The diplomatic standoff between the US and Iran just got more complicated. President Trump responded to Iran’s counter-proposal to a US peace framework while simultaneously working the phones with Gulf state leaders and Israeli Prime Minister Benjamin Netanyahu, creating a multi-front negotiation landscape that has crypto markets on edge.

Iran’s counter-proposal, relayed through Pakistani mediators, came loaded with demands: immediate relief from US sanctions, an end to the naval blockade of the Strait of Hormuz, recognition of its sovereignty over the strait, war reparations, and a deferral of nuclear negotiations.

The diplomatic web gets tangled

Trump’s engagement with Gulf state leaders, including those…