Commodities May 11, 2026 12:11 PM

Trump Says Iran Ceasefire Is 'On Life Support' After Rejecting Tehran's Reply

Washington's dismissal of Iran's response raises risks the 10-week conflict will persist and continue to disrupt shipping through the Strait of Hormuz

By Derek Hwang

President Donald Trump on Monday described the ceasefire with Iran as 'on life support' after rejecting Tehran's response to a U.S. proposal to reopen negotiations. Iran's reply pressed for a comprehensive end to hostilities, compensation, and removal of sanctions while asserting control over the Strait of Hormuz. Trump also asserted that Iran would provide the United States with its enriched uranium stockpile, a claim tied to retrieval capabilities he said only China and the U.S. possess.

Trump Says Iran Ceasefire Is 'On Life Support' After Rejecting Tehran's Reply

Key Points

  • President Trump publicly rejected Iran's response to a U.S. proposal and said the ceasefire was "on life support" after calling Tehran's reply "a piece of garbage." - Impacts: geopolitics, markets sensitive to conflict news.
  • Iran's response demanded an end to hostilities on all fronts, compensation for war damage, assertion of sovereignty over the Strait of Hormuz, an end to the U.S. naval blockade, guarantees of no further attacks, lifting of sanctions, and removal of the ban on Iranian oil sales. - Impacts: energy markets and maritime shipping.
  • Trump claimed Iran would give the United States its enriched uranium stockpile - termed "the nuclear dust" - and said only China and the U.S. have the capability to retrieve it. - Impacts: security and non-proliferation considerations, diplomatic tensions.

WASHINGTON, May 11 - President Donald Trump said on Monday that the ceasefire with Iran was "on life support," after dismissing Tehran's response to a U.S. peace proposal as "stupid." Trump characterized the Iranian reply as unacceptable and said he did not finish reading it, calling it "a piece of garbage."

Trump's rapid rejection of Iran's response on Sunday has heightened concerns that the conflict, now in its tenth week, will continue and further disrupt maritime traffic through the Strait of Hormuz. The president said the ceasefire was "the weakest right now," attributing that assessment to Iran's written reply.

Washington had recently put forward a proposal intended to reopen negotiations. In turn, Iran on Sunday issued a response centered on ending the war on all fronts, including in Lebanon, where Iran-backed Hezbollah militants are engaged against U.S. ally Israel. The Iranian reply, as outlined in the response, included several distinct demands and positions.

Tehran's response called for compensation for war-related damage, underscored its sovereignty over the Strait of Hormuz, and urged the United States to end its naval blockade. The response also demanded guarantees against further attacks, lifting of sanctions, and removal of a ban on Iranian oil sales.

Separately on Monday, Trump said Iran was willing to hand over what he called "the nuclear dust," referring to Iran's enriched uranium stockpile, and added that only China and the United States have the capability to retrieve it. These remarks followed the exchange of proposals and rebuttals between Washington and Tehran.

The rapid sequence of a U.S. proposal, an Iranian response, and the U.S. dismissal of that response leaves the ceasefire's prospects uncertain and keeps attention on the Strait of Hormuz, where disruption to shipping has been a prominent concern during the conflict.

Risks

  • Continuation of the conflict due to the mutual rejection of proposals and replies, which could prolong hostilities and maintain pressure on regional security - Affects: defense, shipping, and energy sectors.
  • Ongoing disruptions to shipping through the Strait of Hormuz if hostilities persist or if maritime operations remain constrained - Affects: global shipping, oil transport, and related insurance markets.
  • Heightened diplomatic tensions stemming from claims about Iran's enriched uranium stockpile and retrieval capabilities, which could complicate negotiations and international responses - Affects: diplomatic channels and security-focused markets.

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