Iran Peace Plan Rejected by Donald Trump
Analysis based on 81 articles · First reported May 02, 2026 · Last updated May 13, 2026
The rejection of Iran's peace plan by Donald Trump and the ongoing tensions, including drone attacks and threats of renewed hostilities, are causing significant market instability. The continued blocking of the Strait of Hormuz by Iran is disrupting global oil, gas, and fertilizer supplies, leading to increased prices and concerns about a wider global economic downturn. The market is reacting negatively to the lack of a diplomatic resolution and the potential for further escalation.
Iran has sent its latest peace proposal to the United States via Pakistani mediators, aiming for a permanent end to the war and ensuring shipping security, particularly in the Strait of Hormuz. However, US President Donald Trump swiftly rejected the proposal as 'TOTALLY UNACCEPTABLE,' accusing Iran of 'playing games.' The US had proposed a deal to end the war, reopen the Strait of Hormuz, and roll back Iran's nuclear program, an issue Iran prefers to discuss later. The fragile ceasefire has been tested by drone attacks on a ship off Qatar and in the airspace of the United Arab Emirates and Kuwait, with the UAE blaming Iran. The Islamic Revolutionary Guard Corps has conducted drills and reiterated warnings against attacks on Iranian vessels. Iran's new supreme leader, Mojtaba Khamenei, has issued directives for continued operations. Another major sticking point is Iran's highly enriched uranium, with the International — International Atomic Energy Agency reporting significant stockpiles. Israeli Prime Minister Benjamin Netanyahu insists the war isn't over until the uranium is removed. Russia has offered to take enriched uranium from Iran as part of a settlement. Iran has also warned against a planned French-British maritime security effort in the Strait of Hormuz. The ongoing tensions have severely disrupted global energy and fertilizer supplies, leading to market instability and concerns about a humanitarian crisis.
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