Trump Rejects Iran Proposal to Reopen Strait of Hormuz

Donald Trump publicly rejected Iran’s conditional proposal to reopen the Strait of Hormuz and resume negotiations, calling it unacceptable. The proposal makes reopening the strait and resuming talks conditional on US action. Foreign Minister Abbas Araghchi acknowledged Trump’s public rejection but said Iran would await a definitive official US response through mediators and remained ready to negotiate.

The strait normally carries about one-fifth of global oil and gas supply.

Conveyed by Araghchi, Iran’s proposal would reopen Hormuz and resume nuclear talks within seven days if the US lifted its naval blockade, removed sanctions on Iranian oil sales and restored a regional ceasefire. It set out three conditions:

• Lift the US naval blockade.
• Remove sanctions on Iranian oil sales.
• Restore a regional ceasefire.

The sides remain divided over those priorities. The US side prioritises nuclear concessions and rejects Iran’s claimed authority to dictate terms for Hormuz, while Iran puts the blockade, sanctions and the waterway’s reopening at the front of any deal.

Iran’s government said it would not soften those conditions. The current proposal calls for restoring a regional ceasefire; Iran said its conditions were consistent with the earlier Islamabad memorandum of understanding, a June ceasefire agreement between the United States and Iran that collapsed in early July.

An offer rejected, but mediation continues

Axios reported that US envoys Steve Witkoff and Jared Kushner held indirect discussions with Araghchi in New York, on the margins of the UN General Assembly, with Qatar relaying messages. It also reported, citing a regional source with knowledge of the negotiations, that Qatari mediators presented a compromise proposal to both governments after discussing Tehran’s original plan.

Trump forecast that further US-Iran talks could take place because he believes Iran wants an agreement. Separately, two regional sources told Axios they expected another indirect round, with Qatar continuing efforts to revise the compromise text. Neither forecast confirmed that talks had been scheduled or that either government would accept an agreed text.

US and Iranian positions

Trump’s position is that Iran is seeking concessions it might have gained earlier and has weakened its hand by overplaying its leverage. US Ambassador to NATO Matthew Whitaker backed that view, describing the offer as half-measures and illusory deals intended to improve Iran’s international image.

Senator John Kennedy also called the offer unserious and argued that sanctions and the blockade should continue. He said Washington would eventually have to reach a settlement to open the strait or escalate, while opposing the deployment of US troops.

Araghchi argued that negotiation is the only route to ending the conflict and that Washington must demonstrate it is not pursuing the overthrow of Iran’s government.

Iranian President Masoud Pezeshkian said the United States must decide whether it wants the war to stop. Separately, he said Iran would admit UN nuclear inspectors under a potential long-term ceasefire arrangement.

“We only care about our national interests. We are ready for negotiations.”

Iran says Trump’s public refusal is distinct from the definitive official mediated response it awaits.

Traffic disruption and economic pressure

BBC and CNBC reporting described Hormuz as effectively closed or severely disrupted since the war began, even though limited escorted movement has continued. The strait normally carries about one-fifth of global oil and gas supply.

US officials and Trump said substantial oil volumes and dozens of ships were transiting the Strait of Hormuz under US protection. Those reported US-protected transits occurred alongside the broader disruption described by the BBC and CNBC.

US officials said roughly 60 million barrels had transited through Hormuz over 72 hours.

CNBC reported that vessel passages had fallen to nine. Trump said 29 vessels had been guided out under military supervision.

Bloomberg reported that Trump’s rejection was followed by rising oil prices and falling US equity-index futures. European energy commissioner Dan Jorgensen described the disruption as both an energy-price crisis and a supply crisis.

Sanctions and market pressure

Saudi Foreign Minister Faisal bin Farhan argued that attempts to close Middle Eastern waterways endanger global energy security and that freedom of navigation must be protected. The White House says Operation Economic Outcast widened secondary sanctions on entities and countries doing business with Tehran. It says the campaign is intended to increase pressure on Iran to halt attacks on vessels in the strait.

Treasury Secretary Scott Bessent said the economic campaign was already affecting Iran, citing flight restrictions imposed on Iranian carriers by Turkey, Oman and the United Arab Emirates. Economists cited by the BBC questioned how certain that assessment was, arguing that sanctions’ effectiveness depends on whether Iran’s major trading partners comply, particularly partners that have maintained commercial links despite earlier US restrictions. China, the biggest buyer of Iranian oil, ignored previous US sanctions and continued to do business with Tehran, the BBC reported.

Bloomberg commentators Dan Williams and Mike McGlone forecast that economic pressure could shape the next phase of diplomacy, citing rising fuel costs and changes in US supply and Chinese demand.

Military risks remain

Iran’s Revolutionary Guards naval forces said they had captured a US unmanned underwater vehicle in the Strait of Hormuz. The claim was an Iranian official statement and was not presented as independently verified in the reporting.

Saudi authorities said the Houthis fired dozens of missiles and drones at Saudi targets. Pezeshkian responded that the Houthis were responsible for their own actions and that Iran was not at war with Saudi Arabia.

US Ambassador David Perdue said Trump had warned China that direct or indirect help to Iran, including intelligence or military support, would be unacceptable. Trump has also left further military action as a possibility, saying additional US strikes on Iran could occur in coming weeks.

Representative Jim Himes argued that threats to annihilate Iran were nonsensical, saying Tehran had endured six months of severe US and Israeli pressure despite major military losses. He argued that Iran’s endurance demonstrated the limits of the existing military approach, short of attacks on civilians. Himes also forecast that continued attacks on shipping could push oil toward $120 (£90.67) a barrel and diesel toward $8 (£6.04) a gallon, with possible consequences for US midterm elections.

Omani Foreign Minister Badr Albusaidi urged self-restraint, foresight and dialogue, arguing that only consensual political solutions can create sustainable understandings. His position contrasts with Kennedy’s preference for maintaining coercive pressure unless Tehran changes course, while aligning with Araghchi’s insistence that a negotiated settlement is necessary.

Outlook

Trump also predicted that the war would end soon and that oil prices would fall substantially toward pre-war levels. He linked that forecast to his stated objective of preventing Iran from obtaining a nuclear weapon. The prediction contrasts with current market strain and the possibility of new strikes.

No source in the reporting established when a ceasefire or durable reopening of the strait might occur. It remains unclear whether the United States will modify its nuclear and sanctions demands, whether Iran will move from its stated conditions, or whether both governments will accept an agreed text arising from Qatar’s reported compromise proposal. Al Jazeera raised, as a possibility rather than an established fact, that Trump’s refusal may be intended to press Tehran into making additional concessions.