Iran War Ceasefire Fragile as US Rejects Tehran’s Latest Offer

By Kate Sullivan and Salma El Wardany

May 12, 2026 (Bloomberg) –Shipping traffic in the Strait of Hormuz remained at a standstill on Tuesday, with oil rising after US President Donald Trump rejected Iran’s latest offer and suggested the ceasefire may not hold.

Speaking to reporters in the Oval Office, Trump called Iran’s response to his proposal a “piece of garbage” and said the ceasefire was on “life support.” The comments came as Trump prepares to meet Chinese President Xi Jinping in Beijing on Thursday — a high-stakes meeting that he will enter under economic and political strain back home.

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