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Iran Calls Peace Demands Legitimate After Trump Rejection

Iran has defended its peace proposal as containing entirely legitimate demands after US President Donald Trump publicly dismissed the overture as 'totally unacceptable,' deepening the diplomatic impasse between Washington and Tehran. The rejection marks a significant setback to any near-term diplomatic resolution of tensions that have rattled global markets and unsettled regional stability across the Middle East.

Iranian officials insisted the proposal reflected internationally recognised principles and accused the Trump administration of bad-faith engagement. Tehran's framing of the demands as legitimate is aimed at consolidating support among allied states and positioning the United States as the obstructionist party in any future negotiations.

Trump's characterisation of the proposal as totally unacceptable signals a hardening of the US posture, reinforcing fears of a prolonged standoff or potential escalation. The language used by both sides leaves little room for immediate diplomatic manoeuvre, with no fresh round of talks announced as of Monday afternoon.

The standoff has broader consequences for global energy markets and regional security architecture. Australian equity markets have already registered risk-off sentiment linked partly to the deteriorating US-Iran dynamic, and analysts warn that any further escalation could push oil prices sharply higher and compress diplomatic space further.

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Sources: Dawn
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