Iran hardens terms before Trump ultimatum

Iran said on Monday it wanted a durable end to the war with the United States and Israel rather than a temporary truce, rejecting pressure to reopen the Strait of Hormuz on Washington’s timetable as President Donald Trump warned the country could be “taken out” if it failed to meet his Tuesday night deadline for a deal. Tehran’s stance underscored how far apart the sides remain even as intermediaries continue to press for a formula to stop a conflict that has shaken energy markets, strained Gulf security and raised fears of a wider regional rupture.

Trump said the deadline was final and signalled that failure to comply could trigger broad attacks on Iranian infrastructure. His remarks sharpened a threat that has hovered over talks for days, with Washington demanding that Iran accept terms tied not only to its nuclear posture but also to freedom of navigation through Hormuz, the narrow waterway that links Gulf producers to world markets. Tehran, by contrast, has insisted that any arrangement must amount to a lasting settlement rather than a short pause that could leave it exposed to renewed attacks once the immediate pressure eases.

That gap has become the central obstacle in negotiations. Reuters and other outlets reported that Iran conveyed a counter-position through regional mediators, arguing that a ceasefire without binding political and security guarantees would not end the conflict in any meaningful sense. The demand reflects deep mistrust in Tehran after weeks of warfare and repeated threats from Washington and Israel. Trump acknowledged that Iran’s message represented movement, but said it fell short of what the United States required.

The dispute over Hormuz is more than symbolic. The strait normally handles about a fifth of global oil and liquefied natural gas flows, making it one of the world’s most sensitive energy chokepoints. Disruption there has already sent crude prices sharply higher, re-routed cargoes and forced refiners in Asia and Europe to compete for replacement barrels from the United States, Africa and elsewhere. Even producers with alternative routes have faced higher costs and elevated physical risk as insurers, shippers and traders price in the possibility of further attacks.

Oil prices rose again ahead of the deadline, with traders watching not only the diplomatic exchanges but also the military signals around the Gulf. Iraq has said it could restore exports to pre-war levels within about a week if Hormuz reopens, an indication of how much supply remains stranded by the standoff. Gulf equities have also turned volatile, with investors trying to judge whether the confrontation will produce a negotiated opening for shipping or another bout of escalation that could damage infrastructure across the region.

Diplomatic efforts have not stopped. Pakistan, Egypt and Turkey have all been cited as intermediaries in efforts to bridge the divide, while the United Nations Security Council is weighing a watered-down resolution intended to protect commercial shipping without explicitly authorising force. That softer approach reflects resistance from powers including China and Russia to any move that could widen the conflict, but it also shows the limits of outside leverage when the principal actors remain committed to sharply different endgames. For Iran, reopening Hormuz before a broader settlement appears to carry strategic and domestic political costs. For Trump, backing away from a public deadline would risk appearing weak after days of maximalist rhetoric.

Military pressure has continued alongside the diplomacy. Israel issued fresh warnings to civilians in Iran to avoid rail infrastructure, signalling the prospect of additional strikes. The conflict itself dates back to February 28, according to multiple current reports, and has since drawn in regional actors, disrupted communications inside Iran and widened the economic fallout far beyond the battlefield. IMF Managing Director Kristalina Georgieva told Reuters that the war was likely to mean slower growth and higher inflation, with poorer energy-importing countries particularly vulnerable if supply disruptions persist.