US President Donald Trump has raised concerns of resuming hostilities with Iran after rejecting a fresh proposal to end the war. Trump called the offer 'a piece of garbage' and said the ceasefire is 'on life support'. The conflict has killed thousands and halted vital energy flows through the Strait of Hormuz, a key energy passage.
Iran demanded compensation for war damage, sovereignty over the Strait of Hormuz, and an end to the US naval blockade. The US had proposed an end to fighting before starting talks on more contentious issues, including Iran's nuclear programme.
Brent crude oil futures traded 2.7% higher at around $104 a barrel as the deadlock left the Strait of Hormuz largely closed. Oil producers have cut exports, and OPEC oil output dropped further in April to the lowest in more than two decades.
