The United States government is currently reviewing a fresh proposal from Iran aimed at reopening the Strait of Hormuz, nearly two months after a joint US-Israeli offensive rattled global markets and disrupted key energy routes.
Despite a ceasefire, efforts to end the Middle East conflict and fully restore operations along the strategic waterway have yet to produce a breakthrough, with negotiations between both sides remaining inconclusive.
US President Donald Trump on Monday convened a meeting with top security officials to examine the proposal, which was reportedly transmitted to Washington through Pakistan. According to Iran’s Fars news agency, the communication outlined Tehran’s non-negotiable terms, including positions on nuclear activities and control of the Strait of Hormuz.
Confirming the development, White House spokeswoman Karoline Leavitt said the proposal was “being discussed.”
Offering a cautious reaction, Secretary of State Marco Rubio said, “it’s better than what we thought they were going to submit,” but raised doubts over Tehran’s intentions.
“We have to ensure that any deal that is made, any agreement that is made, is one that definitively prevents them from sprinting towards a nuclear weapon at any point,” he said.
Meanwhile, Iran has accused Washington of derailing previous rounds of talks. Speaking during a visit to Russia, Iranian Foreign Minister Abbas Araghchi blamed US demands for the failure to secure an agreement.
“The US approaches caused the previous round of negotiations, despite progress, to fail to reach its goals because of the excessive demands,” he said.
Araghchi’s diplomatic trip included stops in Oman and Pakistan, both playing key roles in mediation efforts. While expectations were high for renewed talks, Washington cancelled a planned visit by its envoys, Steve Witkoff and Jared Kushner.
Addressing the setback, Trump told Fox News that Iran remains free to initiate discussions, stating, “they can call us,” while insisting the cancellation does not indicate a return to conflict.
Iran has maintained that any security guarantees in the Gulf would depend on assurances that the US and Israel would not launch further attacks, according to its envoy to the United Nations.
During talks in Saint Petersburg, Russian President Vladimir Putin and Araghchi reaffirmed their countries’ “strategic relationship,” with Moscow pledging support for efforts to end the war.
Araghchi also defended Iran’s position, saying the conflict—triggered by the February 28 strikes by the US and Israel—demonstrated “Iran’s true power” and resilience.
However, within Iran, citizens continue to grapple with severe economic hardship. A business owner, Farshad, told AFP, “Everything in the country is up in the air right now. I have not worked for a long time.”
“The country is in complete economic collapse.”
Another resident, Shervin, a 42-year-old photographer, described worsening financial strain.
“It is the first time that I have reached a point where I was late on my rent. I still don’t have any projects,” he said.
Although the ceasefire remains in place, its economic consequences linger. Iran’s blockade of the Strait of Hormuz has significantly disrupted the flow of oil, gas, and fertiliser, pushing global prices higher, while the US has responded by restricting Iranian port activity.
With fuel costs rising at home, Trump is also facing mounting political pressure ahead of the November midterm elections, as public sentiment increasingly turns against the war.