic or military resolution in sight.