United States President Donald Trump on Sunday rejected Iran's latest proposal to end the West Asia conflict, declaring it entirely unacceptable, even as oil prices surged nearly three per cent on Monday amid fears that the diplomatic impasse could escalate into open confrontation.

Without elaborating on the specifics of Tehran's offer, Trump posted on his Truth Social platform: "I just read the response from those who purport to represent Iran. I don't like it — it is not acceptable in any way." The blunt dismissal came shortly after Iranian state media outlined the broad contours of what Tehran had proposed.

What Iran Sought

According to Iran's state-run news agency Tasnim, Tehran's proposals included compensation for damages suffered during the conflict, a lifting of the naval blockade on its ports, a binding American assurance against further strikes, removal of sanctions, and an end to the embargo on Iranian oil sales. Iran also demanded the release of Iranian assets frozen in international banks under American pressure, and sought guarantees for safe navigation through the Strait of Hormuz, as well as security arrangements in Lebanon.

Iranian Foreign Ministry spokesperson Ismail Baghaei defended the proposals as reasonable and responsible. "Our demands are legitimate. We called for an end to the war, the lifting of the blockade, a halt to maritime piracy, and the release of frozen Iranian assets," he said, adding that safe passage through the Strait of Hormuz and broader regional security arrangements were also among Tehran's conditions.

Hormuz Tensions and Oil Markets

With negotiations deadlocked following Trump's rejection, the Strait of Hormuz — a critical chokepoint through which a significant share of global oil supplies passes — came under renewed strain. Iran has warned that it would retaliate if the United States launches strikes, and has signalled that foreign warships may no longer be permitted to enter the strait. The resulting uncertainty sent crude oil prices sharply higher on Monday, with markets registering a rise of approximately three per cent.

Trump's China Visit from Wednesday

Against this backdrop of West Asian tensions, Trump is scheduled to travel to China on Wednesday for a three-day visit — his first trip to the country since 2017. He is expected to hold meetings with Chinese President Xi Jinping on Thursday and Friday, with the agenda likely to include discussions on Iran, Taiwan, artificial intelligence, and nuclear weapons.

American officials indicated that the two leaders may also take up the extension of an existing critical minerals agreement between the two countries. The visit marks the first face-to-face talks between the leaders of the world's two largest economies in six months, and comes at a time when both nations are seeking to recalibrate trade ties strained by tariff disputes.

Americans Billed for Unbuilt Power Projects

In a separate development, millions of American consumers are being charged for electricity grid upgrades that have not yet been completed — and whose benefits remain years away. As ageing grid infrastructure prompts policymakers to accelerate modernisation, utilities across the United States are being permitted to bill customers in advance of the construction of new power plants and transmission lines, according to a Reuters report.

The move is being justified on the grounds that upfront financing will yield long-term savings, but households and businesses already grappling with elevated energy costs are set to see their bills rise further. Demand for grid upgrades has intensified amid the rapid expansion of data centres driven by artificial intelligence, adding urgency to the overhaul. Critics, however, argue that utilities should recover construction costs only after projects are completed, rather than passing financial risk on to consumers during the building phase. Individual household bills could rise by several dollars per month as a result of the pre-construction charges.