US President Donald Trump on Sunday, 11 May sharply rejected Iran's response to a new American peace proposal aimed at ending the military conflict in the Gulf region, calling Tehran's position "TOTALLY UNACCEPTABLE" as hostilities continued around the Strait of Hormuz. The rejection marks a significant setback for diplomatic efforts brokered through Pakistani and Qatari mediators over the past week.

Trump's Reaction and the Peace Proposal

"I have just read the response from Iran's so-called 'Representatives.' I don't like it — TOTALLY UNACCEPTABLE! Thank you for your attention to this matter," Trump wrote in a post on Truth Social. He later accused Iran of "playing games with the United States" and warned that "They will be laughing no longer!"

The US had sent a 14-point proposal to Tehran last week through mediators, reportedly including demands tied to Iran's nuclear activities and regional security commitments. Iran's response arrived through Pakistani intermediaries, with Pakistani Prime Minister Shehbaz Sharif confirming receipt while declining to elaborate. "I can't go into more details," Sharif said.

What Iran Demanded

Iranian state media said Tehran's reply focused "exclusively on the cessation of hostilities around the region." Other Iranian outlets reported that Tehran demanded an official end to the war, reopening of the Strait of Hormuz, withdrawal of naval vessels enforcing a US blockade, lifting of sanctions, and an additional 30 days of negotiations. Iran also reportedly proposed that discussions on its nuclear programme be handled separately in future negotiations — a condition that appears to have been a key sticking point for Washington.

Military Confrontations in the Gulf

The diplomatic exchanges unfolded against a backdrop of intensifying military activity. According to reports, Iran attacked three US naval destroyers on Thursday, accusing them of entering waters over which Tehran claims control. Iran said it deployed ballistic missiles, cruise missiles, and drones, claiming the strikes caused "serious damage." The United States denied the claim, with US officials stating the destroyers sailed away unharmed.

The confrontation followed US strikes on two Iranian-flagged tankers that American officials said were attempting to breach a naval blockade near the Gulf of Oman. The US military subsequently struck targets on Qeshm Island and near Bandar Abbas along Iran's southern coast.

Regional Spillover and Diplomatic Efforts

Tensions spread beyond Iran's shores. Qatar's defence ministry said on Sunday that a commercial cargo vessel travelling from Abu Dhabi was struck by a drone off the coast of Doha, causing a small fire. On Saturday, US Secretary of State Marco Rubio and White House Middle East envoy Steve Witkoff met Qatari Prime Minister Mohammed bin Abdulrahman Al Thani to discuss efforts to end the conflict. The Qatari side said talks included Pakistani mediation efforts "aimed at reducing escalation that contributes to enhancing security and stability in the region."

The State Department later said Rubio and Qatari leadership discussed "the importance of continued close coordination to deter threats and promote stability and security across the Middle East."

UN Push and Outlook

Speaking on ABC News on Sunday, US Ambassador to the United Nations Mike Waltz said negotiations were moving "longer and slower" because Iran's "leadership has been so devastated and fractured." Waltz added that the US was pushing a new UN resolution stating that "Iran cannot do this. No country can do what Iran is doing in international waterways." With Washington's diplomatic patience visibly thinning and military incidents multiplying, the path to a negotiated settlement appears increasingly narrow.