DUBAI, United Arab Emirates (AP) — President Donald Trump on Monday said the Iran ceasefire is on "life support" after rejecting Tehran's latest proposal, which officials said included some nuclear concessions. Trump also proposed suspending the federal gas tax to help with higher fuel prices caused by the war.
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The stalled diplomacy and recent exchanges of fire could tip the Middle East back into open warfare and prolong the worldwide energy crisis sparked by the conflict. Iran still has a chokehold on the Strait of Hormuz, a vital waterway for global oil and gas shipments, and America is blockading Iranian ports.
Asked at the White House if the ceasefire was still in effect, Trump said it's on "life support."
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"I would call it the weakest right now after reading that piece of garbage they sent us," Trump added. "I didn't even finish reading it."
Trump also said he supported a suspension of the federal tax on gasoline — just over 18 cents per gallon and 24 cents for diesel. Congress, which is controlled by Republicans, would have to approve. The tax brings in more than $23 billion each year.
His pledge came after fuel prices surged past $4.50 a gallon last week. Trump predicted that the price of oil and gas would drop "like a rock" as soon as hostilities are over.
The two sides remain far apart
Trump has demanded a major rollback of Iran's nuclear activities, while Iran is pushing for a more limited agreement that would reopen the strait and lift the blockade ahead of further negotiations.
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On Monday, Trump claimed that Iran had said it would allow the U.S. to come in and help extract its highly enriched uranium but went back on that in its latest ceasefire proposal. "They changed their mind because they didn't put it in the paper," he said.
Iran has not publicly agreed to give up its uranium, saying it has a right to enrich and that its nuclear program is entirely peaceful.
Two regional officials told The Associated Press that Iran has offered to dilute part of its highly enriched uranium and transport the rest to a third country. Russia has previously offered to take it. The officials spoke on condition of anonymity to discuss the sensitive diplomacy.
Trump is expected to use a trip this week to China to urge President Xi Jinping to pressure Iran. Beijing is the biggest buyer of Iran's sanctioned crude oil, giving it leverage.
Israeli Prime Minister Benjamin Netanyahu, who launched the war with Trump on Feb. 28, has also demanded that all of Iran's highly enriched uranium be removed from the country.
He told CBS' "60 Minutes" in an interview that aired Sunday that if that can't be accomplished with negotiations, Israel and the U.S. agree "we can reengage them militarily."
Iran's proposal included far-reaching demands
Iran's proposal asked that the U.S. recognize its sovereignty over the Strait of Hormuz, formalizing its control over the international waterway. Iran has effectively closed the strait since the start of the war, allowing only a small number of ships to pass and charging tolls.
But experts say such an arrangement would likely violate international law that provides for freedom of navigation. That proposal is also likely to be widely rejected by the international community. The strait was open to international traffic before the war.
Iran is also demanding war reparations from the U.S., the lifting of international sanctions, the unfreezing of Iranian assets held abroad and an end to the war between Israel and Lebanon's Iran-backed Hezbollah, according to Iranian state TV.
Israel and Hezbollah have continued to exchange blows, mainly in southern Lebanon, since a nominal ceasefire took hold last month.
"We did not demand any concessions — the only thing we demanded was Iran's legitimate rights," Iranian Foreign Ministry spokesman Esmail Baghaei said Monday. "The American side still insists on its one-sided views and unreasonable demands."
Pakistan still trying to negotiate a deal
Two regional diplomats familiar with the ongoing talks said that Pakistan was continuing its efforts to broker a compromise.
One of the diplomats said Pakistan was trying to arrange a memorandum of understanding aimed at ending the war and paving the way for a broader dialogue on issues where the two sides remain divided.
Pakistan had hoped to help finalize the memorandum last week, but the effort did not materialize, and mediators are still working on various proposals, the diplomat said.
The diplomat, speaking on condition of anonymity to discuss the behind-the-scenes diplomacy, added that Islamabad is receiving support from other regional countries in its peace efforts.
Iran keeps up its executions
Meanwhile, Iran executed another man it accused of spying for both the CIA and Israel's Mossad intelligence service. Iran's state-run IRNA news agency said Erfan Shakourzadeh had worked on satellite communications and relayed classified information to those intelligence services.
Iran has carried out a string of executions since nationwide protests swept the country in January. Activist groups have long accused Iran of carrying out closed-door trials during which defendants are unable to fully defend themselves. Iran's judiciary chief has repeatedly said that Tehran would increase the speed with which it carried out hangings to fight back against its enemies at home and abroad.
Magdy reported from Cairo and Kim from Washington. Associated Press reporter Munir Ahmed in Islamabad contributed.
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Jon Gambrell, Associated Press Jon Gambrell, Associated Press
Jon Gambrell, the news director for the Gulf and Iran for The Associated Press, has reported from each of the Gulf Cooperation Council countries, Iran and other locations across the world since joining the AP in 2006.