Full Breakdown
Trump Administration Signals End to Iran Ceasefire, Threatens Resumption of Strikes
5/13/2026, 9:18:51 AM
The Administration’s Position on the Ceasefire
President Donald Trump dismissed Iran’s latest peace proposal as “garbage” and warned that the United States will either reach a deal or “decimate” Tehran. He added, “One way or the other, we win,” and described the truce as “on massive life support.” Defense Secretary Pete Hegseth told a congressional hearing that the Pentagon “has a plan to escalate, if necessary. We have a plan to retrograde, if necessary. We have a plan to shift assets,” but declined to reveal details.
Iran’s Counteroffer and Threats
Iran’s state broadcaster reported that Tehran’s offer included U.S. war reparations, formal recognition of Iranian sovereignty over the Strait of Hormuz, and the lifting of American sanctions. A spokesperson for the Iranian Parliament’s national-security committee, Ebrahim Rezaei, warned that Iran could enrich uranium to 90 percent purity—a weapons-grade level—if attacked again.
Recent Developments and Cost of the Conflict
Pentagon comptroller Jules W. Hurst III testified that the war, which began when the United States and Israel started bombing Iran on 28 February, has cost the United States $29 billion (S$37 billion) to date, up from an earlier estimate of $25 billion. The figure excludes repair costs for more than a dozen U.S. bases damaged by Iranian missiles and drones, for which no reconstruction estimate is available.
General Dan Caine, chairman of the Joint Chiefs of Staff, assured lawmakers that “we have sufficient munitions for what we’re tasked to do right now.”
The U.S. Labor Department reported that consumer-price inflation rose to 3.8 percent in April, driven largely by high energy costs linked to the closed Strait of Hormuz.
Why the Decision Matters
Resuming strikes could further tighten the strait, sustaining elevated oil prices that contribute to U.S. inflation. Trump asserted that once the war ends, “you’re going to see oil prices drop.” The conflict has also forced the Pentagon to divert bombs, missiles, and other hardware from commands in Asia and Europe, raising concerns about U.S. readiness to confront other potential adversaries such as Russia and China.
Official Statements & Responses
- Donald Trump: Dismissed Iran’s offer, warned of decisive action, and framed the truce as unsustainable.
- Pete Hegseth: Stated the existence of escalation, retrograde, and asset-shift plans without providing specifics.
- Ebrahim Rezaei: Indicated Iran’s willingness to consider 90 percent uranium enrichment if attacked.
- Jules Hurst III: Presented the latest cost assessment and noted unknown base-reconstruction expenses.
- General Dan Caine: Confirmed current munitions sufficiency.
Criticism & Opposition
Analysts highlighted that reparations and recognition of Iranian control over the Strait of Hormuz are “non-starters” for the Trump administration. They noted that any sanction relief would be contingent on Tehran making “major concessions on its nuclear programme.”
Conflicting Reports & Gaps
- Cost estimates differ: $25 billion reported two weeks earlier versus $29 billion at the latest hearing.
- Iran’s enrichment threat: The seriousness and technical capability remain unclear.
- Base reconstruction: No reliable estimate exists for repairing U.S. facilities damaged by Iranian attacks.
Verbatim Quotes
- “We’re either going to make a deal or they’re going to be decimated,” — Donald Trump, President of the United States
- “One way or the other, we win.” — Donald Trump, President of the United States
- “We have a plan to escalate, if necessary. We have a plan to retrograde, if necessary. We have a plan to shift assets.” — Pete Hegseth, Secretary of Defense
- “on massive life support.” — Donald Trump, President of the United States
- “As soon as this war is over, which will not be long, you’re going to see oil prices drop,” — Donald Trump, President of the United States
- “We have sufficient munitions for what we’re tasked to do right now,” — General Dan Caine, Chairman of the Joint Chiefs of Staff
What’s Next
President Trump is scheduled to travel to Beijing for a summit with Chinese President Xi Jinping, where diplomatic options for de-escalation may be discussed. Additional congressional hearings on the war’s cost and strategy are anticipated.
