US media reports that the US rejected Iran's new proposal and threatened to advance negotiations with bombs; crude oil rises and US stock indices hit new daily lows

According to reports from US media, the Trump administration has rejected Iran's latest peace proposal, with the White House claiming it lacks substantive improvements and that core differences remain unresolved. Trump is expected to summon his national security team on Tuesday to discuss military options. A senior US official warned that if Iran's position does not change, the two sides may continue negotiations "with bombs as a medium." Following the news, international crude oil futures rose, and the three major US stock indices expanded their losses.

According to US media reports on Monday, June 18, Eastern Time, Iran submitted a revised ceasefire proposal to the United States last Sunday night via Pakistani mediation. However, the White House believes this version contains only symbolic modifications compared to the previous draft, which is not enough to promote an agreement. A senior US official stated that although Iran's new proposal includes more language about "not seeking nuclear weapons," it does not make concrete commitments on key issues such as suspending uranium enrichment or handing over existing highly enriched uranium stockpiles.

According to the report, two US officials revealed that President Trump is expected to convene his core national security team in the White House Situation Room on Tuesday to discuss military action options. The senior official warned that if Iran refuses to change its stance, the US will have to "continue these negotiations through bombs." Last Sunday, Trump told the media that "the clock is ticking" and that if Iran does not show flexibility, "they will face even stronger blows."

After the above report came out, US stocks hit new intraday lows in early trading while both US WTI crude and Brent crude saw intraday gains expand to more than 1%. By the end of the US trading session, WTI was back above $107 per barrel and Brent was approaching $111. Among the three major US stock indices, the Dow turned negative, while the S&P 500 and Nasdaq saw deeper losses, hitting new lows at the end of the morning session. The S&P 500 and Nasdaq fell by about 0.5% and 0.9% respectively, and the Dow fell by more than 0.2%. US Treasury yields rose slightly.

According to statements from senior US officials cited by American media on Monday, the US and Iran have not yet begun direct negotiations on substantive issues, and both sides are still in an indirect contact phase, attempting to build consensus on a framework for talks.

The official stated plainly: "We have not actually made much progress. Today the situation is very severe, and the pressure is on whether Iran can give the right response."

The official also noted that the changes in Iran’s new proposal are minimal, which in itself indicates that the Iranian government is concerned about the US taking further military action. He emphasized that without reciprocal actions from Iran, the US will not offer any sanctions relief.

The official refuted reports in Iranian media claiming the US had agreed to partially waive oil sanctions during the negotiations, stating that without reciprocal actions from Iran, the US would never implement any sanctions relief “for free.”

Shortly before the above US media reports, on Monday, Iranian semi-official media quoted a source close to Iran’s negotiating team as saying that although the latest US draft made some modifications, there remain fundamental differences because Washington has put forward "excessive demands and unrealistic positions."

The source stated that Iran’s frozen assets must be returned to the Iranian people in a “clear and guaranteed manner,” and that Iran takes the demand for "compensation for US military actions" “very seriously.” Additionally, while the US has proposed the establishment of a so-called "Development and Reconstruction Fund," there remains a huge gap between the two sides on the fund’s size and related details.

Meanwhile, according to China Central Television News, a senior Iranian source stated that the US has shown some flexibility in allowing Iran to maintain limited peaceful nuclear activities under IAEA supervision; however, on the issue of frozen assets, the US has so far only agreed to unfreeze a quarter of the assets on a phased timeline. Iran hopes the US will reconsider this stance.

The same source also pointed out that Iran has reiterated in its new proposal its demands to end the war, reopen the Strait of Hormuz, and lift maritime sanctions, while core nuclear issues such as uranium enrichment have been postponed to subsequent rounds of negotiations.