Key insights
- Trump's rejection of Iran's ceasefire response raises geopolitical tensions. Continued conflict could disrupt shipping in the Strait of Hormuz, impacting oil prices and potentially increasing market volatility. The mention of Iran's nuclear program adds another layer of uncertainty, though the direct impact on US equities is moderate unless the situation escalates significantly.
By Nandita Bose
WASHINGTON, May 11 (Reuters) - President Donald Trump said on Monday that the ceasefire with Iran was "on life support," after dismissing Tehran’s response to a U.S. peace proposal as "stupid."
Trump’s swift rejection of Iran’s response on Sunday has fueled concerns that the 10-week-old conflict will drag on and continue to paralyze shipping through the Strait of Hormuz.
"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 said of the ceasefire. "It’s on life support."
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 U.S. ally Israel is fighting Iran-backed Hezbollah militants.
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.
On Monday, Trump also claimed Iran is willing to give the United States "the nuclear dust", referring to Iran’s enriched uranium stockpile, and said only China and the U.S. have the capability to retrieve it.