Talks to secure a ceasefire with Iran stalled Tuesday after President Donald Trump said the truce was “on life support” following Tehran’s rejection of a U.S. proposal and presentation of a list of demands he called “garbage.”
Iran’s response insisted on an end to hostilities on all fronts, including in Lebanon where Israel is fighting Iran-backed Hezbollah, and reiterated claims over sovereignty in the Strait of Hormuz. The reply also called for compensation for war damage and the lifting of what Tehran describes as a U.S. naval blockade, among other conditions.
Trump said the Iranian counter-offer jeopardized the ceasefire that took effect on April 7. He described the document as unacceptable and said he had not finished reading it.
U.S. diplomats had proposed stopping the fighting first and negotiating more contentious issues later, including Iran’s nuclear program. Tehran’s demands, however, would require broader concessions across the region.
The diplomatic impasse has tightened pressure on global energy markets. Brent crude rose above $104.50 a barrel in early Asian trading as the near-closure of the Strait of Hormuz limited shipments. Before the conflict began on February 28, the narrow waterway carried about one-fifth of the world’s oil and liquefied natural gas; it has since become a key leverage point in the conflict.
Shipping disruptions forced producers to cut exports, and a Reuters survey showed OPEC output fell in April to its lowest level in more than two decades. The United States on Monday added sanctions on individuals and companies accused of helping Iran ship oil to China, part of efforts to choke off funding for Tehran’s military and nuclear programs, and warned banks about attempts to evade existing sanctions.
Trump is due in Beijing on Wednesday, and Iran is expected to be among topics he will raise with Chinese President Xi Jinping.
Maritime traffic through Hormuz is a trickle compared with pre-war levels. Data from Kpler and LSEG showed three crude tankers exited the strait last week with tracking systems switched off to reduce the risk of an Iranian attack. A second Qatari LNG tanker was attempting to transit the waterway after an earlier cargo crossed under an arrangement involving Iran and Pakistan.
Domestically, the war is unpopular with U.S. voters as fuel prices rise ahead of nationwide elections that will shape control of Congress. A Reuters/Ipsos poll completed Monday found two-thirds of Americans — including about one-third of Republicans and almost all Democrats — believe Trump has not clearly explained why the country went to war.
Washington has also had limited success in rallying international support. NATO partners have declined to send ships to reopen the strait without a comprehensive peace agreement and a mandate for an international mission. The State Department said U.S. officials held separate calls with Australian and British counterparts about efforts to restore freedom of navigation in the strait, without providing details.
Turkey’s foreign minister, Hakan Fidan — who has been coordinating with the U.S., Iran and mediator Pakistan since the conflict began — will travel to Qatar for talks aimed at addressing the war and ensuring navigational safety in the Strait of Hormuz, a Turkish diplomatic source said.
