U.S. President Donald Trump has rejected Iran’s proposed peace conditions aimed at easing rising tensions between both countries, as Tehran warned of possible fresh attacks if Washington intensifies military actions in the Gulf region.

Trump reportedly described Iran’s response to a U.S.-backed peace proposal as “unacceptable,” signaling a setback in ongoing diplomatic efforts to prevent a broader conflict in the Middle East.

According to international reports, Iran’s proposal included demands for the removal of U.S. sanctions, the release of frozen Iranian assets, compensation for damages linked to recent military confrontations, and an end to increased American naval presence around the Strait of Hormuz.

Iranian authorities also reportedly insisted on preserving parts of the country’s nuclear programme, a condition that clashes with Washington’s push for stricter limitations on Tehran’s uranium enrichment activities.

Speaking on the growing tensions, Iranian Foreign Ministry spokesman Esmail Baghaei accused the United States of imposing unrealistic conditions, warning that any renewed military strike or escalation near the Strait of Hormuz would be met with a strong response from Tehran.

The latest disagreement has heightened fears of renewed hostilities across the Middle East, particularly around the strategic Strait of Hormuz, one of the world’s busiest oil shipping routes.

Global oil markets reacted to the development, with crude prices rising amid concerns that prolonged instability in the Gulf region could disrupt international energy supplies and increase shipping costs.

The diplomatic standoff follows weeks of heightened military activities involving the United States and Iran, including reported missile and drone operations as well as military deployments across the Gulf region.

The diplomatic standoff follows weeks of heightened military activities involving the United States and Iran, including reported missile and drone operations as well as military deployments across the Gulf region.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu has maintained pressure on Iran, insisting that security concerns over Tehran’s nuclear ambitions must be fully addressed before any long-term peace arrangement can be achieved.