Iran rejects US peace terms, intensifies attacks on Israel as regional conflict spreads and global oil prices surge sharply
Iran has dismissed United States proposals to end the ongoing Middle East conflict, describing them as “unrealistic, illogical and excessive,” while intensifying military actions against Israel as the war enters its second month.
The rejection came as Iran launched fresh missile strikes on Israel on Monday, further escalating a conflict that has spread across multiple fronts in the region. Oil prices also climbed sharply following the entry of Yemen’s Houthi group into the war.
Israel’s military confirmed that two drones launched from Yemen were intercepted on Monday. The development follows recent missile attacks by the Iran-aligned Houthis, marking their first direct involvement since the conflict between the US and Iran began.
In a widening theatre of hostilities, Lebanon’s Hezbollah also fired rockets into Israel, prompting retaliatory strikes. The Israeli military said it targeted what it described as military infrastructure in Tehran and Hezbollah-linked facilities in Beirut, with black smoke seen rising over the Lebanese capital.
US President Donald Trump issued a fresh warning to Iran, demanding the reopening of the Strait of Hormuz, a critical global energy route or face potential US attacks on its energy infrastructure.
In a social media post, Trump wrote: “Great progress has been made but, if for any reason a deal is not shortly reached, which it probably will be, and if the Hormuz Strait is not immediately ‘Open for Business,’ we will conclude our lovely ‘stay’ in Iran by blowing up and completely obliterating all of their Electric Generating Plants, Oil Wells and Kharg Island.”
Iran, however, remains defiant. Foreign Ministry spokesperson Esmaeil Baghaei confirmed Tehran had received indirect messages from Washington indicating a willingness to negotiate, but firmly rejected the terms presented.
“Our position is clear. We are under military aggression. Therefore, all our efforts and strength are focused on defending ourselves,” Baghaei said at a press conference.
He also revealed that Iran’s parliament is reviewing a potential withdrawal from the Nuclear Non-Proliferation Treaty, raising further concerns about the future of nuclear oversight in the region.
Diplomatic efforts continue, with Pakistan, Egypt, Saudi Arabia and Turkey engaging in mediation discussions. However, a Pakistani security official said direct US-Iran talks appear unlikely in the immediate term, adding: “We are trying our best to make it happen as early as possible.”
Despite ongoing diplomatic signals, military escalation continues. The US has deployed additional troops to the Middle East, while Iran maintains its blockade of the Strait of Hormuz.
The conflict has significantly disrupted global energy markets. Brent crude rose by $2.42, reaching nearly $115 per barrel, on course for a record monthly increase. Analysts warn the market is bracing for further escalation, with the Houthis’ involvement raising fears of potential disruption to the Bab el-Mandeb Strait, another critical shipping route.
The war has also triggered heavy casualties across the region. Thousands have been killed, including civilians and military personnel in Iran, Lebanon, Iraq and among US forces.
Iran confirmed the death of senior Revolutionary Guards Navy Commander Alireza Tangsiri, one of several high-profile figures lost during the conflict. Despite sustained bombardment by US and Israeli forces, Iran continues to launch missile and drone attacks.
In Israel, debris from intercepted missiles struck a fuel storage facility near a naval base in Haifa, while Hezbollah claimed responsibility for targeting the same installation.
The intensifying conflict has also reignited tensions in southern Lebanon, where Israel has indicated plans to establish a “buffer zone,” raising fears of prolonged military occupation and further displacement.
With no immediate resolution in sight, global markets and diplomatic channels remain on edge as the war deepens and spreads across the region.
