President Donald Trump has met with his national security team to discuss Iran's peace proposal to end the three-month-old Middle East conflict. The war has not only claimed thousands of lives but has also crippled global energy flows through the Strait of Hormuz.
Iran has offered a temporary deal to reopen the Strait of Hormuz on condition that Washington lifts its blockade of its ports. However, Iran wants to retain control of shipping in the strategic route, which is seen as a key sticking point for the US.
Market data showed the impact of the conflict was clear, with Brent crude oil prices jumping 3% to above $111 a barrel. The White House has remained adamant that any deal must include strict limits on Iran's nuclear activities, in line with Trump's "red lines".
The diplomatic standoff has drawn international criticism, including from German Chancellor Friedrich Merz, who said the US was being humiliated by Tehran. The uncertainty has raised concerns about fuel rationing in Asia and Africa and the risk of a broader global economic slowdown.
The situation is further complicated by the involvement of other major powers such as Russia, which is strengthening its ties with Tehran. In addition, the fragile ceasefire between Israel and Hezbollah in Lebanon continues to be threatened by ongoing attacks, adding to the instability in the region.
