US President Donald Trump on Monday flatly rejected Iran's latest response to a U.S. peace proposal aimed at ending a months-long war, signaling that a diplomatic breakthrough remains elusive as clashes in the Persian Gulf intensify."I have just read the response from Iran's so-called 'Representatives," Trump wrote on Truth Social. "I don't like it — TOTALLY UNACCEPTABLE! Thank you for your attention to this matter."Iran sent its response through Pakistani mediators, hours before Trump's public rebuke. Talks between Tehran and Washington had already stalled in recent weeks, with the two sides continuing to trade fire in the Persian Gulf more than a month after a temporary ceasefire deal initially intended to reopen the Strait of Hormuz was announced.Washington had sent Tehran a 14-point proposal earlier this week. Under its conditions, Iran would be required to agree not to develop a nuclear weapon, halt all uranium enrichment for at least 12 years, and hand over its estimated 440 kilograms of uranium enriched to 60 percent.ALSO READ: Oil Rally Resumes With Brent Crude Near $105 After Trump Calls Iran Response 'Unacceptable'Iran's counteroffer fell short of those demands. According to reports, Tehran's multi-page response agreed to export some of its highly enriched uranium to a third country and dilute the rest, and accepted an enrichment pause — but not one lasting 20 years, and it did not agree to "dismantle" its existing nuclear infrastructure. Iran also, reportedly, conditioned reopening the strait on the U.S. ending its naval blockade first.The standoff has strained the possibility of reopening the Strait of Hormuz, a critical waterway for roughly one-fifth of the world's oil supply. Brent crude rose as much as 3.5% to $104.80 a barrel, while West Texas Intermediate climbed toward $99 on Monday. On Sunday, the UAE said it intercepted two drones coming from Iran, while Qatar condemned a drone strike that struck a cargo ship in its waters, and Kuwait reported its air defenses had dealt with hostile drones that entered its airspace — underscoring how far the conflict still is from resolution.ALSO READ: Iran Reviews US War-Ending Proposal, Sends Formal Response Via Islamabad