Mediators are still working with Iran and the United States on a deal to end the fighting and open the Strait of Hormuz, officials told the Associated Press on Monday. The talks, which are expected to resume on Monday, come as the war enters its eighth month and has caused widespread economic suffering. Multiple attempts to secure safe shipping on the world’s most crucial waterway have failed to date.
The draft proposal would first reopen the strait and lift the U.S. blockade, then remove sanctions. It would be carried out in line with a separate agreement Iran has been negotiating with Oman, which would allow shipping without tolls, a key demand of Tehran. The deal aims to temporarily manage traffic on what was seen as an international waterway before the conflict.
Despite President Trump’s public rejection of Tehran’s latest offer, officials said the U.S. has not officially ruled it out, suggesting his remarks may have been a negotiating tactic. The U.S. is also seeking Iranian concessions on its nuclear program, including allowing inspectors to enter the country, according to a third official. The Memorandum of Understanding signed in June that collapsed within days had intended to discuss the nuclear issue over a 60‑day period.
Iran’s latest proposal echoes the June deal but introduces a faster timeline. Foreign Minister Abbas Araghchi told a closed‑door meeting that Tehran pitched the plan as benefiting the U.S. in the midterm elections, and that a seven‑day timeline would begin once the U.S. accepts the plan. Both sides have suffered economically: the U.S. faces high oil prices as Iranian attacks on shipping continue, while Tehran grapples with a naval blockade and expanding U.S. sanctions that choke its oil sales. Brent crude has risen above USD 108.
The conflict has also spilled onto other fronts. Iran‑backed rebels in Yemen now threaten the Bab el‑Mandeb Strait, adding pressure on global markets. Iranian officials say they are willing to help mediate between the Houthis and Saudi Arabia, though the Houthi conflict is separate from the U.S.–Iran war. A statement attributed to Supreme Leader Ayatollah Khamenei on Monday highlighted the ‘painful blows’ inflicted on enemy forces near the strait and warned that the Arabian Sea would soon be rid of them.
