by Stefan J. Bos, Worthy News Chief International Correspondent
WASHINGTON/TEHRAN/JERUSALEM (Worthy News) – U.S. President Donald J. Trump and Iran rejected each other’s latest peace proposals aimed at ending the 10-week war, sending the U.S. dollar higher against major currencies as investors sought safety amid renewed Middle East uncertainty.
“I have just read the response from Iran’s so-called ‘Representatives,’” Trump wrote on social media, calling Tehran’s proposal “TOTALLY UNACCEPTABLE.”
The dollar, viewed by investors as a safe haven during the conflict, strengthened against all other major Group-of-10 currencies as fears grew that tensions could escalate further.
According to sources familiar with the talks, Iran offered to transfer part of its highly enriched uranium stockpile to a third country while diluting another portion. However, Tehran reportedly rejected demands to dismantle its nuclear facilities and insisted any transferred uranium must be returned if negotiations collapse.
Iran’s semi-official Tasnim news agency denied parts of the reporting and said Tehran was demanding an immediate end to the war, the lifting of U.S. sanctions on oil exports, access to frozen Iranian assets, and an end to the U.S. blockade in the Gulf of Oman.
STRAIT OF HORMUZ
Iranian state media also rejected Trump’s proposal as “tantamount to surrender” and said the United States should compensate Iran for war damages.
The latest exchange came amid uncertainty over the Strait of Hormuz, a key shipping route for global oil and gas supplies.
Despite a ceasefire formally in place since April 8, regional tensions remained high after a drone strike briefly set a cargo vessel ablaze near Qatar in the Persian Gulf. The United Arab Emirates and Kuwait also said they intercepted hostile drones Sunday.
Israeli Prime Minister Benjamin Netanyahu warned the conflict was “not over,” saying more action was needed to dismantle Iran’s nuclear capabilities and remove its stockpile of highly enriched uranium.
Trump has repeatedly insisted Iran must never obtain a nuclear weapon, while also signaling he wants to avoid a prolonged conflict as rising oil prices put pressure on U.S. consumers ahead of November’s midterm elections.
MARKETS REACT
Regional authorities say thousands of people have been killed or injured since the conflict began 10 weeks ago.
Saudi Aramco, the world’s largest oil company, warned Sunday that energy markets could take months to stabilize even if the Strait of Hormuz reopens immediately.
Despite the tensions, Asian stock markets rose Monday as investors continued pouring money into artificial intelligence-related shares.
MSCI’s Asian equities index climbed about 1 percent, while technology-linked stocks in South Korea surged sharply. However, oil prices jumped, with Brent crude nearing $105 a barrel amid fears the Strait of Hormuz could remain disrupted.
“We see markets start to look past current war volatility, in the absence of major escalations,” said Anna Wu, a strategist at VanEck, a U.S.-based international investment management firm overseeing exchange-traded funds and other assets for investors worldwide.
Still, analysts warned that renewed oil price spikes could fuel inflation and complicate central bank policies worldwide.
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