Iran's Foreign Minister Abbas Araghchi announced on Friday that Tehran had conveyed a concrete seven-day plan to the United States through Qatar to reopen the strategic Strait of Hormuz. The plan involves meeting certain conditions to restore normal maritime passage within seven days. Araghchi emphasized that Iran does not accept coercion, threats, or intimidation and will not surrender its sovereign rights under pressure. The proposal was made during the UN's gathering of world leaders in New York, where new mediation efforts offered some optimism for progress toward a deal.
The plan reportedly includes a cessation of all hostilities in the Middle East for seven days, including in Lebanon, and the release of frozen Iranian assets estimated to be worth at least $12 billion. It also calls for the lifting of sanctions on Iranian oil and an end to the US naval blockade of Iran. On the seventh day of the truce, Iran would reopen the Strait of Hormuz. Iranian President Masoud Pezeshkian stated that the ceasefire process would begin from the day the US accepts it, and that an agreement based on a memorandum of understanding signed in Pakistan could restore normalcy.
However, within hours of Araghchi's comments, The Wall Street Journal reported that Trump had rejected the proposal, citing US officials familiar with the matter. The report noted that Trump was skeptical that Tehran would meet his demands and added that he sees a renewed bombing campaign as likely. Trump also posted an image to his Truth Social platform of a map showing the Strait of Hormuz circled and labeled "Trump Strait".
The Strait of Hormuz is a vital waterway that is key to the world's oil supply and central to the conflict between the US and Iran. The conflict has been at a stalemate for nearly seven months. Hossein Mohebi, a spokesman for the Revolutionary Guards, told AFP that ending hostilities in Yemen was also among Tehran's demands. The US and Iran signed a memorandum of understanding in June aimed at ending the war, reopening the strait, and launching talks on Iran's nuclear program.
However, the deal broke down shortly afterwards when Iran fired on commercial ships in Hormuz that it accused of deviating from their approved route through the waterway. Iran requires ships to obtain authorization before passage, citing security and sovereignty reasons. Ships that refuse to comply are regularly targeted, while the US sporadically bombs Iranian coastal areas in retaliation.
The conflict has had significant economic implications, with oil prices slipping below $100 a barrel after Trump said US-Iran talks were "very good". Saudi Arabia is also preparing to resume crude exports through its East-West pipeline. The global economy has shown resilience despite the Middle East war, with the OECD lifting its 2026 growth forecast to 2.9%.
The rejection of Iran's plan has raised concerns about the prospects for a peaceful resolution to the conflict. The US and Iran have been engaged in a long-standing dispute over Iran's nuclear program and its role in the region. The conflict has had far-reaching implications for global security and stability, and efforts to find a peaceful solution continue.
Key points
- Iran proposes a seven-day plan to reopen the Strait of Hormuz, but US President Donald Trump rejects the offer.
- The plan involves a cessation of hostilities, release of frozen assets, and lifting of sanctions on Iranian oil.
- The conflict between the US and Iran has had significant economic implications and raised concerns about global security and stability.
