Efforts to resolve the ongoing conflict between the United States and Iran remain stalled as President Donald Trump expressed dissatisfaction with Tehran's latest peace proposal. On Tuesday, Trump stated that Iran had informed him it was in a "state of collapse" and was working to stabilize its leadership amid the two-month war, which has severely impacted global trade and energy markets.

Iran’s current offer, conveyed through Iranian Foreign Minister Abbas Araghchi during recent meetings in Islamabad, Oman, and Russia, proposes postponing discussions on its nuclear program until after the cessation of hostilities and the resolution of maritime shipping disputes in the Gulf. The proposal includes lifting the U.S. blockade and ending the conflict before addressing the nuclear issue. However, U.S. officials have made clear that negotiations must address Iran’s nuclear ambitions from the outset, a position reinforced by Trump and members of his national security team.

Trump amplified these developments in a post on his social media platform, Truth Social, where he wrote, “Iran has just informed us that they are in a ‘State of Collapse.’ They want us to ‘Open the Hormuz Strait,’ as soon as possible, as they try to figure out their leadership situation (Which I believe they will be able to do!).” The White House did not specify how this message was delivered or whether it was communicated directly or via intermediaries.

The conflict has severely disrupted navigation through the Strait of Hormuz, a vital chokepoint for global energy supplies. Iran has largely blocked shipping from the Gulf since the war began on February 28, prompting the U.S. to impose a counter-blockade on Iranian vessels. In recent days, at least six oil tankers bound for international markets were turned back toward Iran, according to commercial ship-tracking data. Iranian officials, however, maintain that they have implemented alternative trade routes through northern, eastern, and western corridors, avoiding Gulf ports to mitigate the blockade's effects.

Regionally, Gulf Cooperation Council leaders convened in Saudi Arabia for their first in-person meeting since the conflict escalated. Bahraini Foreign Minister Abdullatif bin Rashid al-Zayani, representing a coalition of about 80 nations, called for the urgent reopening of the Strait of Hormuz, emphasizing the risks to global trade and security. The meeting follows thousands of missile and drone attacks on Gulf states since the war commenced, though a ceasefire agreed on April 8 has led to a reduction in hostilities.

The conflict’s persistence has contributed to volatile energy markets, with Brent crude oil prices rising nearly 3 percent to over $111 per barrel on Tuesday. The World Bank projects a 24 percent increase in energy prices for 2026, reaching levels not seen since the onset of the Ukraine crisis in 2022 if the disruptions from the Iran war continue until May.

Domestically, President Trump faces mounting criticism for his handling of the war, reflected in declining approval ratings. The administration has also experienced tensions with European allies; Trump publicly rebuked German Chancellor Friedrich Merz for his comments on the U.S. stance toward Iran, while King Charles III reaffirmed the enduring alliance between the United Kingdom and the United States despite current disagreements.

Meanwhile, Iranian officials report internal shifts in leadership following the killing of Ayatollah Ali Khamenei at the war’s outset and the elevation of his son, Mojtaba, as the new Supreme Leader. This transition is seen as empowering hardline military commanders and potentially influencing Iran’s negotiating position.

As peace efforts remain stalled, the risk of renewed conflict continues to loom over the Gulf region, pressing all parties to find a pathway toward a comprehensive resolution that addresses both nuclear concerns and regional security.