Iran pushes negotiations as Hormuz standoff continues

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Iran pushes negotiations

Highlights

Iran says negotiations remain the route toward reopening the Strait of Hormuz.
Trump rejected Tehran’s latest proposal, but further talks are expected this week.
The dispute continues to affect a major route for global oil shipments.

Iranian Foreign Minister Abbas Araqchi said Tehran had not received a formal U.S. rejection through the mediators handling indirect negotiations and would wait for an official response before deciding its next step, Reuters reported. Trump, meanwhile, said he expects U.S. negotiators to hold additional talks with Iran this week. Meanwhile, Qatar and other regional mediators continue to shuttle between the two sides.

Hormuz remains at the center of negotiations

Iran presented its latest proposal during the U.N. General Assembly in New York. The plan linked reopening the Strait of Hormuz and resuming broader negotiations to U.S. steps, including lifting its naval blockade, easing restrictions on Iranian oil sales, and restoring a regional cease-fire.

Trump rejected the proposal on Saturday. The two governments remain divided over sequencing: Tehran is seeking changes to U.S. economic and military pressure before wider negotiations advance, while Washington wants nuclear concessions to be part of the process.

Iranian President Masoud Pezeshkian has also indicated that Tehran is prepared to discuss its nuclear program while insisting that any agreement must be reciprocal.

Regional conflict raises the stakes

The negotiations are unfolding against a conflict that has lasted nearly seven months and disrupted commercial shipping through Hormuz. The war began with U.S. and Israeli strikes on Iran on Feb. 28 and has since spread across the region, with Iranian and allied forces targeting U.S. partners and shipping routes.

Hormuz is central to the economic consequences. Although tanker traffic continues under U.S. protection, volumes remain below prewar levels, leaving energy markets sensitive to developments in the negotiations.

Oil prices rise as diplomatic uncertainty persists

Oil futures moved higher as traders assessed the uncertain diplomatic outlook and the risk of continued disruption around Hormuz. December Brent futures rose 2.07% to $99.46 a barrel, according to the latest market data provided, while November WTI futures climbed 2.43% to $94.66 a barrel.

The gains underline how closely oil markets remain tied to the negotiations. A deal that restores more regular shipping through Hormuz could ease supply concerns, while a prolonged deadlock would leave a geopolitical risk premium embedded in crude prices.

Earlier, we reported that U.S.-Iran conflict risks rise as Trump rejects a conditional Strait of Hormuz proposal.

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