India, May 12 -- Tensions between the United States and Iran escalated sharply on Monday as Tehran warned Washington to accept its latest 14-point peace proposal or face "failure," while US President Donald Trump rejected the offer, calling it a "piece of garbage."

The diplomatic standoff comes amid worsening instability in the Gulf region, where shipping through the Strait of Hormuz has slowed significantly and global oil prices have surged past $100 per barrel amid fears of supply disruption.

Iranian negotiators said the proposal seeks an end to hostilities, lifting of sanctions, restoration of frozen assets, and changes to military deployments in the region. However, US President Donald Trump dismissed the offer outright, saying it w...