Trump says peace proposal response ‘unacceptable,’ raising fears Hormuz will stay closed

The month-long U.S.-Iran ceasefire was close to unraveling after President Trump called Tehran’s response to the peace proposal "totally unacceptable," while Prime Minister Netanyahu said the war was not over. The escalation raises the risk of renewed conflict in the region and could trigger broad risk-off moves across equities, oil, and defense-related assets. Market impact is high because the headline points to a potential breakdown in a fragile geopolitical truce.

Analysis

The month-long U.S.-Iran ceasefire was close to unraveling after President Trump called Tehran’s response to the peace proposal "totally unacceptable," while Prime Minister Netanyahu said the war was not over. The escalation raises the risk of renewed conflict in the region and could trigger broad risk-off moves across equities, oil, and defense-related assets. Market impact is high because the headline points to a potential breakdown in a fragile geopolitical truce.