Iran war truce fragile as US rejects Tehran’s latest offer

WASHINGTON — U.S. President Donald Trump is showing signs of frustration at a lack of progress in negotiations to end the 10-week war with Iran, as the Strait of Hormuz remains all but closed to vital energy supplies and oil prices continue to rise.

Trump told reporters Monday that the response from Tehran to his latest offer was a “piece of garbage” and the ceasefire is on “life support.” But he fell short of threatening to resume military attacks, instead saying a diplomatic solution is “very possible.”

Iran’s capitulation is “just a question of time” and the U.S. doesn’t have to rush, Trump told the Sid & Friends In The Morning radio show on Tuesday.

But Tehran has given no indication that it’s willing to back down or budge on its key demands, which include the end of the U.S. Navy’s blockade of Iranian ports, sanctions relief and maintaining a degree of control over traffic through Hormuz, according to a person familiar with the matter.

Brent crude climbed 4% to trade above $108 a barrel on Tuesday, as the impasse prolongs the disruption of crude flows through the strait.

“The U.S. and Iran remain too far apart for a deal,” Bloomberg Economics’ Dina Esfandiary and Becca Wasser said. “If neither side is willing to make concessions, then a lasting peace deal will remain elusive, sporadic increases in intensity and protracted war the most likely scenario.”

Trump is set to meet Chinese President Xi Jinping in Beijing on Thursday and is expected to address the country’s approach to Iran, according to a U.S. official who briefed reporters ahead of the trip. As the buyer of the bulk of Iran’s crude, China is in a unique position to exert some diplomatic sway and the meeting may provide a test as to its willingness.

The visit is taking place with Trump under economic and political strain, as high fuel prices threaten to hit Republicans in the November midterm elections. Trump said Monday he’ll seek a gasoline tax holiday to ease some of the burden on consumers, but it was unclear how much of the cut would be reflected at the pump. The measure would cost the country billions of dollars a month.

Defense Secretary Pete Hegseth was questioned by lawmakers on Tuesday over the growing costs of the Iran war, as part of a hearing on the administration’s unprecedented request for $1.5 trillion in defense spending for fiscal 2027. He refused to provide a breakdown of costs and offer any clarity on operational plans.

“We have a plan to escalate if necessary, we have a plan to retrograde if necessary, we have a plan to shift assets,” Hegseth said, saying he didn’t want to offer those details in a public setting.

Jules Hurst, the Pentagon’s acting comptroller, told lawmakers the estimated cost of the war is now closer to $29 billion, higher than his previously calculated $25 billion price tag — a figure questioned as unrealistically low.

Traffic through the Strait of Hormuz remains broadly halted, with sporadic attacks on tankers keeping shipowners wary of attempting to exit the Persian Gulf. Qatar is asking ships at its main liquefied natural gas export facility to turn off their transponders, according to people familiar with the matter, with one calling it a safety measure. A cargo ship was targeted by a drone in Qatari waters last week.

The United Arab Emirates retaliated against Iranian attacks on its territory earlier in the war, according to people familiar with the matter, coordinating with Israel as the two countries deepen security ties. The UAE, one of only a few Arab countries to formally recognize Israel, was targeted by Iran more than any other country in the region.

On Tuesday, Washington’s Ambassador to Israel, Mike Huckabee, said Israel had sent Iron Dome missile defense batteries to the UAE during the war, along with personnel to operate them.