Trump Declares Iran Truce 'On Life Support' After Rejecting 'Garbage' Counterproposal

On Day 74 of the Iran war, U.S. President Donald Trump declared the ceasefire 'on life support' after rejecting Iran's latest counterproposal, which he dismissed as 'garbage.' The May 12 remarks came as Iranian forces shot down a U.S. MQ-9 drone over central Iran and Tehran issued sweeping demands for ending the conflict.

The Details

Iran's response to the U.S. peace proposal called for an end to the war on all fronts, including Lebanon, demanded compensation for war damage, an end to the U.S. naval blockade, and emphasized Iranian sovereignty over the Strait of Hormuz. Speaking to reporters, Trump said: 'I would call it the weakest right now, after reading that piece of garbage they sent us. I didn't even finish reading it.'

Iranian state media said Tehran is ready for 'any aggression' from the United States. The downing of the MQ-9 drone over central Iran marks a direct escalation in the air domain. Meanwhile, U.S. strikes killed 12 people in Gaza and 7 in Lebanon on May 11, according to Al Jazeera. Hezbollah retaliated by firing 30 rockets into Israel.

On the economic front, Brent crude oil futures climbed above $104.50 a barrel on May 12 as the Strait of Hormuz remains largely closed. The U.S. Department of the Treasury's Office of Foreign Assets Control designated 12 individuals and entities on May 11 for enabling the Islamic Revolutionary Guard Corps' sale and shipment of Iranian oil to the People's Republic of China. Trump said he would suspend the federal tax on gasoline to reduce fuel prices, stating: 'As soon as this is over with Iran, as soon as it's over, you're going to see gasoline and oil drop like a rock.'

A Reuters/Ipsos poll completed May 11 found that two-thirds of Americans, including one-third of Republicans and nearly all Democrats, think Trump has not clearly explained why the United States has gone to war.

Context

The war began on February 28, 2026. The Strait of Hormuz, which previously carried one-fifth of the world's oil and liquefied natural gas shipments, has been largely closed since the conflict started. OPEC oil output dropped further in April 2026 to the lowest level in more than two decades. Pakistan has been mediating talks between the U.S. and Iran since the start of the war. Turkey's Foreign Minister Hakan Fidan is holding talks with Qatar on ensuring navigational safety in the Strait of Hormuz. NATO allies are refusing to send ships to reopen the strait without a full peace deal and an internationally mandated mission.

What's Next

Trump is expected to arrive in Beijing on May 14, where Iran is set to be among topics discussed with Chinese President Xi Jinping. Qatar and Turkey continue diplomatic efforts on Hormuz navigational safety. Energy markets will be watching whether any new proposal emerges to break the deadlock, as the closure of the Strait of Hormuz keeps global oil and LNG supply under pressure.