The efforts to end the Iran conflict came to a standstill on Tuesday, with U.S. president Donald?Trump unsatisfied with the latest offer from Tehran. He said that Tehran had told the U.S. they were in a state of collapse and trying figure out their leadership situation. Iran's?most recent offer to end the two-month conflict would put aside discussions?of its?nuclear programme until the war was over and shipping disputes were resolved.

A U.S. official who was briefed about Trump's meeting with his advisors on Monday said that Trump wants to deal with nuclear issues from the start. Trump wrote in a Truth Social posting on Tuesday: "Iran just told us that they're in a state of collapse." They want to "Open the Hormuz Strait" as soon as we can, while they figure out their leadership (which I believe they'll be able do !)."

There was no immediate reaction from Tehran in response to Trump's comments.

A spokesperson for the Iranian army told the state-run media earlier that the Islamic Republic didn't consider the war to be over.

Since the start of the war on 28 February, Iran has blocked most shipping except its own, through the Strait of Hormuz. This is a major chokepoint in global energy supply. The U.S. started blocking Iranian ships this month.

IRAN'S GUARDS PLAY A LARGER ROLE The hope of reviving the peace effort in a conflict which has killed thousands and thrown energy markets and global trade routes into chaos have diminished since Trump cancelled last weekend a trip by his special envoy Steve Witkoff, and his son-in law Jared Kushner, to Pakistan as a mediator. Abbas Araqchi, the Iranian Foreign Minister, shuttled back and forth between Islamabad on two separate occasions during the weekend. Iran has no longer a single undisputed clerical authority at the top of its power structure since several senior Iranian military and political figures were killed by U.S./Israeli airstrikes. This may have influenced Tehran's negotiating stance. Iranian officials and analysts claim that the death of Ayatollah Ali Khamenei, on the first day, and his son Mojtaba's elevation to the position of supreme leader has given more power to the hardline commanders in the Islamic Revolutionary Guard Corps.

Senior Iranian officials speaking under condition of anonymity said that the proposal brought by Araqchi over the weekend to Islamabad envisaged talks in stages.

The first step is to end the war, and provide guarantees that the U.S. will not restart it. Negotiators will then resolve the U.S. Navy blockade of Iran’s trade via sea, and the fate of Strait of Hormuz which Iran wants to reopen.

Then, and only then, would the talks turn to other issues. Iran wants U.S. recognition of its right enrich uranium.

This would be reminiscent of the 2015 Iran nuclear deal, in which the United States and others cut back Tehran's nuclear program.

Trump unilaterally rescinded that agreement in his first term. He is now under domestic pressure to stop a war he has been justifying in a way that the American public does not understand. According to an Ipsos survey, Trump's approval rating has fallen to its lowest level of his current term as Americans have become increasingly dissatisfied with his handling of cost of living issues and unpopular wars. The survey showed that 34% of Americans approved of Trump's performance. This is down from 36% of Americans in the previous survey.

In the latest sign that tensions are growing between Trump and his European allies, Trump said on social media that German Chancellor Friedrich Merz does not "know what he is talking about" in regards to Iran. Merz claimed on Monday that Iran’s leadership humiliated the U.S., and he didn't see the exit strategy that the?Trump Administration was pursuing.

OIL PRICES ARE ON THE RISE AGAIN With the 'warring sides' still far apart, oil price rose again, Brent crude up 2.8% at around $111.26 per barrel. If the Iran War ends in May, the World Bank predicts that energy prices will rise by 24 percent in 2026. This would be their highest level since Russia invaded Ukraine in full four years earlier. United Arab Emirates announced it would leave OPEC+ and OPEC, exposing the discord between Gulf nations regarding Iran. Ship-tracking data shows that the U.S. ban on Iranian oil has forced at least six tankers to return to Iran in the last few days. This highlights the impact of the war on the traffic.

Fatemeh Mohajerani, a spokesperson for the Iranian government, told state media that Tehran used northern and eastern trade corridors to neutralize the effects of the blockade.

According to SynMax's satellite analysis and Kpler ship tracking data, only seven ships have crossed the Strait of Hormuz in the last day. None of them carried oil bound for global markets.

The U.S. announced on Tuesday that it would impose sanctions on 35 entities, including individuals, for their involvement in Iran's "shadow banking system". They were accused of facilitating tens billions of dollars linked to sanctions evasion, and what they said was Iran’s sponsorship of terrorists. (Reporting and writing by Bureaus; Alex Richardson, Matt Spetalnick, Jonathan Allen; Editing, Jon Boyle; Rod Nickel)

(source: Reuters)