Trump Rejects Iran's Peace Terms as Global Markets Brace for Uncertainty

ft.com · 2026-05-10
Trump Rejects Iran's Peace Terms as Global Markets Brace for Uncertainty

Former President Donald Trump has rejected a peace proposal from Iran that sought an end to regional hostilities in exchange for sanctions relief and the unfreezing of state assets. Trump labeled the terms "unacceptable," stalling efforts to normalize relations or alleviate economic pressure on Tehran. The Iranian proposal, which aimed to secure essential liquidity for its struggling domestic economy, was dismissed by the U.S. side as a transactional maneuver that failed to address broader concerns regarding regional security and proxy activity. This development has triggered volatility in global energy markets, as traders anticipate a prolonged period of economic isolation for Iran and heightened regional tension. The breakdown reflects a deepening divide over the conditions for diplomatic engagement, leaving international mediators with few options as both sides remain entrenched in their original positions. As the sanctions regime continues, the outlook for a peaceful resolution remains uncertain, with the global community bracing for sustained geopolitical friction.