Negotiations between Washington and Tehran hit a wall Sunday after President Trump rejected Iran’s latest response to a U.S. peace proposal, calling it “totally unacceptable” on Truth Social.

The two sides continued exchanging fire in the Persian Gulf more than a month after a temporary ceasefire was supposed to reopen the Strait of Hormuz, through which roughly 20% of the world’s oil once flowed. Iran has kept the strait closed, disrupting global energy markets, though oil prices dropped last week on hopes a deal was near.

Energy Secretary Chris Wright said the U.S. wants “free flow of traffic” through the strait and an end to Iran’s nuclear program. UN Ambassador Mike Waltz acknowledged talks had gone “longer and slower than anyone would like.” Trump’s naval escort initiative, “Project Freedom,” was paused last week. A U.S. intelligence assessment concluded Iran can withstand the American port blockade for several more months.

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