Diplomatic efforts to end a seven-month conflict over the Strait of Hormuz reached a critical juncture on Saturday when US President Donald Trump publicly rejected an Iranian peace proposal, even as Iranian officials said they were still awaiting an official response through back-channel mediators. "They made a proposal but I reject it," Trump told reporters at the White House, arguing that Iran was pushing for a deal because it was "losing so badly." Iran's Foreign Minister Abbas Araghchi pushed back, saying Tehran had seen only an initial reaction and was waiting for mediators — primarily Qatar — to convey Washington's definitive position before making any decisions.
The proposal, unveiled by Iran during the UN General Assembly in New York earlier in the week, laid out a detailed seven-day timeline: the initial steps would take four to five days, the Strait of Hormuz would be reopened on the sixth day, and nuclear talks would begin on the seventh. In exchange, Iran demanded that the US lift its naval blockade of Iranian ports, release some frozen Iranian assets, restore sanctions waivers on Iranian oil exports, and observe a ceasefire "on all fronts" — including convincing Israel to halt attacks on Iran-backed Hezbollah in Lebanon. The plan would also allow UN nuclear inspectors access to Iran's damaged sites and its stockpile of highly enriched uranium. Iranian President Masoud Pezeshkian confirmed that Supreme Leader Mojtaba Khamenei backed the proposal and that it had been developed "in coordination" with him.
The Strait of Hormuz, a narrow waterway between Iran and Oman through which roughly a fifth of the world's traded oil passes, has been the focal point of the conflict that began on 28 February with US and Israeli attacks on Iran. Since then, the war has alternated between pauses and renewed strikes, killing thousands and devastating Iran's economy. Iran has struck US allies in the Gulf with drones and missiles, while its Houthi allies in Yemen have targeted Saudi interests. Houthi forces recently seized stretches of Yemen's Red Sea coast, including the port of Mokha overlooking the Bab el-Mandeb strait — another critical global shipping chokepoint. Saudi Arabia's coalition said it intercepted two ballistic missiles and drones launched toward the kingdom on Saturday.
Despite the impasse, a US official described discussions through mediators as "positive and constructive," and Iran insisted it had not walked away from the table. "Iran has not walked away from the negotiating table, but given past experiences, it no longer trusts the United States," Pezeshkian said after meeting UN Secretary-General António Guterres. However, a senior Iranian official told Reuters that Tehran would show no flexibility on its nuclear programme — including uranium enrichment or the transfer of its highly enriched uranium stockpile abroad — even if Washington accepted the broader peace deal, underlining the depth of the divide.
The stakes extend well beyond the region. The US naval blockade has placed intense pressure on Iran's economy, while disruptions to oil flows through the strait have driven up energy prices and increased the cost of living globally. The Wall Street Journal reported, citing unnamed US officials, that Trump is privately sceptical Iran will meet his demands and has told aides he expects to resume bombing Iran after November's US midterm elections — a signal that raises the prospect of further escalation before any diplomatic breakthrough. Analysts close to the administration have called Iran's overture an attempt to push against "a firmly closed door," reflecting the enormous gap that remains between the two sides.