Iran has offered to reopen the strategically vital Strait of Hormuz in exchange for the United States lifting its blockade and bringing an end to the ongoing conflict, according to two regional officials familiar with the negotiations.
The proposal, conveyed to Washington via Pakistan, suggests that discussions on Iran’s nuclear programme could be deferred to a later phase. However, indications suggest that Donald Trump is unlikely to accept the offer, as it leaves unresolved the core issues that triggered the conflict involving the US and Israel earlier this year.
Fragile Ceasefire Amid Strategic Deadlock
Despite a ceasefire currently in place, tensions remain high. The US and Iran continue to face off over control of the Strait of Hormuz — a critical maritime corridor through which nearly 20 per cent of the world’s oil and gas supplies pass during peacetime.
Washington’s blockade aims to restrict Iran’s oil exports, cutting off a key revenue stream. At the same time, Iran’s restriction of passage through the strait has disrupted global energy markets and placed pressure on US allies in the Gulf, who rely heavily on the route for exports.
The economic fallout has been widespread, with rising fuel costs triggering increases in prices of essential commodities, including food and fertilisers.
Oil Prices Surge as Strait Remains Shut
Iran’s control over the narrow entrance to the Persian Gulf has proven to be one of its most effective strategic tools in the conflict. The closure has stranded oil tankers and disrupted global supply chains.
As of Monday, Brent crude prices were trading at approximately USD 108 per barrel — nearly 50 per cent higher than levels seen at the start of the war. The spike has intensified political pressure on Washington, particularly ahead of key electoral timelines.
Diplomatic Moves Intensify
Iranian Foreign Minister Abbas Araghchi met Vladimir Putin in Saint Petersburg, signalling Tehran’s effort to consolidate diplomatic backing. Russia has historically been a key ally of Iran, and Moscow reiterated its support while calling for peace in the region.
Araghchi described the meeting as an opportunity to consult on evolving war developments, while regional diplomacy continued through parallel engagements with Pakistan, Oman, Qatar, and Saudi Arabia.
Pakistan has been attempting to mediate between Washington and Tehran, though recent in-person talks were cancelled in favour of potential remote negotiations.
Proposal Includes Delayed Nuclear Talks
Iran’s proposal also suggests postponing negotiations over its nuclear programme — a central concern for the US. President Trump has repeatedly emphasised that preventing Iran from acquiring nuclear weapons remains a non-negotiable objective.
While Tehran maintains that its nuclear programme is peaceful, Washington continues to push for the removal of Iran’s stockpile of highly enriched uranium.
Mounting Casualties and Regional Impact
The conflict has taken a heavy human toll. Thousands have been killed across multiple countries, including Iran, Lebanon, and Israel, with additional casualties reported among US personnel and UN peacekeepers.
Although ceasefires have temporarily reduced active fighting, a long-term resolution remains uncertain, with major disagreements still unresolved.
Mediation Efforts Face Challenges
Iran is also reportedly seeking Oman’s support for a mechanism to impose tolls on vessels passing through the strait — a move that could further complicate negotiations. However, Oman’s stance remains unclear.
Mediators, particularly from Pakistan, continue efforts to bridge significant gaps between the US and Iran, but progress has been limited so far.
(With inputs from Agencies)