President Trump on Monday rejected Iran's seven-day proposal to reopen the Strait of Hormuz, calling it "unacceptable." The Iranian offer, presented at the UN General Assembly, included the US lifting its naval blockade, waiving sanctions on Iranian oil sales, and releasing an estimated $12 billion in frozen Iranian assets. In return, Iran would reopen the crucial shipping lane and begin negotiations on a final agreement, including its nuclear program, within seven days. Trump's rejection signals continued disagreement over who should make the initial concessions, with the US administration believing economic pressure is effectively weakening Iran's negotiating position.
US officials indicated that while Iran has shown flexibility on nuclear issues, the two sides remain divided on the timing and sequence of commitments. US envoy to the United Nations, Mike Waltz, stated that Trump rejected the proposal because it demanded immediate lifting of sanctions and asset release without sufficient assurance of Iranian good faith in future negotiations. Treasury Secretary Scott Bessent also asserted that the US campaign to squeeze Iran's economy is working, predicting that Iran will exhaust its oil delivery capacity to China within two weeks, leaving them with limited options besides negotiation.
Analysts, such as Andreas Krieg of King's College London, suggest Trump's calculation is that the combination of the naval blockade and economic isolation is squeezing Iran significantly, making its latest proposal a sign of weakness. However, experts also acknowledge the political risks for Trump, as continued high energy prices and military exposure ahead of November's midterm elections could be detrimental. An August Reuters/Ipsos poll showed 63% of Americans opposed the US-Israel war on Iran. Oil prices climbed 1.3% to nearly $106 a barrel after Trump's rejection, reflecting renewed concerns about Middle East tensions.
Separately, OpenAI reportedly postponed the debut of its new AI model. This development in the tech sector was mentioned in the Bloomberg headline alongside the geopolitical news, though specific details regarding the AI model's delay were not elaborated upon in the provided context.
