No end to war in sight as Iran, US reject talks terms

Iran said on Monday it had demanded the release of its frozen assets and the end of a US blockade of its ports, after President Donald Trump angrily rejected Tehran's terms for starting negotiations to halt the Middle East war.

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The sharp exchange of messages raised the spectre of a return to open conflict in the Gulf, sent oil prices soaring and dashed hopes that a deal could be quickly negotiated to reopen the Strait of Hormuz to commercial shipping.

Trump reacted with fury after Iran responded to the latest US proposal for peace talks with a counteroffer he deemed, in a brief social media post, "TOTALLY UNACCEPTABLE."

Trump said on Monday that a

Asked where the ceasefire stands, Trump told reporters on Monday that the ceasefire with Iran was "on life support."

"I would call it the weakest right now, after reading that piece of garbage they sent us. I didn't even finish reading it," he said.

In its response, Tehran also demanded compensation for war damage, emphasised its sovereignty over the Strait of Hormuz, and called on the US to end its naval blockade, guarantee no further attacks, lift sanctions and remove a ban on Iranian oil sales.

The US had proposed an end to fighting before starting talks on more contentious issues, including Iran's nuclear programme. Tehran defended its stance on Monday.