US Threatens Escalation After Iran Rejects Trump Peace Proposal, Global Markets React

Kuala Lumpur– Tensions in the Middle East have escalated after Iran rejected a 15‑point peace proposal put forward by the United States, raising concerns over a potential intensification of military action. The proposal, aimed at ending the ongoing conflict, included terms for a ceasefire and the resolution of key disputes in the region.

Following Tehran’s rejection, the White House signaled that it may escalate military operations if Iran refuses to comply or acknowledge defeat. Officials warned that further strikes could target Iranian infrastructure, heightening the risk of a wider regional conflict.

The announcement immediately impacted global markets. Brent crude oil surged past $105 per barrel, while major stock indexes, including the FTSE 100, fell as investors reacted to the heightened geopolitical risk. Analysts warn that prolonged hostilities could disrupt international trade and energy supply chains, particularly through the Strait of Hormuz, a critical chokepoint for global oil shipments.

This development comes amid ongoing drone and missile attacks across the Gulf region, targeting strategic facilities, airports, and ports. Recent incidents include drone strikes on Kuwait International Airport, which caused fires at fuel storage facilities, highlighting the vulnerability of regional infrastructure.

Experts stress that diplomatic efforts are still essential to prevent further escalation. However, with both sides maintaining firm positions, the situation remains tense.

The US administration has vowed to continue pursuing pressure on Iran, while the Iranian government maintains its demands, including recognition of territorial and navigational rights in the Strait of Hormuz and reparations for damages incurred.

As the crisis unfolds, global markets, aviation hubs, and regional security remain under close watch, with international observers calling for urgent dialogue to avoid a wider conflict.