Iran Pushes Back Hard Against U.S. Pressure as the Hormuz Crisis Shows No Signs of Easing

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Summary:

Iran rejects the U.S. proposal; a U.S. commercial vessel was attacked by Iranian drones...

Top Headlines

1. Trump administration considers suspending fuel taxes

2. Iran says any further enemy attack will trigger a new battlefield

3. Republican senator urges Trump to resume the “Freedom Mission” escort operation

4. More than 40 countries to hold talks Monday on post-ceasefire escort operations in the Strait of Hormuz

5. Iran rejects the U.S. proposal

6. A U.S. commercial vessel attacked by Iranian drones

7. U.S. nonfarm payrolls rose by 115,000 in April, far exceeding expectations

8. U.S. consumer sentiment falls to a record low as concerns over oil prices and inflation intensify

9. Goolsbee: All interest rate options remain on the table

Detailed Headlines

Trump Administration Considers Suspending Fuel Taxes

U.S. Energy Secretary Chris Wright said the Trump administration supports all measures that could help lower oil prices when asked whether he backed suspending the federal fuel tax. In an interview with NBC, he said the administration is continuously exploring various options. Asked whether President Trump would consider suspending the federal fuel tax, Wright responded that “all options are on the table.”

Iran Says Any Further Enemy Attack Will Trigger a New Battlefield

On May 10, Iranian Army spokesperson Mohammad Akraminia stated that if the enemy once again miscalculates and launches aggression against Iran, it will face other unexpected options. These include more advanced weaponry, entirely new methods of warfare, and most importantly, new battlefields. He said the conflict would expand into areas the enemy neither anticipated nor included in its plans, and Iran has the capability to catch its adversaries off guard in those domains.

Republican Senator Urges Trump to Resume the “Freedom Mission” Escort Operation

U.S. Republican Senator Roger Wicker publicly urged President Trump to restart the “Freedom Mission” operation aimed at escorting stranded vessels through the Strait of Hormuz. Trump suspended the plan last week to leave room for diplomatic negotiations. Wicker called for a swift resumption of the escort mission to ease pressure on global energy supplies caused by the blockade of the strait. Although the U.S. and Iran are still negotiating an end to the conflict, shipping traffic through the Strait of Hormuz remains largely stalled. Wicker’s remarks reflect growing strategic anxiety among some Republican lawmakers over reopening the waterway.

More Than 40 Countries to Hold Talks Monday on Post-Ceasefire Escort Operations in the Strait of Hormuz

More than 40 countries will meet on Monday to discuss a British- and French-led escort mission aimed at stabilizing maritime traffic through the Strait of Hormuz after a ceasefire. Participating nations are expected to contribute minesweeping, escort, and aerial patrol capabilities. British Defense Secretary Healey said the goal is to turn diplomatic agreements into practical military plans to restore confidence in shipping through the strait. He will co-chair Monday’s meeting with French Defense Minister Vautrin. The UK will deploy the destroyer HMS Dragon for the mission. Trump previously criticized Britain and other NATO allies for being unwilling to commit naval forces to reopening the strait, mocking their aircraft carriers as “toys” and accusing Britain of offering air support far later than the U.S. actually needed.

Iran Rejects the U.S. Proposal

According to Iran’s state media outlet Press TV on Sunday, Tehran has rejected the U.S. peace proposal, arguing that Washington’s offer effectively demands Iran surrender to President Trump’s excessive demands.

Earlier, Trump posted on social media expressing dissatisfaction with Iran’s response to the peace proposal, calling it “totally unacceptable.” Iranian media previously reported that Tehran had formally submitted its response to the latest U.S. proposal, via Pakistani mediators, focusing on ending the war and ensuring maritime security in the Persian Gulf and the Strait of Hormuz.

Iran’s proposal emphasized that the United States must pay compensation for war-related damages, reaffirmed Iran’s sovereignty over the Strait of Hormuz, and demanded that the U.S. Treasury’s Office of Foreign Assets Control lift sanctions related to Iranian oil sales within 30 days.

