Iran is standing firm on its seven-day proposal to reopen the Strait of Hormuz, with Foreign Minister Abbas Araghchi stating that Iran would not soften its conditions. President Trump, however, rejected Iran's latest proposal, though he indicated that negotiations are expected to resume this week. Trump told Axios that the conditions Iran is now demanding are something Washington might have agreed to a year ago, suggesting Iran has overplayed its hand. Araghchi, in a television interview, sought to place the responsibility on the US president to accept Iran's demands, emphasizing that these demands are "not new" and were part of a memorandum of understanding (MOU) signed in mid-June that led to a fragile ceasefire.
US and Iranian negotiators had been exploring a deal to reopen the strait in exchange for Washington lifting its blockade on Iranian ports. This proposed pact was similar to the June MOU, which ultimately collapsed. Trump stated on Saturday that he rejected Iran's proposal because "They want to make a deal where they open the strait immediately because they’re losing so badly." Araghchi countered that while negotiations are always possible, Iran has no reason to re-engage with the current US administration due to repeated attacks during Trump's second term, even threatening a "doomsday war" if aggression continues.
The rejection of Iran's proposal has reignited concerns about Middle East tensions, causing oil prices to rise and US Treasuries to slip. Brent crude climbed 1.3% to just under $106 a barrel as trading began on Monday in Asia. Treasury Secretary Scott Bessent asserted that the US economic pressure campaign against Iran is effective, noting that China, Iran's largest oil buyer, has significantly reduced its support. Bessent predicted that Iran would make its final oil delivery to China within the next two weeks, leaving them with limited options other than negotiating.
The Wall Street Journal reported that negotiators are also pressing Iran to make concessions on its nuclear program, a top priority for Trump, to revive peace talks. Iranian President Masoud Pezeshkian, speaking at the United Nations General Assembly, reiterated that Tehran would not permit freedom of navigation through the Strait of Hormuz while sanctions and a US blockade persist, and would not abandon its right to develop nuclear technology for economic purposes.
