WASHINGTON – U.S. President Donald Trump on Tuesday formally rejected Iran’s latest 14-point peace proposal, calling it “totally unacceptable” and a “piece of garbage,” and ordered preparations for an extended naval blockade of the Strait of Hormuz. The decision puts the fragile ceasefire in place since April 8 at risk and has intensified fears of a direct military confrontation. Tehran’s plan, transmitted via Pakistani mediators, demanded the lifting of the existing U.S. naval blockade on Iranian ports and the release of billions of dollars in frozen assets, while refusing U.S. calls to dismantle its nuclear facilities and instead offering to transfer some uranium stocks to a third country for 30 days of talks. In response to the growing tensions, U.S. Ambassador to Israel Mike Huckabee said Israel has deployed Iron Dome anti-missile batteries and personnel to the United Arab Emirates to strengthen regional defenses. NEW YORK – The escalation quickly rippled through global energy and financial markets, driving benchmark U.S. crude up $2.90 to $100.97 a barrel and pushing oil above the $100-per-barrel threshold. The price surge coincided with a “hot” April Consumer Price Index report from the Bureau of Labor Statistics, which showed U.S. inflation at 0.6% month-on-month and 3.8% year-on-year, the highest annual reading since May 2023 and above economists’ expectations. Citing rising energy costs and the 10-week Middle East conflict as key drivers, the data sent Wall Street lower: the Dow Jones Industrial Average fell 156 points, while the S&P 500 and Nasdaq Composite also declined. Analysts at major banks, including Goldman Sachs, scaled back expectations for Federal Reserve interest rate cuts, with markets now pricing in rates in the 3.50% to 3.75% range through the end of 2026, adding to concerns over a prolonged cost-of-living squeeze for U.S. households as gasoline and transportation costs rise.

Prepared by Christopher Adams and reviewed by editorial team.