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The escalating conflict surrounding the Strait of Hormuz took another dramatic turn Sunday. President Donald Trump publicly rejected Iran’s latest response to a U.S.-backed peace proposal aimed at ending months of fighting that has destabilized global energy markets and heightened fears of a broader Middle East war.

Despite ongoing tensions, two commercial vessels were allowed to pass through the strategically critical Strait of Hormuz, offering a small sign that diplomatic channels may still be open.

Iran Proposes Strait of Hormuz  Peace Plan

Trump sharply criticized Tehran’s response in a post on Truth Social, writing: “I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it — TOTALLY UNACCEPTABLE.”

The president did not elaborate on which parts of Iran’s proposal prompted the rejection, but Iranian state media indicated that Tehran’s response focused heavily on ending hostilities across the region, ensuring safe passage through the Strait of Hormuz, and securing guarantees against future military action.

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Iran Pushes for Ending War and Sanctions Relief

According to Iran’s semi-official Tasnim News Agency, Tehran’s counterproposal included several major demands:

• An immediate end to military operations on all fronts
• Removal of the U.S. naval blockade
• Guarantees against future attacks on Iranian territory
• Lifting of U.S. sanctions, including restrictions on Iranian oil exports

The proposal reportedly also addressed concerns surrounding Iran’s nuclear program. The Wall Street Journal cited unnamed officials saying Iran offered to dilute part of its highly enriched uranium stockpile while transferring the remainder to a third-party nation.

Pakistan, which has emerged as a key mediator during the crisis, reportedly forwarded Tehran’s response to Washington. Pakistani officials confirmed their involvement but said there had been no immediate U.S. reply beyond Trump’s public criticism.

Strait of Hormuz Global Flashpoint

The Strait of Hormuz remains one of the world’s most strategically vital shipping lanes. Before the conflict erupted earlier this year, roughly one-fifth of the world’s oil supply passed through the narrow waterway connecting the Persian Gulf to international markets.

Iran has effectively restricted much non-Iranian commercial shipping through the strait since the war between U.S.-Israeli forces and Tehran-aligned groups intensified in February.