Trump Calls Iran's Response to Peace Plan 'Totally Unacceptable' as Cease-Fire Extension Talks Collapse

President Trump on Sunday declared Iran's response to the latest U.S. peace proposal "totally unacceptable," effectively ending hopes for extending the current cease-fire between the two nations. The breakdown comes after weeks of diplomatic negotiations aimed at securing a 30-day extension to the fragile truce and reopening the strategically vital Strait of Hormuz to international shipping. Secretary of State Marco Rubio had expressed cautious optimism earlier this week, saying he hoped Iran's response would constitute a "serious offer" for continued negotiations.

The collapse of talks represents a significant setback for the Trump administration's efforts to de-escalate tensions in the Persian Gulf region. Both Trump and Israeli Prime Minister Benjamin Netanyahu indicated in separate interviews Sunday that the conflict is far from over, refusing to rule out renewed military action. The Trump administration had initially suggested last week that the war had "run its course," but the president's latest statements signal a harder line as diplomatic options appear to narrow.

The failed negotiations carry immediate economic implications as global energy markets react to the prospect of continued instability in one of the world's most important oil transit routes. The Strait of Hormuz, through which roughly 20% of global petroleum liquids pass, has remained a flashpoint throughout the conflict. Iran's continued restrictions on shipping through the waterway have contributed to supply chain disruptions and elevated energy prices worldwide.

Diplomatic sources familiar with the negotiations described the Iranian response as falling short of U.S. expectations for concrete commitments on both military de-escalation and restoration of normal shipping operations. The specific details of Iran's proposal have not been made public, but Trump's characterization suggests significant gaps remain between the two sides' positions on key issues including sanctions relief and security guarantees.

The breakdown in talks now raises questions about the duration of the current cease-fire, which had been scheduled to expire in the coming weeks. Military analysts warn that without a negotiated extension, both sides may feel pressure to resume more aggressive postures, potentially reigniting the conflict that has already disrupted global shipping lanes and contributed to rising energy costs across the United States and allied nations.