Iran War Live Updates: Iran Lists Demands That Trump Deemed ‘Unacceptable’

Iran war demands: Trump rejects Tehran’s 4-point ceasefire plan

Muhammad Asghar | GlobalBeat

Tehran delivered a four-point list of ceasefire demands to Washington that President Trump dismissed as “totally unacceptable” on Sunday.

The document calls for immediate US withdrawal from the region, lifting of all sanctions, war crimes prosecutions for American commanders, and $50 billion in reconstruction funds.

The rejection pushes the two-week air campaign closer to a broader Middle East war as Iran’s missiles hit deeper into Israel and US bombers struck targets near Tehran. Oil markets opened 8 percent higher in Asia on the news.

Background

Washington and Tehran have fought through proxies since 1979 but never directly traded airstrikes until April 2026. The current exchange began when an Iranian drone killed 2 US Marines in Jordan, prompting Trump to order strikes on Iran’s nuclear facilities at Fordow and Natanz. Iran responded with ballistic missiles against US bases in Qatar and Kuwait, killing 3 American service members. Israel joined the US operation last week, bombing Iranian arms depots in Syria that Washington says supplied Houthi rebels.

Previous diplomatic efforts collapsed in 2025 after Trump reimposed “maximum pressure” sanctions and Iran enriched uranium to 90 percent weapons-grade purity. The Biden administration’s 2023 nuclear deal lasted 14 months before Tehran withdrew, citing Washington’s failure to guarantee European trade.

What’s Next

Iran’s Revolutionary Guard warned Sunday night that rejecting the demands would bring “immediate retaliation against US economic assets.” Tanker traffic through the Strait of Hormuz dropped 40 percent overnight as Lloyd’s of London suspended insurance for vessels in the waterway. Trump’s national security adviser told CBS that the president would address Congress Tuesday to request authorization for “expanded military options” should Iran refuse unconditional surrender.

The ceasefire proposal arrived through Omani intermediaries at 3 a.m. Eastern, according to three White House officials who reviewed the document. Iran’s foreign ministry demanded the United States withdraw all military forces from the Persian Gulf within 30 days, release $7 billion in frozen Iranian oil revenue, transfer five senior US commanders to The Hague for trial, and pay $50 billion in reconstruction funds for damage caused by American strikes.

Trump rejected the terms during an emergency Cabinet meeting at Camp David. “These people think we’re losers,” the president told reporters. “They’re not getting a dime, they’re not getting our troops out, and they’re sure as hell not getting our generals.”

The response triggered emergency meetings in Tehran where supreme leader Ayatollah Ali Khamenei convened his national security council. State television showed Khamenei telling military commanders that “resistance continues until the last American base burns.” Iran launched 12 ballistic missiles at Israel’s Palmachim airbase within hours, killing 2 Israeli airmen and wounding 14 others.

Oil traders reacted violently to the breakdown. Brent crude surged $6.40 to $97.30 per barrel in Singapore trading, its highest level since September 2022. The price spike added 18 cents to the average US gasoline price overnight, bringing the national average to $4.02 per gallon according to AAA. Saudi Arabia suspended all crude shipments through the Bab el-Mandeb strait after Houthi rebels damaged a Greek-flagged tanker with an Iranian-supplied missile.

European governments scrambled to distance themselves from Washington’s hardline stance. French President Emmanuel Macron called for “immediate de-escalation” and offered to host negotiations in Geneva. German Chancellor Friedrich Merz urged “restraint from all sides” but stopped short of criticizing Trump’s rejection. British Prime Minister Keir Starmer backed the US position, saying Iran’s demands were “designed to be refused.”

Israel expanded its bombing campaign beyond Syria for the first time, striking IRGC intelligence headquarters in Kermanshah province. The Israeli military released satellite photos showing damage to underground missile storage facilities. Defense Minister Israel Katz warned that “Tehran will pay an unbearable price” for continued rocket fire against Israeli civilians. Three Palestinians died when Iranian-supplied shrapnel landed in Gaza City.

Inside Iran, currency traders dumped rials for dollars as the war pushed the exchange rate past 610,000 per US dollar, down 12 percent from last week. Bread prices rose 25 percent in Tehran bazaars while the government imposed rationing on fuel. Protesters in Isfahan chanted “death to Khamenei” before riot police dispersed crowds with tear gas. The demonstrations marked the first significant anti-regime protests since the 2022 Mahsa Amini uprising.

Washington moved additional firepower into position as diplomacy failed. The aircraft carrier USS Theodore Roosevelt transited the Suez Canal toward the Persian Gulf, joining two other carrier groups already in position. The Pentagon ordered 2,000 Marines from the 26th Expeditionary Unit to reinforce Kuwait bases. B-2 stealth bombers arrived at Diego Garcia in the Indian Ocean, putting all of Iran within non-stop bombing range.