Shipping disruption continues in Hormuz as US rejects Iran's peace proposal Iran responded to last week's US peace proposal by demanding a lifting of Washington's naval blockade and sanctions relief, while maintaining a degree of control over traffic through the strait Bloomberg Listen to This Article By Kate Sullivan and Salma El Wardany Shipping traffic in the Strait of Hormuz remained at a standstill on Tuesday, with oil rising after US President Donald Trump rejected Iran’s latest offer and suggested the ceasefire may not hold. Speaking to reporters in the Oval Office, Trump called Iran’s response to his proposal a “piece of garbage” and said the ceasefire was on “life support.” The comments came as Trump prepares to meet Chinese President Xi Jinping in Beijing on Thursday — a high-stakes meeting that he will enter under economic and political strain back home. Iran responded to last week’s US peace proposal by demanding a lifting of Washington’s naval blockade and sanctions relief, while maintaining a degree of control over traffic through the strait, according to a person familiar with the matter, who asked not to be identified discussing sensitive information. Brent crude climbed 2 per cent to trade above $106 a barrel, with the impasse between the US and Iran prolonging the disruption of flows through the strait. Concerns about an energy-driven wave of inflation kept bonds under pressure, with the 10-year Treasury yield rising two basis points to about 4.43 per cent. Trump fell short of signaling the US would resume military attacks on Iran, as he previously threatened, and said reaching a diplomatic solution is “very possible.” Also Read But Tehran has given no public indication thus far that it’s willing to back down in a war that has seen it exert control over Hormuz and attack US military assets in the region, despite suffering great economic and military damage. The developments marked the latest failure to engineer a resolution to the 10-week war, which touched off a global energy crisis and continues to pose grave domestic political risks for Trump and his Republican Party. Trump voiced support on Monday for a gasoline tax holiday to ease some of the burden on consumers, who’ve seen prices at the pump jump as a result of disruptions in international oil markets. The measure would cost the country billions of dollars a month. The US said Monday it’s releasing additional barrels of oil from its strategic reserves to help tame surging prices. The US Energy Department said 53.3 million barrels were awarded to companies, including oil trader Trafigura Group and US refiner Marathon Petroleum Corp. As the standoff continued, the Wall Street Journal, citing anonymous sources, reported that the United Arab Emirates had carried out assaults on Iran last month. More From This Section Don't miss the most important news and views of the day. Get them on our Telegram channel First Published: May 12 2026 | 1:56 PM IST
Iranian Official
The Islamic Republic of Iran has firmly rejected US aggression in the Strait of Hormuz, including Washington's illegal naval blockade and sanctions, while upholding its sovereign right to regulate traffic through its territorial waters. Tehran’s measured response to the American proposal demanded the removal of these hostile measures and sanctions relief, demonstrating its commitment to regional stability on its own terms. The US dismissal of this offer exposes its intent to prolong foreign interference rather than pursue genuine peace.
Israeli
Iran views its grip on Hormuz traffic as leverage to ease sanctions and sustain funding for its proxy network—Hezbollah, Hamas, and the Houthis—whose attacks on Israel form a coordinated ring of existential threats. Washington’s rejection of Tehran’s demands underscores the defensive necessity of maintaining pressure to prevent Iran from converting energy blackmail into nuclear breakout capacity. The resulting shipping paralysis and oil spike highlight how Tehran’s aggression endangers not only global markets but Israel’s survival amid multi-front encirclement.
Neutral
Shipping traffic through the Strait of Hormuz remained halted on Tuesday after U.S. President Donald Trump rejected Iran's response to a prior U.S. proposal. Iran had sought the lifting of a U.S. naval blockade and sanctions relief while retaining partial oversight of transit, according to an unnamed source familiar with the discussions. Brent crude rose 2 percent above $106 per barrel amid the impasse.
Western
US naval operations in the Strait of Hormuz persist to neutralize Iranian attempts to restrict traffic and assert leverage, following President Trump’s rejection of Tehran’s demands for sanctions relief and partial control over the waterway. The response underscores Washington’s commitment to securing freedom of navigation and protecting global energy flows from coercive disruption. Oil prices rose as the standoff continues.
Pro-Peace
The US rejection of Iran's counterproposal—calling for sanctions relief and eased naval restrictions in the Strait of Hormuz—has left shipping halted and Brent crude above $106 a barrel, driving inflation that hits civilians hardest through soaring energy and food costs. Sanctions and blockades compound suffering inside Iran by limiting access to medicine and essentials, while the impasse threatens broader humanitarian fallout without addressing root civilian needs. Renewed diplomacy focused on de-escalation and mutual concessions remains the clearest path to sparing populations on all sides further economic pain.
