Oil finds some bids as Iran’s maximalist ceasefire demands clash with US military buildup.Summary:Iran responds to ceasefire proposal with maximalist demands (US bases closure, sanctions removal, Hormuz fees)US officials view terms as unrealistic, reducing likelihood of near-term dealTrump simultaneously pursuing diplomacy and military escalationUS to deploy ~10,000 additional troops, including 82nd Airborne and MEUsReports suggest 2–3 more weeks of war likely, even with talksDrone strike hits fuel tank at Kuwait airport; sirens across GulfOil ticks higher as markets grow increasingly sceptical on de-escalationIran’s response to US ceasefire proposals is being viewed by markets as a major obstacle to de-escalation, with a set of demands that officials have characterised as unrealistic and unlikely to gain traction in Washington.According to reporting from the Wall Street Journal, Tehran has called for the closure of all US military bases in the Gulf, the removal of all sanctions, an end to Israeli operations against Hezbollah, and the establishment of a new framework for the Strait of Hormuz that would allow Iran to charge transit fees. The proposal also excludes any negotiations over its ballistic missile program.Taken together, the conditions far exceed what would typically be considered a starting point for negotiations, reinforcing market doubts that a ceasefire can be reached in the near term.That scepticism is being compounded by developments on the ground. The United States is moving ahead with a significant military buildup, with elite units including the 82nd Airborne Division and two Marine Expeditionary Units expected to add roughly 10,000 troops to the region. This would bring total US forces in the Middle East to around 60,000.Officials suggest the dual-track approach remains in place, with President Trump keeping both diplomatic and military options open. However, reports indicate that even if talks proceed, planning assumptions still allow for another two to three weeks of conflict, underscoring the limited near-term prospects for de-escalation.Meanwhile, tensions continue to spill into regional infrastructure. CNN reported that drones struck a fuel tank at Kuwait International Airport, sparking a fire, while air raid sirens were activated in both Kuwait and Bahrain amid fresh Iranian attacks.For markets, the combination of maximalist demands, continued military escalation, and direct strikes on energy-related infrastructure has shifted sentiment back toward caution. Oil prices, which had briefly eased on hopes of diplomatic progress, are now moving higher again as traders reassess the likelihood of a prolonged disruption to Gulf energy flows.The evolving situation reinforces a key dynamic: even as diplomatic channels remain open, the balance of risks continues to skew toward escalation, keeping geopolitical risk premia firmly embedded across energy markets. This article was written by Eamonn Sheridan at investinglive.com.