US President Donald Trump has rejected an Iranian proposal to reopen the Strait of Hormuz to commercial shipping within a week. He stated to reporters at the White House that Tehran 'wants to make a deal where they open the Strait immediately because they're losing so badly.'
In a post on Telegram, Iran's Foreign Minister Abbas Araghchi acknowledged Trump's comments but indicated that Tehran would wait for an official response from mediators. On Friday, Araghchi had told reporters at the UN in New York that an agreement could be reached 'if the necessary conditions are met' and that these conditions were outlined in a memorandum of understanding (MOU) signed by the two countries in June.
The Strait of Hormuz, a vital waterway through which approximately 20% of the world's gas and oil supply typically flows, has been effectively closed since the outbreak of war in February. Trump stated, 'I'm rejecting their deal,' adding that the US already had 'total control' of the strait, with 'massive amounts of oil' passing through it. He remarked, 'They want to make a deal, and I think that's fine. I like making a deal, too. But that deal would not be acceptable.'
Araghchi commented that Trump 'has made many good statements, as well as many contradictory ones, which unfortunately we hear frequently.' He expressed that he would await the 'definitive views' of mediators and that Tehran 'will make a decision based on that.'
On Friday, the Wall Street Journal cited officials stating that Trump was skeptical Iran would meet his demands and had informed his staff that he viewed a renewed bombing campaign as probable. Iran's response to US and Israeli air strikes, which began in late February, included attacks on Israel and US bases in the Gulf and actions to block the Strait of Hormuz. The closure has led to significant fluctuations in energy prices.
The economic impact has increased pressure on Trump to find a resolution to the conflict, especially as the US approaches Congressional elections in November. Araghchi noted that Iran did not introduce any new conditions in its latest proposals, stating, 'If the necessary conditions are met, the strait can be reopened, a normal maritime passage restored within seven days.' He added that 'the actions that the United States should take are not new. They are all already in the MOU... The choice now rests with the United States.'
Iranian President Masoud Pezeshkian told CBS News that an agreement based on the MOU signed in Pakistan could restore normalcy if the US agrees to proceed accordingly. However, Kirsten Fontenrose, a former National Security Council member during the first Trump administration, stated there is no interest in restarting discussions around the MOU as it is perceived as unfavorable in the US, and Iran is 'pushing against a very closed door.'
The MOU aimed to establish a ceasefire and partially reopen the Strait of Hormuz. The 14-point agreement stipulated that Iran would not pursue nuclear weapons and included commitments from the US, Iran, and their allies to cease military operations on 'all fronts,' end a US naval blockade, and lift other sanctions. However, the agreement collapsed after both sides resumed military actions. Iran has targeted vessels it claims attempted to cross the strait without authorization, while the US has struck Iranian sites in the strait and maintained a blockade of Iranian ports, disrupting Iran's economy.
Trump has claimed the US has successfully facilitated oil passage through the Strait of Hormuz. Shipping data indicates a recent 10-day average of approximately 18 transits per day, with numbers dropping as low as nine vessels on certain days, according to Kpler, a commodities analytics firm cited by Reuters. The situation has been further complicated by Houthi attacks on Saudi oil installations. Yemen's Houthis, allied with Iran, have intensified efforts to disrupt Saudi oil exports via the Red Sea, which is located on the opposite side of the Arabian Peninsula from the Strait of Hormuz. The group recently seized strategic areas of Yemen's Red Sea coast, including the port of Mokha, which overlooks the Bab al-Mandab Strait, another critical shipping chokepoint.
On Saturday, the Saudi-led coalition in Yemen reported intercepting two ballistic missiles and drones launched by the Houthis towards Saudi Arabia. US media have reported that Saudi leadership has requested military support from Trump. The US president indicated at the UN General Assembly this week that he believed a deal with Iran could be reached after the November elections, while also contemplating whether to 'annihilate the Islamic Republic' to facilitate a quick rebuilding.
Araghchi stated on Friday that 'peace cannot be built through threats of annihilation.'