Truce Hangs in the Balance as US and Iran Trade Warnings

A month-old ceasefire in Iran looked increasingly fragile Tuesday as Defense Secretary Pete Hegseth said the United States had “a plan to escalate, if necessary,” a day after President Donald Trump dismissed an Iranian proposal to end the war as “garbage.”

Hesgeth, speaking at a congressional hearing on the Pentagon’s budget request, said the U.S. military had several options in the Middle East, including pulling back or shifting assets, but he declined to describe the administration’s next step.

Iran’s state-owned broadcaster reported Monday that Tehran’s demands to end the war and reopen the Strait of Hormuz included U.S. war reparations, recognition of its sovereignty over the strait and an end to American sanctions. Hours later, Trump said in the Oval Office that Tehran was in the grip of “lunatics.”

Trump has said that he wants a swift end to the war and a reopening of the strait, but Iran appears to be testing how far he is willing to go to secure those goals. Its demands suggest it could be betting that the economic pain from soaring energy prices will force him to make concessions.

Iran’s demands for reparations and sovereignty over the strait would almost certainly be nonstarters for the United States. Ending sanctions, meanwhile, would be possible for the Trump administration only if Iran were willing to make major concessions on its nuclear program.

Ebrahim Rezaei, a spokesperson for the national security committee in Iran’s parliament, warned Tuesday that Tehran could consider enriching uranium to 90% purity, a level considered weapons grade, if it was attacked again. It was unclear how seriously Iran was considering such a move, and Rezaei said only that parliament could review the option.

Here’s What Else We’re Covering:

— China summit: Trump was scheduled to depart for Beijing on Tuesday for a summit with China’s leader, Xi Jinping, that could help shape the future of the conflict. Xi is eager to see an end to the fighting with Iran, one of China’s closest Middle East partners.

— U.S. inflation: Consumer prices in the United States rose last month at the fastest rate in three years, the Labor Department reported Tuesday, driven largely by energy costs that have spiked since the war in the Middle East began.

— Gas tax relief: Trump mused Monday about suspending the federal gasoline tax of 18.4 cents per gallon, an action that would require congressional approval.

—

This article originally appeared in The New York Times.

By Euan Ward and Megan Mineiro/Arash Khamooshi
c. 2026 The New York Times Company

The post Truce Hangs in the Balance as US and Iran Trade Warnings appeared first on GV Wire.