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 Lebanon, where U.S. ally Israel is fighting Iran-backed Hezbollah militants. Tehran also emphasized 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 April 7.
“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 program.
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 February 28, 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 Monday 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 programs, 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.
(Reuters)
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