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Hopes for a peace deal between the United States and Iran weakened Tuesday after U.S. President Donald Trump said the fragile ceasefire was “on life support” following Tehran’s rejection of a U.S.-backed proposal aimed at ending the conflict.
Iran reportedly refused to accept Washington’s plan to halt hostilities before discussing broader issues such as Tehran’s nuclear program. Instead, Iranian officials demanded an end to the regional war involving Israel and Hezbollah in Lebanon, compensation for wartime damages, removal of the U.S. naval blockade, and recognition of Iran’s authority over the Strait of Hormuz.
Trump sharply criticized Iran’s response, calling it “garbage” and warning that the ceasefire agreement that began on April 7 could collapse. His comments heightened fears of further instability in the Middle East and renewed concerns over global energy supplies.
Brent crude oil prices climbed above $104.50 per barrel during early Asian trading as tensions around the Strait of Hormuz intensified. The strategic waterway, which previously handled nearly 20% of the world’s oil and liquefied natural gas shipments, has seen shipping traffic fall dramatically since the war began on February 28.
Shipping data from Kpler and LSEG showed only a handful of oil tankers passing through the strait last week, with several vessels reportedly switching off tracking systems to avoid potential attacks. Meanwhile, disruptions in the region have pushed OPEC oil production to its lowest level in more than 20 years, according to a Reuters survey.
The United States also announced new sanctions targeting individuals and companies accused of helping Iran export oil to China. Washington said the measures are designed to limit funding for Iran’s military and nuclear activities.
As global leaders attempt to revive negotiations, Trump is expected to discuss Iran with Chinese President Xi Jinping during his upcoming visit to Beijing. Meanwhile, Turkey and Qatar continue diplomatic efforts focused on restoring maritime security and preventing further escalation in the Strait of Hormuz.
