Nations Brace for Long-Term Economic Woes as Trump Calls Iran Truce Plan ‘Garbage’

Countries were bracing on Monday for prolonged economic woes stemming from high energy prices after President Trump called the latest Iranian offer to end the war and reopen the Strait of Hormuz “garbage” and declared that the cease-fire was “on massive life support.”

Mr. Trump, speaking to reporters in the Oval Office, reiterated that Iran could not be allowed to develop a nuclear weapon and likened the truce announced last month to a patient with a “1 percent chance” of survival.

Iran’s state-owned broadcaster reported on Monday that in its latest counterproposal delivered via Pakistani mediators, Iran had demanded that the United States pay war reparations, recognize Iranian sovereignty over the Strait of Hormuz and end the sanctions placed on the government in Tehran.

A spokesman for Iran’s foreign ministry, Esmail Baghaei, told reporters that Iran had not demanded any “concessions” and had instead asserted the country’s “legitimate rights.”

Article source: https://www.nytimes.com/2026/05/11/world/middleeast/economic-woes-trump-iran-truce.html