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Iran IRGC Commander Warns Renewed Conflict "Possible" After Trump Rejects Day-64 Peace Proposal

Trump says Tehran is asking for terms he "can't agree to" as the U.S. naval blockade enters its third month and gas prices hit a four-year high.

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A senior commander of Iran's Islamic Revolutionary Guard Corps warned Saturday that renewed combat with the United States is "possible" and that Iranian forces are "fully prepared" for any contingency, hours after President Donald Trump publicly rejected Tehran's latest proposal to wind down the 64-day war that has plunged the global economy into an oil-driven slump.

The statement, attributed to a senior IRGC operations officer and published by Iranian state media, marked the most explicit threat from Iran's military leadership since the early-April ceasefire began. It came after Trump told reporters at the White House that Iran was "asking for things I can't agree to" and called Tehran's proposal — delivered through mediators in Qatar, Pakistan, Egypt and Turkey — fundamentally unserious. The proposal had outlined a phased pathway out of the conflict: Iran would reopen the Strait of Hormuz to commercial shipping in exchange for the United States lifting its naval blockade, with negotiations over Iran's nuclear program postponed to a later stage. The framework represented a meaningful softening of Iran's earlier insistence that the blockade had to end before any talks could begin.

The stakes have rarely been higher. There has been no exchange of fire between U.S. and Iranian forces since April 7, but the U.S. Navy continues to enforce a blockade that has turned back 48 Iranian-flagged vessels in the past three weeks alone, according to Pentagon figures. Iran in turn has refused to allow any foreign-flagged tankers to transit the Strait of Hormuz — choking off roughly 20 million barrels per day of crude and refined product flows that normally pass through one of the world's busiest energy chokepoints. Both governments have continued to accuse each other of violating the truce.

The diplomatic stalemate is bleeding into the U.S. economy. Brent crude was trading above $112 a barrel late Friday — up from about $76 the day before the war began — and AAA's national average price of regular gasoline reached $4.30 a gallon, the highest since July 2022 and 44% above pre-war levels. Brown University researchers estimate Americans have collectively paid more than $29.2 billion in extra fuel costs since the war began, an average of $223 per household. The IMF this month cut its global growth forecast to a decade low, citing the energy shock, and Spirit Airlines on Saturday became the first major U.S. carrier in 25 years to shut down — explicitly blaming the cost of jet fuel.

Diplomatic activity continues despite the public posturing. Senior Trump advisers Jared Kushner and Steve Witkoff traveled last week to Pakistan for what U.S. officials described as exploratory talks with Iranian and Gulf intermediaries. Republican senators including John Curtis of Utah, Thom Tillis of North Carolina and Josh Hawley of Missouri have signaled they want a formal congressional vote on the war as the War Powers Act 60-day authorization deadline expired this week, although Defense Secretary Pete Hegseth has argued in Senate testimony that the ceasefire "stops the clock." The Trump administration formally notified Congress on Thursday that it considers "hostilities" to have "terminated" — a legal posture intended to defeat the Resolution's automatic withdrawal provision, but one that Democrats and a growing handful of Republicans say does not match the reality of an ongoing naval blockade and active combat air patrols across the Persian Gulf.

Originally reported by CBS News.

Iran IRGC Trump peace proposal Strait of Hormuz Tehran