US President Donald Trump on Monday warned that the fragile ceasefire in the Middle East conflict was on “life support” after rejecting Iran’s latest counterproposal to Washington’s peace initiative. The sharp exchange between the two sides has raised fears of renewed conflict in the Gulf region, sending global oil prices higher and increasing concerns over the future of maritime trade through the Strait of Hormuz.

Speaking to reporters, Trump described the truce as being close to collapse and criticised Tehran’s response as “totally unacceptable”. He insisted the United States would ultimately secure a “complete victory” over Iran and suggested that negotiations had reached a critical stage. The latest developments have dimmed hopes of a quick diplomatic breakthrough that could ease tensions and restore normal commercial shipping through the strategically vital waterway.

Iran responded with strong warnings of its own, with parliamentary speaker Mohammad Bagher Ghalibaf declaring that the country’s armed forces were prepared for “any eventuality”. In a statement posted on social media, he said Iran was ready to respond decisively to any aggression. Iranian officials also reiterated demands for the lifting of US naval restrictions and broader sanctions relief, including the release of Iranian assets frozen in foreign banks for years.

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The escalating rhetoric has further rattled global energy markets already affected by months of conflict and restrictions in the Strait of Hormuz, a key route for global oil and gas exports. Saudi energy giant Saudi Aramco warned that the ongoing disruption represented one of the largest energy supply shocks in modern history. Company chief Amin Nasser said even if the strait reopened immediately, markets could take months to stabilise, while prolonged delays could extend the disruption into 2027.

International organisations have also warned about the humanitarian and economic consequences of the prolonged standoff. The United Nations Office for Project Services cautioned that disruptions to Gulf shipping could trigger shortages of fertiliser and food supplies worldwide, potentially pushing millions more people into hunger. Iranian officials, meanwhile, defended their negotiating stance, arguing that Tehran was only demanding its “legitimate rights” and not seeking additional concessions from Washington.

The diplomatic deadlock has also renewed concerns over possible military escalation in the Gulf. Iran has reportedly increased restrictions on maritime traffic and warned that any attack on its vessels would trigger retaliatory action against American ships and military bases in the region. Trump has said the US is considering reviving naval escort operations for commercial vessels in the Strait of Hormuz, although regional powers, including Saudi Arabia, have reportedly expressed concerns that such measures could further escalate tensions.

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