Iran peace talks stall as ceasefire 'on life support'

Hopes for a peace deal on Iran faded on May 12 after U.S. President Donald Trump said a fragile ceasefire was "on life support" following Tehran's rejection of Washington's proposal and its insistence on a set of demands the American leader described as "garbage." Iran's response called for an end to the war on all fronts, including Lebanon, demanded recognition of its sovereignty over the Strait of Hormuz, requested compensation for war damage, and called for an end to the U.S. naval blockade. The ceasefire, which began on April 7, is now under severe strain as peace talks remain deadlocked after the latest round of negotiations failed to produce a breakthrough. The breakdown in negotiations sent oil prices climbing above $104.50 a barrel in early Asian trading on May 12, as the near-closure of the Strait of Hormuz continued to disrupt global supply chains. Before the war began on February 28, the narrow waterway carried one-fifth of the world's oil and liquefied natural gas shipments, and OPEC output dropped further in April to the lowest in more than two decades. Shipping data showed only three tankers laden with crude exited the strait last week, with trackers switched off to avoid Iranian attacks. The United States also imposed fresh sanctions on individuals and companies allegedly helping Iran ship oil to China, aiming to cut off funding for Tehran's military and nuclear programs. Iran's chief negotiator Mohammad Bagher Ghalibaf warned the United States to accept Tehran's 14-point peace proposal or face failure, stating there was "no alternative but to accept the rights of the Iranian people." An Iranian parliamentary official further raised the stakes by suggesting lawmakers could consider enriching uranium to weapons-grade levels of 90 percent if conflict resumed, as Iran currently holds a stockpile enriched to 60 percent purity. Trump, who is scheduled to arrive in Beijing on May 13 for talks with Chinese President Xi Jinping where Iran is expected to be discussed, has repeatedly threatened to end the ceasefire while domestic polls show two out of three Americans believe he has not clearly explained why the country went to war, with fuel costs rising less than six months before crucial congressional elections.