US-Israel-Iran War Latest Update: ‘Ceasefire on Life Support’ Trump Rejects Iran Proposal, Calls It ‘Garbage’ as Tensions Rise

Trump rejected Iran’s peace proposal, calling the ceasefire “on life support” and “garbage.” Oil rose above $104 as tensions over the Strait of Hormuz and regional conflict continue to disrupt global energy flows.

By: Amreen Ahmad
Last Updated: May 11, 2026 23:33:40 IST

The fragile truce between the United States and Iran has come under renewed strain after US President Donald Trump sharply rejected Tehran’s latest peace proposal, calling it “garbage” and warning that the ceasefire is now “on life support.” The remarks have heightened fears of a renewed military escalation across the Middle East, where conflict has already claimed thousands of lives since early 2024. Diplomatic efforts to stabilize the region now appear increasingly uncertain as both sides trade accusations over conditions for peace, sanctions and control of strategic energy routes.

Ceasefire Under Strain as Fragile Calm Faces Renewed Pressure

  • Trump said the ceasefire is currently at its weakest stage
  • He referred to Iran’s proposal as a “piece of garbage”
  • Claims he did not finish reading Tehran’s counteroffer
  • Warns that renewed fighting remains a real possibility
  • U.S. insists Iran must first halt military linked activities

How the Conflict Began & Escalated Into a Regional Crisis

The war between the U.S. and Iran began on February 28 and has since triggered wider regional instability involving Lebanon, Israel and Gulf shipping routes. A temporary ceasefire introduced on April 8 slowed direct attacks but failed to resolve core disputes.

According to conflict monitors, thousands have been killed and critical trade flows disrupted, especially energy shipments moving through the Strait of Hormuz.

Trump Rejects Iran’s Peace Proposal as Ceasefire Tensions Flare

Iran recently submitted a revised peace framework calling for:

  • Complete end to military operations
  • Lifting of U.S. sanctions
  • Release of frozen Iranian assets
  • End to naval restrictions in Gulf waters
  • Recognition of Iran’s control over the Strait of Hormuz

Trump rejected the offer outright, claiming it lacked credibility and failed to address core US security concerns.

Iran Defends Its Position Amid Escalating US Criticism

Iranian officials defended the proposal, calling it balanced and “responsible.” Foreign Ministry spokesperson Esmaeil Baghaei stated that Tehran’s demands included legitimate conditions such as ending the blockade, ensuring regional stability and protecting maritime trade routes while tehran insists that sanctions relief and security guarantees are essential before any long-term ceasefire agreement.

Strait of Hormuz Takes Centre Stage in Intensifying Regional Standoff

The Strait of Hormuz, through which nearly 20% of global oil and liquefied natural gas flows, has emerged as the most sensitive flashpoint in the conflict.

  • Brent crude rose around 2.7% to $104 per barrel
  • Oil exports have declined due to shipping disruptions
  • OPEC output fell to its lowest level in over 20 years in April
  • Insurance and freight costs have surged sharply in recent weeks

Energy analysts warn that continued instability could significantly impact global inflation and fuel prices.

Regional Economies Face Growing Strain as Conflict Impacts Markets

The near-closure of key shipping lanes has forced oil-producing nations to reduce exports, tightening global supply chains and markets remain highly sensitive to developments in the Gulf region, with traders reacting strongly to every diplomatic signal. The energy crisis has also contributed to rising costs across transportation, manufacturing and food supply networks worldwide.

Talks Stall as Diplomatic Gap Between Sides Continues to Grow

Negotiations between Washington and Tehran remain stalled with both sides refusing to compromise on core demands while the US prioritizes nuclear restrictions and security guarantees, Iran continues to demand sanctions relief and sovereignty assurances. Observers say the current impasse has significantly reduced the chances of a near-term settlement.

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