President Trump escalated geopolitical tensions on Saturday by hinting at a possible resumption of military action against Iran if the country “behaves badly,” according to Axios.
As both countries continue to exchange drafts of a framework agreement, Trump is reportedly considering new strikes to break through the current diplomatic impasse.
The administration is currently reviewing Tehran's 14-point proposal, which requires a one-month deadline for the resumption of the Strait of Hormuz and the lifting of the U.S. naval blockade.
Under Iran's terms, negotiations on its nuclear program will only begin once a permanent ceasefire is achieved in both Iran and Lebanon.
Military preparations appear to be accelerating amid these diplomatic obstacles, as CENTCOM Commander Admiral Brad Cooper recently briefed the President on updated strike plans.
Since then, Cooper has departed for the Arabian Sea to meet with troops stationed aboard the USS Tripoli, while the White House considers its next move.
US President Donald Trump announced on Sunday that he would soon consider a new peace proposal from Iran, although he expressed deep skepticism about its potential success.
In a post on Truth Social, the president stated that he "cannot imagine" that the plan would be acceptable, claiming that Tehran had not yet paid a high enough price for its actions over the past 47 years.
The offer, reportedly delivered by Pakistani intermediaries, follows weeks of intense behind-the-scenes diplomacy aimed at ending Iran's 2026 war.
While specific details remain unconfirmed, sources suggest that the offer may include the reopening of the Strait of Hormuz in exchange for the easing of sanctions and the resumption of nuclear negotiations.
Despite the diplomatic efforts, Trump told reporters that he was still "not satisfied" with Tehran's terms, noting that "they're asking for things that I can't agree to."
Market volatility persists amid the stalled negotiations
Investors are closely monitoring the diplomatic developments, as the uncertain ceasefire remains fragile. Analysts at Investing.com noted that while the prospect of a deal initially sparked a rally in global stock markets, "the closure of the Strait of Hormuz is already priced in."
Market experts warn that "significant downside risks to oil prices" remain if a sustainable de-escalation is not achieved in the near future.
The President recently informed military leaders about the options to "blow up" Iran's infrastructure if negotiations fail.
As the two sides remain far apart on nuclear restrictions and the duration of any moratorium, volatility in the energy and defense sectors is expected to remain high.