Iran Rejects US Proposal, Demands Sanctions Lift and Hormuz Control

Iran has rejected the Trump administration's latest proposal, with its response described as 'totally unacceptable' by US officials. Iran demands an immediate end to the war, lifting of all sanctions, release of blocked assets, and Iranian management of the Strait of Hormuz. The US and Israel remain unable to change the outcome militarily, with limited options due to a small navy, depleted weapons, and host restrictions on Gulf bases. A confirmed summit between Trump and Xi Jinping on May 14-15 in Washington delays any major escalation. Meanwhile, physical oil prices have eased as traders back away, though Brent futures jumped above $105 a barrel after Trump's rejection. Gasoline prices in Midwestern US states have surged up to 72% in Ohio, threatening Republican midterm prospects. Iran's Tasnim news agency disputed a Wall Street Journal report on the response's details. An F-35 experienced an emergency over the Gulf of Oman, and Iran warned of heavy retaliation against any aggression. China confirmed the summit at the last minute, with analysts viewing it as a concession by Xi. The Strait of Hormuz remains closed, with Iran asserting control over cables in Omani waters, though Oman has not responded.