WASHINGTON - President Donald Trump warned the ceasefire in the Middle East war was on "life support" after rejecting the latest counteroffer from Iran, which said its military stood ready to respond to any act of aggression.
The president's angry reaction to Iran's position -- delivered in response to a US proposal -- sent oil prices soaring and dashed hopes that a deal could be quickly negotiated to reopen the Strait of Hormuz to commercial shipping.
After slamming the reply as "TOTALLY UNACCEPTABLE," Trump insisted the United States would see a "complete victory" over Iran, adding that the truce which has largely halted fighting in the Gulf for over a month was on its last legs.
"The ceasefire is on massive life support, where the doctor walks in and says, 'Sir, your loved one has approximately a one percent chance of living,'" he told reporters on Monday.
Iranian parliamentary speaker Mohammad Bagher Ghalibaf, who served as chief negotiator in previous talks with Washington, said shortly afterwards that his country was prepared "for any eventuality."
"Our armed forces are ready to respond and to teach a lesson for any aggression," he wrote on X. "A bad strategy and bad decisions always lead to bad results -- the world already understands this."
The developments unnerved global energy markets already thrown into chaos by the war and the overlapping blockades imposed by Iran and the US in the Strait of Hormuz -- a vital conduit for oil and gas shipments.
"The energy supply shock that began in the first quarter is the largest the world has ever experienced," the CEO and president of Saudi oil giant Aramco, Amin Nasser, told investors.
"If the Strait of Hormuz opens today, it will still take months for the market to rebalance, and if its opening is delayed by a few more weeks, then normalisation will last into 2027."
Aside from energy, the world also faces a shortage of fertiliser -- much of which comes from Gulf ports -- and hence food for tens of millions of people.
Jorge Moreira da Silva, executive director of the United Nations Office for Project Services (UNOPS), told AFP there were just a few weeks left to avert a potentially "massive humanitarian crisis."
"We may witness a crisis that will force 45 million more people into hunger and starvation."
Trump did not say what had offended him in Iran's response, but Tehran's foreign ministry said it had called for an end to the US naval blockade of its ports and to the war "across the region" -- implying a halt to Israel's strikes targeting Hezbollah in Lebanon.
Crucially, ministry spokesman Esmaeil Baqaei told reporters Iran demanded the "release of assets belonging to the Iranian people, which have for years been unjustly trapped in foreign banks."
- AFP