Iran is waiting for an official U.S. response to a plan that would reopen the Strait of Hormuz and pause Middle East fighting, after the Wall Street Journal reported President Trump had rejected the offer. Earlier reports of the proposal had already helped push Brent crude below $100 a barrel this week, and the strait remains a key flashpoint for oil supply.
Trump reportedly rejects Hormuz reopening plan
Iran was awaiting Washington's formal reply Saturday to a proposal, transmitted through Qatari mediators, that Iranian Foreign Minister Abbas Araqchi said would start a seven-day countdown to reopening the Strait of Hormuz and pausing hostilities across the region. But the Journal reported that Trump had already turned the offer down.
A U.S. official had previously described the mediated talks as "positive and constructive." Yet the Journal also reported Trump was privately sceptical Iran would meet U.S. demands and viewed renewed bombing as likely; Reuters said it could not independently confirm that account.
What Iran is offering, and what it won't give up
Araqchi said a deal could open the door to broader U.S.-Iran negotiations. Iran's proposal calls for hostilities to stop across the region, including in Lebanon, in exchange for Washington lifting its blockade on Iranian ports, releasing frozen Iranian funds and waiving oil sanctions. A senior Iranian official told Reuters, however, that Tehran would not compromise on its nuclear rights, including uranium enrichment or shipping highly enriched uranium abroad.
Hormuz risk still weighs on crude
The diplomatic push comes seven months after U.S. and Israeli attacks on Iran began the current conflict, which has disrupted oil flows through the Strait of Hormuz, a major global energy route. Araqchi also briefed Saudi Foreign Minister Prince Faisal bin Farhan on an understanding between Iran and Oman covering safe shipping routes through Hormuz.
Tensions around Saudi Arabia remain elevated as well. A Saudi-led coalition said Saturday it intercepted two Houthi drones headed toward Riyadh and a ballistic missile targeting Khamis Mushait. The Houthis have targeted Saudi cities, energy infrastructure and shipping since declaring a naval blockade against Riyadh in July, adding pressure to oil transportation while traffic through Hormuz remains largely blocked.
Markets have stayed sensitive to prospects for reopening the strait: earlier reports of Iran's proposal had already helped push Brent crude below $100 a barrel this week as traders weighed the chance of improved Middle Eastern supply flows.
Source: Economy News
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