Frustrated Trump weighs restarting combat operations as US-Iran War ceasefire falters

Oil prices climbed on Tuesday as US-Iran talks stalled, while markets were mixed as traders appeared to shrug off uncertainty over the 10-week-old war.

Optimism over Washington's proposal to Iran to ease the conflict collapsed when Trump told reporters on Monday that Iran's counter-offer was "garbage".

Trump warned that Tehran's rejection of his administration's demands meant the already tenuous ceasefire is now "unbelievably weak".

The impasse, which leaves the vital Strait of Hormuz mostly closed to oil tanker traffic, unnerved global energy markets.

The international benchmark Brent crude price jumped one percent to $105 a barrel during Tuesday morning trade in Asia, while benchmark US oil contract West Texas Intermediate (WTI) also rose one percent to $99 a barrel.

Precious metals also increased, with silver surging more than eight percent to $87 an ounce, capping weeks of rising prices.

But markets were mostly subdued, as analysts reported that traders are in wait-and-see mode as the 10-week war drags on.

President Donald Trump is reportedly growing increasingly frustrated with Iran’s handling of negotiations to end the conflict. Sources say some of his aides believe he is more seriously considering a resumption of major combat operations than in recent weeks according to a CNN report.

Trump’s frustration stems from the continued closure of the Strait of Hormuz and divisions within Iranian leadership, which are limiting progress on nuclear talks. He has called Iran’s latest response both “totally unacceptable” and “stupid,” raising questions about whether Tehran is willing to take a serious negotiating position.

The US Treasury sanctioned three senior IRGC oil officials and nine firms accused of disguising Iranian oil sales to China under the “Economic Fury” campaign launched in April 2026. The crackdown targets revenue allegedly funding Iran’s weapons, proxy groups, and nuclear program, following earlier actions that froze nearly $500 million in crypto assets. The move comes just days before President Trump’s Beijing summit and amid stalled negotiations after an April 8 Pakistan-brokered ceasefire that followed US-Israeli strikes reportedly killing Supreme Leader Ali Khamenei. Critics, including analyst Daniel Davis, question whether decades of sanctions have ever truly changed Iran’s regime behaviour.

The Trump administration said Monday it plans to provide energy companies with 53.3 million barrels of crude from the US Strategic Petroleum Reserve (SPR), in a coordinated effort to ease global oil market volatility triggered by the ongoing US-Israeli conflict with Iran, according to Reuters.

Earlier this year, the Department of Energy released approximately 80 million barrels from the SPR, moving closer to its target of 172 million barrels aimed at stabilizing worldwide energy supplies.

Senator Chuck Schumer criticized President Donald Trump for dragging the US into an 'illegal, costly war' with Iran. He announced Democrats will force a seventh vote on the War Powers Resolution this week to withdraw American troops.

“If Republicans vote against our resolution, they will continue to bear the blame for Trump’s war,” Schumer said.

Mohammad Bagher Ghalibaf, Speaker of Iran's Islamic Consultative Assembly (Parliament), issued a firm statement early on Tuesday asserting that the United States has no viable alternative but to accept Iran's 14-point proposal for resolving the ongoing conflict. "There is no alternative but to accept the rights of the Iranian people as laid out in the 14-point proposal," Ghalibaf posted on X. "Any other approach will be completely inconclusive; nothing but one failure after another. The longer they drag their feet, the more American taxpayers will pay for it."

US President Donald Trump described Iranian missiles traveling at 3,000 miles per hour toward a US vessel in the Strait of Hormuz, "all knocked into the ocean" before impact.

The account ties to a May 7, 2026 clash where CentCom reported US forces intercepting "multiple" Iranian missiles, drones, and boat attacks on three destroyers — USS Truxtun, USS Rafael Peralta, and USS Mason — and then responding with self-defence strikes. Supporters praised US precision as proof of strength, while critics questioned the 111-missile figure against CentCom's vaguer report. Talks are currently stalled after Trump rejected Iran's latest counterproposal and naval blockades keep tensions high over the vital oil route.

Oil prices are climbing after US President Donald Trump’s dismissal of Iran’s latest terms, sparking fears of a fresh escalation in the conflict that would keep the vital Strait of Hormuz closed even longer. Brent is up 2.89% at $104.21, while Murban is up 4.84% at $103.60, and WTI slightly up 0.04% to $98.17 as of 7.30am Tokyo on Tuesday.

Oman Foreign Minister Sayyid Badr bin Hamad Al Busaidi has appealed for an “urgent" humanitarian initiative to allow scores of commercial vessels stranded in the Strait of Hormuz to leave safely, after meeting with officials from the International Maritime Organisation (IMO) in Muscat. The strait has been severely disrupted by ongoing Middle East hostilities and security restrictions, leaving hundreds of ships and thousands of seafarers effectively trapped

US President Donald Trump has accused Iran of reneging on a deal that would have allowed the United States to remove its supply of enriched uranium, stating that Iranian leaders "agree with us and then they take it back".

Trump indicated that despite prior discussions to remove the uranium—specifically that which was buried under sites bombed by the US last year— Iran did not include this transfer in its latest proposal.

"Piece of Garbage" proposal: Trump termed Iran's latest truce proposal "unacceptable" and a "piece of garbage," leaving the current month-long ceasefire on "massive life support". The US demand requires the removal of all of Iran's enriched uranium, including the approximately 440kg of 60% enriched uranium and the full 10-tonne stockpile.

Day 73: Trump calls Iranian response 'totally unacceptable'

Day 72: 'As of today, Tehran’s restraint is over': Iran official

Day 71: Iran keeps US waiting on response to peace plan

Day 70: US fires on Iran tankers as talks hang in balance

Day 69: Iran creates agency to control shipping at the Strait of Hormuz

Day 68: Trump threatens 'higher level' bombing of Iran if deal not agreed

Day 67: 'Project Freedom' paused 'for a short period': Trump

Day 66: UAE intercepts 12 ballistic missiles, 3 cruise missiles, 4 drones