Iran is holding firm on its demands for reopening the crucial Strait of Hormuz, a key global energy chokepoint, even after U.S. President Donald Trump rejected its seven-day proposal. Iranian Foreign Minister Abbas Araghchi stated that Iran will not soften its conditions, which include a cessation of all hostilities in the Middle East, the release of frozen Iranian assets, the lifting of sanctions on Iranian oil, and an end to the U.S. naval blockade. Araghchi emphasized that Iran is ready to open the strait if the U.S. meets these conditions, which he says are not new. President Trump, however, told Axios that Iran has "overplayed its hand" and that the conditions Iran is asking for now are what Washington might have agreed to a year ago. He expects negotiations to resume this week despite his rejection of the current proposal.
U.S. Treasury Secretary Scott Bessent asserted that the U.S. economic pressure campaign on Iran is proving effective. He stated on Fox News' Sunday Morning Futures that China, historically the largest buyer of Iranian oil, has significantly reduced its assistance to Iran. Bessent predicted that Iran would make its final oil delivery to China within the next two weeks, after which it would have no other options, thereby increasing pressure on Iran to negotiate a deal regarding the Strait of Hormuz. This economic squeeze, according to Bessent, is the reason Iran is pushing for a deal.
Iran's President Masoud Pezeshkian, during his address at the United Nations General Assembly, reiterated that his country would not permit freedom of navigation through the Strait of Hormuz as long as sanctions and the U.S. blockade persist. He also met with UN Secretary-General Antonio Guterres, stating that Iran has not abandoned diplomacy but has lost trust in the United States due to past experiences. Meanwhile, Iran's Revolutionary Guards seized an American submarine drone in the Strait of Hormuz, further escalating tensions. Brent crude prices rose 1.3% to just under $106 a barrel as trading opened in Asia, reflecting renewed concerns about Middle East stability following Trump's rejection of the Iranian proposal.