U.S. Commercial Vessel Attacked by Iranian Drones

According to Fox News, a U.S. commercial vessel in the Persian Gulf was attacked Sunday by two Iranian drones. One of the drones struck the vessel. There were 23 crew members on board, and no injuries have been reported.

The New York Post recently cited sources saying nationalist sentiment in Iran is rising and that the influence of the Revolutionary Guard has increased domestically. Factions supporting war and those favoring diplomatic mediation are reportedly deeply divided, leading to internal fractures within Iran. Although President Pezeshkian and Foreign Minister Araghchi are finalizing the core terms of a peace agreement, the final decision ultimately rests with the military leadership.

U.S. Nonfarm Payrolls Rose by 115,000 in April, Far Exceeding Expectations

Data released Friday by the U.S. Bureau of Labor Statistics showed that nonfarm payrolls increased by 115,000 in April, marking the first consecutive monthly increase in nearly a year and the strongest two-month gain since 2024. The figure far exceeded market expectations of 62,000. March payrolls were also revised upward to 185,000.

The U.S. unemployment rate for April stood at 4.3%, in line with market expectations. Private-sector employment rose by 123,000, compared with expectations of 75,000. Manufacturing employment fell by 2,000, versus expectations for a gain of 5,000, while government employment declined by 8,000. Average hourly earnings increased by 0.2% month-on-month, below the expected 0.3%, while the average workweek rose to 34.3 hours from the expected 34.2 hours. In addition, combined payroll gains for February and March were revised down by 16,000.

The data indicate continued resilience in the labor market and further reinforce expectations that the Federal Reserve will keep interest rates unchanged for an extended period. Nick Timiraos, often referred to as the “Fed whisperer,” said the U.S. labor market has stabilized, while inflation—affected by tariffs and the Iran conflict—is shifting from moderation back toward acceleration. Market attention may now turn increasingly toward inflation data.

U.S. Consumer Sentiment Falls to a Record Low as Oil Price and Inflation Concerns Intensify

U.S. consumer sentiment has fallen to a new record low in recent weeks as households grow increasingly concerned about inflation’s impact on personal finances and purchasing conditions. University of Michigan data showed the preliminary May consumer sentiment index fell from 49.8 in April to 48.2.

Consumers expect inflation over the next year to rise by 4.5%, slightly lower than the previous month, while long-term inflation expectations for the next five to ten years stood at 3.4%. Anxiety over the rising cost of living, coupled with sharply higher gasoline prices, continues to weigh heavily on sentiment.

According to AAA data, average U.S. gasoline prices this week exceeded $4.50 per gallon for the first time since July 2022 and have risen more than 50% since the outbreak of the Iran war. Survey director Joanne Hsu said about one-third of consumers spontaneously mentioned gasoline prices, while roughly 30% cited tariffs. Overall, consumers continue to feel pressured by rising costs, with surging gas station prices being the primary driver. The preliminary May current conditions index fell to 47.8, the lowest level on record, while the expectations index rose for the first time since January. Consumers’ assessments of their current financial conditions dropped to the lowest level since 2009, and buying-condition indicators also fell to a five-month low.

JPMorgan analysts said U.S. gasoline prices could “very possibly” rise to $5 per gallon as refineries prioritize jet fuel production at the expense of other refined products.

Goolsbee: All Interest Rate Options Remain on the Table

Chicago Fed President Austan Goolsbee said in remarks on Saturday that all interest rate options remain under consideration, not just rate cuts. At the end of April, the Federal Reserve kept rates unchanged, while three officials opposed language in the statement suggesting the next move could be a rate cut, arguing that the possibility of rate hikes should remain open.

Goolsbee’s comments reflect a shift among Fed policymakers away from considering near-term rate cuts, mainly due to inflationary pressures driven by energy price shocks related to the Iran conflict. He reiterated that both rate cuts and rate hikes remain possible and expressed concern about inflation, noting that price pressures extend beyond energy shocks alone.

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