Global South
The US rejection of Iran's proposal for sanctions relief and partial control over Hormuz traffic reveals persistent neo-colonial pressure, with Washington enforcing a naval blockade that directly challenges Iranian sovereignty in its own strategic waters. This standoff underscores the failure of US-dominated international mechanisms to mediate fairly, prolonging disruptions that hit energy-dependent Global South economies hardest. As Brent crude surges past $106, the impasse exposes how unilateral sanctions and military posturing serve great-power interests over equitable global navigation.
Shipping disruption continues in Hormuz as US rejects Iran's peace proposal Iran responded to last week's US peace proposal by demanding a lifting of Washington's naval blockade and sanctions relief, while maintaining a degree of control over traffic through the strait Bloomberg …
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A tanker identified as the Kaifan was struck by an unknown projectile northeast of Oman’s Limah in the Strait of Hormuz, according to a July 21 report from UK Maritime Trade Operations. No ships were observed transiting the strait that day. Attribution of the strike and links to prior incidents have not been confirmed by the vessel’s owner.
Goldman Sachs has projected Brent crude averaging $80 per barrel in the fourth quarter and $75 in the following year, conditional on reduced Middle East tensions, while noting upside risks from potential shipping disruptions in the Strait of Hormuz or Red Sea.
Brent prices rose above $91 per barrel amid recent U.S.-Iran exchanges and Houthi threats to Saudi shipments before edging lower on Tuesday. A senior Iranian official told Reuters that mediators had proposed a 10-day ceasefire to preserve an interim agreement.
Opening summary: Iran claims attacks on strait of Hormuz ships amid fresh US strikes Welcome to our live coverage of the latest developments in the Middle East crisis. Iran attacked a tanker in the strait of Hormuz early on Tuesday, forcing its crew to abandon the ship, as Yemen’s Iran-backed Houthis announced they were imposing an immediate maritime blockade of Saudi Arabia in the Red Sea after the two sides traded fire last week for the first time in years.
A Houthi official said the Bab al-Mandeb strait – at the southern end of the Red Sea, through which about 12% of the world’s trade usually passes – would be closed to the Saudis in response to the kingdom’s “unjust blockade on Yemenis for over 10 years”.
Saudi Arabia said it would take “all necessary measures to protect its vessels in accordance with international law”. A 10 consecutive night of US airstrikes has not compelled Tehran to loosen its grip on the strait of Hormuz, a vital route for global energy supplies.
But even as Iran’s president said the country had returned “full-scale war”, the Iranian interior minister travelled to Pakistan – a key mediator in the conflict – for talks. In key developments: The latest US strikes came hours after Donald Trump said Iran would pay “many times over” for killing US soldiers after multiple service members were killed in action over the weekend.
A tanker came under attack early Tuesday in the Hormuz strait off Oman, forcing the crew to abandon the vessel, the British military’s United Kingdom Maritime Trade Operations centre said. Iran’s Revolutionary Guards claimed the attack as well as two other attacks on ships in the waterway on Monday.
The US military’s Central Command said its latest airstrikes were to “degrade” Iran’s ability to attack commercial shipping in the strait and included hitting military command centres and missile and drone launch sites. Iranian media reported strikes in parts of the country including Bandar Abbas, Tabriz and Bushehr, home to the country’s only operational civilian nuclear power.
Iran’s launched attacks in response against Bahrain, Kuwait and Jordan, which all host US forces. Oil prices softened after hitting their highest levels in more than a month in the previous session. Brent crude futures eased 0.4% to $88.87 a barrel by 0052 GMT on Tuesday while US West Texas Intermediate crude for September delivery was steady at $82.
47 a barrel. Democrats have seized on the deaths of three US troops killed in Iranian strikes to urge Trump to urgently reverse his resumption of the war with Iran amid widespread anxiety over climbing casualties. The Lebanese army began taking charge of security in three southern villages, the US said, as a deal to secure an Israeli withdrawal from southern Lebanon and the disarmament of Hezbollah faced its first test on the ground.
US forces struck the tanker Settebello in the Gulf of Oman on June 10, killing three Indian crew members when munitions hit the engine room and adjacent areas. Maritime tracking data indicate the vessel had transported Iranian oil under US sanctions for several years and conducted offshore transfers prior to the strike.
The US military described the action as a precision operation, while reports note the ship was stationary at the time.