President Donald Trump branded Iran's response to a U.S. peace proposal as "totally unacceptable" in a social-media post on Sunday [1, 2].
The breakdown in negotiations increases the risk of escalation in the Middle East, particularly concerning military presence in the Strait of Hormuz. This diplomatic friction follows a period of heightened tension regarding the ongoing regional war and the movement of foreign warships.
Iran rejected the latest U.S. peace proposal and warned that it would not hold back from retaliation against any new U.S. strikes [1, 4]. Tehran also said it would not allow more foreign warships to enter the Strait of Hormuz [1, 4].
Trump responded to these terms on Sunday, May 10, 2026, through his social-media account [1, 2]. "Totally unacceptable," Trump said [1]. He further noted that the U.S. would not accept Iran's terms, describing them as completely unacceptable [3].
Market reactions to the diplomatic stalemate were immediate. The price of gold fell to around $4,690 per ounce during the early Asian session on Monday [5].
The dispute centers on the strategic control of the Strait of Hormuz, and the terms of a ceasefire in the Middle East war [1, 4]. The U.S. administration continues to seek a resolution, but the current rejection suggests a widening gap between Washington and Tehran.
“"Totally unacceptable"”
The rejection of the peace proposal signals a return to hardline diplomacy between the U.S. and Iran. By linking the peace terms to the presence of warships in the Strait of Hormuz, Iran is leveraging its geographic control over a critical global oil transit point to exert pressure on the U.S. The immediate dip in gold prices reflects a volatile market reacting to the potential for renewed military conflict or a shift in geopolitical stability.
