WASHINGTON: Efforts to end the Iran war suffered a setback after Iran sent its response to the latest U.S. peace proposal via Pakistani mediators, which U.S. President Donald Trump immediately dismissed as “TOTALLY UNACCEPTABLE!”

Iranian state television said Tehran rejected the U.S. plan as a demand for surrender. It instead called for war reparations from the U.S., full Iranian control over the Strait of Hormuz, lifting of sanctions, and release of seized Iranian assets.

The U.S. proposal reportedly included ending the war, reopening the Strait of Hormuz, and rolling back Iran’s nuclear program.

Trump provided no details in his rejection but earlier accused Iran of “playing games” with the U.S. for nearly 50 years, adding: “They will be laughing no longer!”

U.S. Ambassador to the United Nations Mike Waltz told reporters that Washington is giving diplomacy “every chance we possibly can before going back to hostilities.”

Iranian state media also reported that Supreme Leader Mojtaba Khamenei, who has not appeared publicly since the war began, has issued “new and decisive directives” for continued military operations during a meeting with senior commanders.

The conflict has already disrupted shipping in the Persian Gulf and pushed global energy prices higher.