The White House has confirmed it is reviewing a fresh proposal from Iran aimed at reopening the strategically critical Strait of Hormuz, as diplomatic efforts to end the ongoing Middle East conflict remain deadlocked.
The latest development comes nearly two months after a joint military offensive by the United States and Israel against Iran disrupted global markets and triggered a sharp escalation in regional tensions. Although a ceasefire is currently in place, negotiations between Washington and Tehran have yet to produce a breakthrough.
According to officials, Donald Trump met with senior security advisers on Monday to assess the Iranian proposal, which was delivered through Pakistan acting as an intermediary. Reports indicate the document outlines Tehran’s key conditions, particularly on nuclear restrictions and control of the Strait of Hormuz.
White House spokeswoman Karoline Leavitt described the proposal as “under discussion,” while Marco Rubio suggested it exceeded initial expectations but cautioned against premature optimism.
“We must ensure that any agreement reached permanently prevents Iran from advancing toward nuclear weapons capability,” Rubio said, questioning the sincerity of Tehran’s intentions.
On the other side, Iran has blamed Washington for the collapse of earlier negotiations. Speaking during a visit to Russia, Iranian Foreign Minister Abbas Araghchi accused the United States of derailing progress with what he described as excessive demands.
During the trip, Araghchi met with Vladimir Putin in Saint Petersburg, where both leaders reaffirmed their countries’ strategic ties and expressed support for efforts to end the conflict.
Despite initial hopes for renewed dialogue, tensions resurfaced after President Trump cancelled a planned diplomatic mission involving envoys Steve Witkoff and Jared Kushner. While Trump maintained that Iran could still initiate talks, he insisted the cancellation did not signal a return to hostilities.
Iran has meanwhile insisted on security guarantees, demanding assurances that the United States and Israel would not launch further attacks before it considers easing restrictions in the Gulf.
Economic Fallout Deepens
Although active fighting has subsided, the economic consequences of the conflict continue to ripple globally. Iran’s blockade of the Strait of Hormuz—one of the world’s most vital energy corridors—has severely disrupted the flow of oil, gas, and fertilisers, pushing prices upward.
In retaliation, Washington has imposed restrictions on Iranian ports, further tightening economic pressure.
Inside Iran, the impact has been severe. Residents report worsening economic conditions, with businesses struggling and unemployment rising. Many citizens say they are unable to meet basic financial obligations, reflecting a broader economic downturn.
At the policy level, Iran’s Revolutionary Guards have signalled no immediate plans to lift the blockade. Lawmakers are also considering new legislation that would formalise Tehran’s control over the waterway, including the imposition of transit fees on vessels.
However, the proposal has drawn sharp criticism internationally. The head of the International Maritime Organization, Arsenio Dominguez, stated there is no legal basis for such charges, a position echoed by US officials who argue that global waterways must remain open and unrestricted.
Renewed Violence in Lebanon
Even as diplomatic efforts continue, violence has persisted on other fronts. In Lebanon, clashes between Israeli forces and Iran-backed Hezbollah have intensified despite an extended ceasefire arrangement.
Hezbollah leader Naim Qassem rejected the possibility of direct negotiations with Israel, describing such a move as unacceptable. Shortly after his remarks, Israeli forces launched fresh strikes on Hezbollah positions.
Israeli Prime Minister Benjamin Netanyahu defended the military action, citing ongoing threats from rocket and drone attacks. Defence Minister Israel Katz also issued a warning, accusing Hezbollah of escalating tensions.
Meanwhile, Lebanese President Joseph Aoun reiterated his administration’s goal of ending the prolonged state of conflict with Israel.
Military leaders in Israel have, however, warned that the situation remains volatile, with indications that the broader conflict could extend well into 2026.
