President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz within seven days, with Tehran vowing not to back down from its conditions for ending the standoff [1][4][9]. The proposal, conveyed through Qatari mediators, would have reopened the strait and resumed nuclear talks in exchange for the United States lifting its naval blockade of Iranian ports, releasing at least $12 billion in frozen assets and easing oil sanctions [2][6][9].
Trump told reporters at the White House that he rejected the deal because Iran is "losing so badly" and wants to open the strait immediately, asserting that the US has "total control" of the waterway and has imposed "the greatest blockade in military history" [5][6][8]. In a phone interview with Axios, Trump said he expects American negotiators to resume talks with Iran during the week and that he "constantly thinks about resuming attacks" on Iran [1]. The Wall Street Journal reported that Trump told aides he expects to resume bombing Iran after November's midterm elections, partly to preserve dwindling munitions [2][19].
US Ambassador to the United Nations Mike Waltz called Iran's offer "a pretty cynical attempt to put something on the table that they knew was unacceptable," saying Tehran demanded an end to the blockade, sanctions relief and access to billions in assets "just to talk" [4][22][23]. US NATO Ambassador Matthew Whitaker described the offer as "a fake deal" [12]. US negotiators told Iran during indirect talks in New York that Iran does not control the strait and therefore cannot attach conditions to it [14].
Iranian Foreign Minister Abbas Araghchi said Iran's conditions for reopening the strait are clear and non-negotiable: ending the US naval blockade, lifting oil sanctions, releasing frozen assets and a regional ceasefire including Lebanon [4][5][6][10][17][28]. Araghchi described a seven-day timetable under which initial steps would begin in four to five days, the strait would reopen on the sixth day, and definitive talks including the nuclear file would start on the seventh, though other accounts described the reopening as slated for the seventh day [5][7][24]. "Our conditions are clear, and any move toward reopening the Strait of Hormuz is contingent upon these conditions being fulfilled. We will not back down from them," Araghchi stated [4][21][28].
Iranian President Masoud Pezeshkian said the plan was developed in coordination with Supreme Leader Mojtaba Khamenei and that Iran has not walked away from the negotiating table but "no longer trusts the United States" after the collapsed June memorandum of understanding [5][9][28]. The two sides blame each other for the memorandum's collapse: Waltz said 146 nations condemned Iran for violating it, while Araghchi insisted Washington broke it first [23][24]. Pezeshkian told CBS that Iran does not seek a nuclear weapon, will allow IAEA inspectors into the country, and will honor any commitment it makes if the US accepts the proposal [19]. Araghchi told NBC's Meet the Press that Iran is "fully prepared" both to negotiate and to confront any new aggression, "even if it comes to a doomsday war," leaving the choice between diplomacy and war to Trump [20][23].
Iranian military commanders rejected the premise that the US controls the strait. Armed forces spokesman Abu al-Fadl Shekarchi said "إدارة مضيق هرمز بيد إيران" (administration of the Strait of Hormuz is in Iran's hands) and warned that any ship crossing outside the Iranian-designated route "will not be safe" [3]. The Revolutionary Guards declared Iran the "الطرف المنتصر" (victorious party) in the war, said it controls the strait, and claimed to have seized an American Remus 600 underwater drone used for espionage [4][13][19][22]. Guards spokesman Hossein Mohebi said Iran "will not cease punishing the US until Iran's seven conditions are met," with an end to hostilities in Yemen among Tehran's demands [4][6][28]. Army Chief Amir Hatami said the war is not over and warned that "if Iran cannot trade, if Iran cannot live, no one will be able to trade or live" [13][22][25]. Parliament Speaker Mohammad Baqer Qalibaf accused the US of "gaslighting" by claiming Hormuz is open, citing oil-price premiums of $35 over pre-invasion levels as market proof that Iran still controls the waterway [26].
Iran's customs data show non-oil exports fell about 28.2% and imports about 26.1% in the first five months of the year, with oil exports down to 255,000 barrels per day [38]. Eighty-three percent of Iran's 210 million tons of imports pass through southern maritime borders now blocked by the US naval blockade [38]. Ordinary Iranians described cargo stranded for months in Hong Kong, Karachi and Jebel Ali, freight costs rising from about $3,000 by sea to at least $16,000 by land, and shortages of basic goods including medicine [37][38]. US Energy Secretary Chris Wright said the running average of crude oil in transit through the strait was nearly 13 million barrels per day, and US Central Command said its forces helped move more than one billion barrels of crude out of the Gulf and redirected 122 commercial vessels [18][31].
War-risk insurance premiums in Hormuz have reached four times the five-year average, with additional war-risk premiums reaching up to 10% of cargo value and adding $10-20 million per transit [32][35]. South Korea's four major refiners formed task forces to secure alternative crude, with the government securing emergency barrels from the UAE and Kuwait and holding approximately 157 million barrels in reserves [36]. China has pursued import-source diversification and strategic reserves of nearly 1.4 billion barrels, with Russian and Brazilian imports surging as Iranian crude is squeezed [33]. Iraq's exports collapsed to roughly half of pre-crisis levels, with the country seeking alternative routes via Turkey and Syria [39]. Brazilian inflation data showed March IPCA rising 0.88% on a 4.59% fuel jump [41], and Russian analysts at B1 forecast Brent above $150 per barrel if the blockade lasts more than five weeks [42].
Legal analysts argue the US blockade and strikes on neutral-flagged merchant vessels violate Article 2(4) of the UN Charter's prohibition on the use of force, and that attacks on third-country flagged vessels may constitute fresh uses of force against those flag states [29]. China's foreign ministry described the US blockade as "危险和不负责任的行为" (a dangerous and irresponsible act) [34]. In the US Senate, a war powers resolution to halt the Iran war was rejected 49-50, with four Republican senators joining Democrats, as Senator Tim Kaine accused Republicans of enabling "this ridiculous and illegal war" and Senator John Kennedy called on Trump to give a prime-time address explaining the war strategy [30]. Kennedy also urged continued sanctions and blockade, calling the Iranian proposal not serious [31].
Saudi Foreign Minister Faisal bin Farhan said "the kingdom rejects any party's use of these vital passages as a tool for pressure, threat, or harm to the interests of states" [28]. Turkish Foreign Minister Hakan Fidan said Turkey's position is to reopen the strait through peace rather than a military peace force [43]. Russian Foreign Minister Sergei Lavrov said Russia stands ready to "constructively contribute to stabilising this strategically important region" [28]. Qatar's foreign ministry rejected the use of Hormuz as a pressure card and supported mediation efforts led by Pakistan [40], while Oman's foreign minister called on all parties to continue open negotiations and cooperate with Oman's efforts to protect navigation [12][31].
Andreas Krieg, an associate professor at King's College London, said Iran's maritime attacks deliberately spread the conflict's economic costs beyond its borders and that assuming economic pain produces submission is a mistake. "The next Iranian move is therefore likely to be an attempt to increase the pain experienced by the Gulf rather than simply absorb further American pressure," Krieg stated [18].
Trump told Axios that American negotiators would engage Iran within days despite the rejection [1][22], while Araghchi said Iran awaits a clear response through mediators before deciding on next steps [12][16]. Explosions were reported near Qeshm Island hours after Trump's rejection, with anti-ship missiles and drones reportedly fired at vessels transiting the waterway [18]. Iran's Persian Gulf Strait Authority warned ships that using "illegal routes" risks financial and life losses and could restrict future passage [21], and the Revolutionary Guards released video of a second US underwater drone it said it seized this month [18].