President Donald Trump rejected a 14-point peace proposal from Iran, calling the terms unacceptable and declaring hostilities with the nation terminated.

The move signals a volatile shift in diplomatic relations as the U.S. balances internal economic pressures with military obligations in Europe and the Middle East.

Trump said he threw away the peace proposal after reading the first sentence. While some reports suggested the president would review the new deal, he later said a successful agreement remained unlikely [1], [2].

The decision to terminate hostilities coincided with the 60-day deadline set by the War Powers Resolution [4]. Despite this declaration, the president said the conflict remained a significant concern.

Economic impacts of the tension have reached American consumers. On April 30, 2026, U.S. gasoline prices reached $4.30 per gallon [3]. Trump said gasoline prices will drop after the Iran war [3].

In a related military shift, the Pentagon ordered the withdrawal of around 5,000 U.S. troops from Germany [5]. This troop movement occurs as the U.S. continues to monitor the Strait of Hormuz, where the administration has warned shipping companies against paying tolls to Iran [5].

The 14-point plan submitted by Tehran aimed to establish a ceasefire, and a path toward peace [2]. However, the administration said the proposal did not meet U.S. requirements for a sustainable resolution.

He threw away Tehran’s peace proposal after reading the ‘unacceptable’ first sentence.

The termination of hostilities based on the War Powers Resolution deadline suggests a legal maneuver to reset the conflict's status rather than a diplomatic breakthrough. By dismissing the 14-point proposal while simultaneously withdrawing troops from Germany and addressing high fuel costs, the administration is attempting to pivot its military posture and economic narrative amid persistent instability in the Strait of Hormuz.