"Totally Unacceptable": Trump Rejects Iran's Peace Response as Ceasefire Frays and Gulf Braces for New Conflict

11 May 2026 | Tehran / Washington / Gulf of Oman

TEHRAN, Iran – The ceasefire is gasping for air. And Donald Trump just pulled the plug on the peace talks.

The US president has rejected Iran's response to Washington's peace proposal as "totally unacceptable," raising the possibility of fresh conflict as the month-old ceasefire showed signs of fraying. Drone strikes were reported across the Gulf on Sunday – hitting the UAE, Kuwait, and Qatar – while a South Korean-operated vessel was damaged in an explosion in the Strait of Hormuz.

"I have just read the response from Iran's so-called 'representatives'," Trump posted on Truth Social. "I don't like it – totally unacceptable."

Iranian foreign ministry spokesperson Esmail Baghaei said Iran is only looking to ensure its rights.

"Whenever We Are Forced to Fight, We Will Fight": Iran's Warning

Iranian foreign ministry spokesperson Esmail Baghaei said Tehran's demands included an end to the war, lifting of US sanctions, an end to the US naval blockade, and the release of frozen Iranian assets. "Safe passage through the strait of Hormuz and establishing security in the region and Lebanon were other demands of Iran," he said.

"Whenever we are forced to fight, we will fight, and whenever there is room for diplomacy, we will seize that opportunity," Baghaei told a news briefing. He called the US demands "unreasonable" and suggested that stability in the region had been undermined by Trump's rejection.

Iran's deputy foreign minister warned against a planned French-British effort to support maritime security in the strait. Tehran has insisted that all ships passing through the strait coordinate with its armed forces and pay a $2 million toll.

Netanyahu: "It's Not Over" – The Nuclear Threat

Israeli Prime Minister Benjamin Netanyahu warned the war would continue as long as Iran had a stockpile of highly enriched uranium (HEU). "It's not over, because there's still nuclear material – enriched uranium – that has to be taken out of Iran," he told CBS's 60 Minutes.

Asked how the HEU should be removed, Netanyahu said: "You go in and you take it out," adding that the best way would be to enter Iran to secure the fissile material as part of an agreement. He said Trump had told him he wants "to go in there."

Trump appeared to take a more relaxed view, suggesting satellite surveillance was sufficient for now. "We'll get that at some point – we have it surveilled," he said. "If anybody got near the place, we will know about it – and we'll blow them up."

Drone Strikes Across the Gulf: UAE, Kuwait, Qatar Hit

The ceasefire showed new signs of strain on Sunday as drone strikes were reported across the Gulf. The United Arab Emirates and Kuwait reported drone incursions in their airspace, and a drone attack started a small fire on a ship off the coast of Qatar.

Another drone strike was reported at a camp used by an Iranian Kurdish rebel group near Erbil in north-eastern Iraq. Qatar denounced the strike on a ship in its territorial waters as a "serious escalation." The UAE defence ministry said it had shot down the drones which entered its airspace, which it said were Iranian.

South Korean Vessel Attacked: "We Condemn This in the Strongest Terms"

South Korea condemned an attack against a cargo ship operated by a Korean shipper on 4 May in the strait of Hormuz. The vessel, Namu, operated by HMM Co., was damaged after an explosion and fire.

The South Korean-operated vessel HMM Namu is docked after being damaged from a fire after an explosion in the strait of Hormuz.

"We condemn this in the strongest terms," Wi Sung-lac, the South Korean presidential national security adviser, told reporters. South Korea's defence minister is due in Washington for talks with US Defense Secretary Pete Hegseth on Monday, with the energy crisis looming over Seoul's trade-dependent economy.

UK and France Lead 40-Nation Meeting: "Ready to Act"

The UK and France will host a multinational meeting of defence ministers involving 40 countries tomorrow to discuss military plans to restore trade flows through the strait of Hormuz. UK Defence Secretary John Healey said: "When I co-chair this meeting of nations from around the world, our job will be to make sure we are not just talking, we are ready to act."

Healey has directed HMS Dragon to the Middle East. The UK has already announced the deployment of the destroyer to the region. Iran has threatened to strike British and French warships in the strait if they try to help reopen the strategic waterway.

French President Emmanuel Macron subsequently clarified that France had "never envisaged" a naval deployment but rather a security mission that would be done in coordination with Tehran.

Saudi Aramco Profits Jump 26% Despite Conflict

Saudi Arabia's state oil company reported a 26% jump in profits in its first quarter as its east-west pipeline allowed it to ship millions of barrels of oil out of the Gulf despite the conflict. Profits at Saudi Aramco hit $33.6 billion in the first three months of the year, while revenue rose nearly 7% to $115.5 billion.

An oil processing facility at Saudi Aramco's Shaybah oilfield in the Rub' al-Khali (Empty Quarter) desert.

Amin Nasser, the company's president and chief executive, said: "Our east-west pipeline, which reached its maximum capacity of 7 million barrels of oil per day, has proven itself to be a critical supply artery, helping to mitigate the impact of a global energy shock."

Aramco said it would maintain its quarterly dividend at $21.9 billion. The boost in profits came even as the company grappled with attacks on its infrastructure and a halt to exports through its Gulf ports.

What Comes Next?

The diplomatic path has hit a wall. Trump has spoken with Netanyahu. Iran has warned it is prepared to fight. Drone strikes are escalating. And 40 nations are preparing to discuss military action.

"Whenever we are forced to fight, we will fight," Baghaei said.

The ceasefire holds – for now. But the clock is ticking, and the region is bracing.

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