People walk past a mural depicting the late leader of the Islamic Revolution, Ayatollah Ruhollah Khomeini, and the late Iran’s Supreme Leader Ayatollah Ali Khamenei, in Tehran, Iran. Photo: Majid Asgaripour/WANA (West Asia News Agency) via REUTERS

Prospects of a peace deal with Iran dwindled on Tuesday after Donald Trump said a ceasefire was “on life support” as Tehran rejected a US proposal to end the conflict and stuck to a list of demands the US president described as “garbage.”

Iran has called for an end to the war on all fronts, including Lebanon, where US ally Israel is fighting Iran-backed Hezbollah terrorists. Tehran also emphasized its sovereignty over the Strait of Hormuz, demanded compensation for war damage, and an end to the US naval blockade, among other conditions.

Trump, who will discuss the war with Chinese President Xi Jinping during his trip to Beijing this week, said Iran‘s response threatened the status of a ceasefire announced on April 7.

“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, who has repeatedly threatened to end the ceasefire, told reporters on Monday. “It’s on life support.”

OIL EXTENDS GAINS

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

Brent crude oil futures extended gains, climbing to around $108 a barrel, as the deadlock left the Strait of Hormuz largely closed. Before the war began on Feb. 28, the narrow waterway carried a fifth of the world’s oil and liquefied natural gas shipments, and has since become a central pressure point in the conflict.

US Central Command said the aircraft carrier Abraham Lincoln was in the Arabian Sea continuing to enforce the US blockade against Iran, having redirected 65 commercial vessels and disabled four.

The Pentagon put the cost of the war at $29 billion so far, an increase of $4 billion from an estimate provided late last month. An official told lawmakers the new cost included updated repair and replacement of equipment and operational costs.

The war also has driven a roughly 50% increase in gasoline prices across the US, where consumer prices rose at a brisk clip for a second straight month in April, resulting in the largest annual increase in inflation in nearly three years.

TRUMP’S TRIP TO CHINA

Surveys show the war is unpopular with US voters less than six months before nationwide elections that will determine whether Trump’s Republican Party retains control of Congress.

Two out of three Americans, including one in three Republicans and almost all Democrats, think Trump has not clearly explained why the country has gone to war, according to a Reuters/Ipsos poll completed on Monday.

Trump is expected to arrive in Beijing on Wednesday.

Trump wants China to convince Tehran to make a deal with Washington to end the conflict. China maintains ties with Iran and remains a major consumer of its oil exports. China’s foreign ministry has said the US blockade of the strait does not serve the common interest of the international community.

The US on Monday imposed new sanctions on individuals and companies it said were helping Iran ship oil to China, part of efforts to cut off funding for Tehran’s military and nuclear programs, while also warning banks about attempts to evade existing curbs.

IRANIAN OFFICIALS USE TOUGH RHETORIC

Iranian officials, meanwhile, issued statements attempting to show continued resolve in the face of US pressure.

A Fars news agency report cited Mohammad Akbarzadeh, deputy political director of the Islamic Revolutionary Guard Corps Navy, as saying Iran had expanded its definition of the Strait of Hormuz into a “vast operational area” under a new plan.

There was no immediate reply from Iranian authorities to a request for comment on Akbarzadeh’s remarks, which defined the waterway as a zone stretching from the coast of the city of Jask in the east to Siri Island in the west.

In a post on X, parliamentary national security and foreign policy commission spokesperson Ebrahim Rezaei said Iran could enrich uranium up to 90% purity, a level considered weapons-grade, if the country is attacked once more.

Iran’s defense ministry spokesperson said any new attack by an enemy would be met with an immediate response, according to state media. In Tehran, the Guards held drills “centered on preparation to confront the enemy,” state TV reported.

TRICKLE OF SHIPPING THROUGH HORMUZ

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

In the Qatari capital Doha, Turkish Foreign Minister Hakan Fidan said the strait should not be used as a “weapon.”

Lithuania said it could contribute minesweeping capabilities and resources for a potential mission to protect shipping in the strait. Britain said on Saturday it was deploying a warship to the Middle East in preparation for a potential multinational effort in the strait once conditions allow.

Kuwait summoned Iran’s ambassador and handed him a protest note over what it said was the infiltration of Bubiyan Island by armed members of Iran’s Revolutionary Guards and clashes with Kuwaiti armed forces, the foreign ministry said. There was no immediate reaction from Iran.