President Donald Trump said on Sunday that Iran's response to a U.S. peace proposal is "totally unacceptable" [1].

The rejection marks a critical breakdown in negotiations as the conflict enters day 73 [4]. The dispute centers on the Strait of Hormuz, a vital global shipping lane, and threatens to undermine recent efforts to end hostilities.

Iran rejected the U.S. peace proposal on Sunday [1, 5]. The Iranian government insisted on the recognition of its sovereignty over the Strait of Hormuz, a condition the U.S. administration refuses to meet [2, 3].

"We will not accept this counter‑proposal," Trump said to reporters [2].

The diplomatic tension follows a period of fluctuating stability. A two-week ceasefire had been announced [6], and the White House previously asserted to Congress that hostilities had terminated [7]. However, other reports indicate the ceasefire remained shaky and was tested again on Sunday [2].

Trump had previously expressed dissatisfaction with the Iranian approach. "I'm not satisfied with Iran's latest proposal," Trump said on Saturday [8].

Despite the current impasse, Iran said on Monday that it wants a lasting end to the war [9]. This statement comes as the region monitors a 60-day deadline for the termination of hostilities [7].

The U.S. maintains that any lasting agreement must ensure safe passage through the Strait of Hormuz without Iranian sovereign control [6].

"Iran's response is totally unacceptable," President Donald Trump said.

The clash over the Strait of Hormuz highlights a fundamental disagreement over international maritime law and regional control. By rejecting Iran's demand for sovereignty over the strait, the U.S. is prioritizing global trade access and naval freedom of movement over a quick diplomatic resolution, increasing the risk that the 60-day deadline for ending hostilities will pass without a formal agreement.