A woman walks past an anti-US billboard depicting US President Donald Trump and the Strait of Hormuz, in Tehran, Iran, May 2, 2026. Photo: Majid Asgaripour/WANA (West Asia News Agency) via REUTERS

President Donald Trump has swiftly rejected Iran‘s response to a US peace proposal to end the 10-week-old conflict between the two countries, describing the Iranian offer as “totally unacceptable.”

Days after Washington floated a proposal aimed at reopening negotiations, Iran on Sunday released a response focused on ending the war on all fronts, including Lebanon, where US ally Israel is fighting Iran-backed Hezbollah terrorists.

Tehran also demanded compensation for war damage, emphasized its sovereignty over the Strait of Hormuz, and called on the United States to end its naval blockade, guarantee no further attacks, lift sanctions, and remove a ban on Iranian oil sales.

Within hours, Trump dismissed Tehran’s offer in a social media post.

“I don’t like it — TOTALLY UNACCEPTABLE,” Trump wrote on Truth Social, without giving further detail.

Trump’s response has fueled concerns that the conflict, which began on Feb. 28 with US-Israeli strikes on Iran, will drag on and continue to paralyze shipping through the Strait of Hormuz, pushing oil prices higher on Monday.

The US had proposed an end to fighting before starting talks on more contentious issues, including Iran‘s nuclear program.

Tehran responded on Monday by defending its stance.

“Our demand is legitimate: demanding an end to the war, lifting the [US] blockade and piracy, and releasing Iranian assets that have been unjustly frozen in banks due to US pressure,” Foreign Ministry spokesperson Esmaeil Baghaei said.

“Safe passage through the Strait of Hormuz and establishing security in the region and Lebanon were other demands of Iran, which are considered a generous and responsible offer.”

Brent crude oil futures lost some strong early gains on Monday to trade nearly 2% higher at around $103 a barrel, as the deadlock left the Strait of Hormuz largely closed. Before the war began, the narrow waterway carried one-fifth of the world’s oil and liquefied natural gas, 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.

TRICKLE OF SHIPPING THROUGH HORMUZ

Traffic through the Strait of Hormuz is at a trickle compared to before the war. Shipping data on Kpler and LSEG showed that three tankers laden with crude exited the waterway last week, with trackers switched off to avoid Iranian attack.

A second Qatari LNG tanker was attempting to transit the strait, the data showed, days after the first such cargo crossed under an arrangement involving Iran and Pakistan.

Sporadic flare-ups around the strait in recent days have tested a ceasefire that has paused all-out warfare since it took effect in early April.

In the United States, surveys show the war is unpopular with voters facing sharply higher gasoline prices less than six months before nationwide elections that will determine whether Trump’s Republican Party retains control of Congress.

Washington has also struggled to build international support, with NATO allies refusing to send ships to reopen the waterway without a full peace deal and an internationally mandated mission.

Hakan Fidan, the foreign minister of Turkey, which has been liaising closely with the US, Iran, and mediator Pakistan since the start of the war, will hold talks in Qatar on Tuesday on the conflict and on ensuring navigational safety in the strait, a Turkish diplomatic source said.

TRUMP SET TO DISCUSS IRAN IN BEIJING

The next diplomatic or military steps remain unclear. Trump is expected to arrive in Beijing on Wednesday, where Iran is set to be among the topics discussed with Chinese President Xi Jinping as pressure mounts to end the conflict and the energy crisis it has triggered.

Trump has been leaning on China to use its influence to push Tehran toward a deal with Washington.

Iran‘s foreign ministry spokesperson Baghaei suggested China could instead use the visit to push back against US objectives in the Gulf. “Our Chinese friends know very well how to use these opportunities to warn about the consequences of the US’ illegal and bullying actions on regional peace and security,” he said.

Addressing whether combat operations against Iran were over, Trump said in remarks aired on Sunday: “They are defeated, but that doesn’t mean they’re done.”

Israeli Prime Minister Benjamin Netanyahu said the war was not over because there was “more work to be done” to remove enriched uranium from Iran, dismantle enrichment facilities, and address its proxy forces and ballistic missile capabilities.

Netanyahu told CBS News’ “60 Minutes” that the preferred route was diplomacy, but he did not rule out the use of force.

Despite the ongoing diplomatic efforts, risks to shipping lanes and regional economies remain high.

On Sunday, the United Arab Emirates said it intercepted two drones launched from Iran, while Qatar condemned a drone strike on a cargo ship in its waters. Kuwait reported that its air defenses had dealt with hostile drones entering its airspace.

Clashes have also continued in southern Lebanon between Israel and Hezbollah, despite a US-brokered ceasefire announced on April 16.

Boy George. Photo: ddp via Reuters Connect

British pop icon Boy George expressed solidarity with Jewish people in a video message that was featured at a rally against antisemitism held in London on Sunday.

The British charity Campaign Against Antisemitism (CAA) shared a photo on X that showed Boy George’s video message being played during the event, which was organized by the Board of Deputies of British Jews and the Jewish Leadership Council, with support from other Jewish organizations.

The Board of Deputies of British Jews said around 20,000 people gathered in Whitehall in central London, opposite Downing Street, for the rally that was held in solidarity with the Jewish community following a rise in antisemitic attacks across the United Kingdom, including the recent stabbing of two Jewish men in Golders Green.

An Orthodox Jewish man walks by at a wall showing pictures of protesters killed during anti-government demonstrations in Iran, in Golders Green, London, Britain, March 7, 2026. Photo: REUTERS/Jack Taylor

Britain on Monday sanctioned 12 individuals and entities linked to Iran, accusing them of involvement in hostile activity including plotting attacks and providing financial services to groups seeking to destabilize the UK and other countries.

Those targeted by the sanctions include alleged members and associates of what the British government described as the Zindashti criminal network, as well as several exchange houses and financial operators.

The government said the network was involved in Iranian-backed hostile activity, including threatening, planning, or conducting attacks against people and assets in Britain and elsewhere.

Iran has repeatedly denied involvement in attacks or plots in the UK and other countries.

According to the notice, some individuals were sanctioned for directly participating in hostile acts, while others were accused of providing financial services or other material support to facilitate such activity.

The measures, set out in a government sanctions notice, include asset freezes, travel bans, and director disqualification orders.

Britain said the financial entities sanctioned had provided services to individuals and groups linked to destabilizing activity, allowing networks connected to Iran to move and access funds despite international restrictions.

Last month, police said they were investigating possible Iran links to a recent series of arson attacks on Jewish targets in London, which prompted counter-terrorism inquiries and warnings about hostile activity by Tehran or groups acting on its behalf.

The UK raised its national terrorism threat level to “severe,” the second-highest rating, with police and ministers warning of an elevated risk of attacks and growing concern about hostile activity linked to foreign states, including Iran.