BY MIRABEL ODETA

Efforts to bring an end to the escalating conflict between Iran and the United States appeared stalled on Tuesday after U.S. President Donald Trump dismissed Tehran’s latest proposal for ending the two-month war. According to officials familiar with discussions inside the White House, Trump was dissatisfied with Iran’s position because it delayed negotiations over Tehran’s nuclear programme until after the fighting and maritime disputes were resolved.

Speaking after meetings with advisers on Monday, Trump reportedly insisted that any agreement with Iran must address nuclear concerns immediately rather than postponing them to a later phase. Iranian officials, however, are said to favour a step-by-step process beginning with a ceasefire and guarantees that military action against the country would not resume.

In a post on Truth Social, Trump claimed Iran had informed the United States that the country was in a “state of collapse” while attempting to stabilise its leadership structure. He also stated that Tehran wanted the Strait of Hormuz reopened as quickly as possible. The post did not explain how the message had been communicated, and Iranian authorities did not immediately respond to the remarks.

Earlier in the day, an Iranian military spokesperson insisted the conflict was far from over, signalling that Tehran was not prepared to back down despite mounting economic and military pressure. Since the war began on February 28, Iran has heavily restricted shipping through the Strait of Hormuz, one of the world’s most strategically important energy chokepoints. The narrow waterway carries a significant portion of global oil exports, and disruptions there have rattled international markets.

The United States has intensified pressure by blockading Iranian shipping routes, preventing several Iranian vessels from reaching international markets. Reports from Washington indicated Trump had instructed aides to prepare for a prolonged maritime blockade targeting Iran’s ports and trade activity. The move has further strained diplomatic efforts and heightened fears of a broader regional crisis.

Hopes for renewed negotiations have weakened sharply in recent days. Trump abruptly cancelled a planned diplomatic mission involving special envoy Steve Witkoff and adviser Jared Kushner to Pakistan, which had been serving as a mediator in the conflict. Iranian Foreign Minister Abbas Araqchi travelled repeatedly to Islamabad over the weekend in an attempt to keep talks alive, but little progress was achieved.

Inside Iran, political uncertainty has reportedly complicated decision-making. Following deadly U.S.-Israeli strikes that killed several senior political and military figures, the country’s power structure has become increasingly fragmented. The death of Supreme Leader Ali Khamenei at the start of the conflict and the rise of his son Mojtaba have reportedly strengthened the influence of commanders within the Islamic Revolutionary Guard Corps, many of whom are believed to oppose compromise with Washington.

Iran’s proposed framework for negotiations reportedly included several phases. Tehran first wants the fighting to stop and seeks guarantees that the United States cannot restart military operations. After that, discussions would focus on ending the U.S. naval blockade and determining the future status of the Strait of Hormuz, which Iran says it intends to reopen under its own authority. Only after those issues are resolved would broader negotiations begin on Iran’s nuclear programme and uranium enrichment rights.

The proposal resembles aspects of the 2015 nuclear agreement between Iran and world powers, which placed major restrictions on Tehran’s nuclear activities in exchange for sanctions relief. Trump withdrew the United States from that agreement during his first term in office, arguing it failed to permanently stop Iran’s nuclear ambitions.

The conflict is also beginning to weigh heavily on Trump politically at home. Recent polling showed the president’s approval ratings slipping to the lowest levels of his current term as public frustration grows over inflation, rising energy costs, and the expanding war. Many Americans remain unconvinced by the administration’s changing explanations for continued military involvement in the Middle East.

Tensions have also emerged between Washington and several European allies. German Chancellor Friedrich Merz criticised the Trump administration’s approach, saying Iran’s leadership appeared to be humiliating the United States and questioning whether Washington had a clear exit strategy. Trump responded angrily on social media, saying Merz “doesn’t know what he’s talking about.”

Meanwhile, Britain attempted to project unity between Western allies despite growing disagreements. Speaking before the U.S. Congress, King Charles III stressed that the United Kingdom and the United States would remain close partners even during periods of uncertainty and division over the Iran conflict.

Financial markets continued reacting nervously to the instability. Oil prices climbed again on Tuesday, with Brent crude approaching $111 per barrel as traders worried about prolonged disruptions in the Gulf. Analysts warned that any sustained closure or restriction of the Strait of Hormuz could trigger severe consequences for global energy supplies and international trade.

The World Bank also warned that energy prices could rise sharply in 2026 if the conflict continues disrupting shipping lanes and production networks. At the same time, the United Arab Emirates announced plans to leave OPEC and OPEC+, exposing widening disagreements among Gulf states over how to respond to Iran and the broader crisis.

Shipping data highlighted the scale of disruption in the Gulf region. Before the conflict began, between 125 and 140 ships travelled through the Strait of Hormuz each day. Over the past 24 hours, however, only seven vessels reportedly crossed the waterway, and none were carrying oil intended for international markets. Several Iranian oil tankers have also reportedly been forced to return home because of the U.S. naval blockade.

Iranian government spokesperson Fatemeh Mohajerani said Tehran was attempting to reduce the impact of sanctions and the blockade by expanding trade routes through northern, eastern, and western corridors.

The United States further tightened pressure on Tehran by announcing sanctions against 35 individuals and organisations accused of helping Iran operate a shadow banking network. The U.S. Treasury Department also warned that any company making payments to Iran or the Islamic Revolutionary Guard Corps for passage through the Strait of Hormuz could face severe sanctions.

With both sides refusing to compromise on key demands and military tensions still rising, prospects for a near-term peace agreement remain uncertain. The conflict continues to reshape global energy markets, strain diplomatic alliances, and deepen fears of wider instability across the Middle East.

Original article