Iran-US deal talks have taken a potentially significant turn after Iranian Foreign Minister Abbas Araghchi said Tehran has proposed an arrangement that could reopen the Strait of Hormuz within a week, provided Washington accepts conditions set out in a June memorandum of understanding.
The proposal comes as the conflict continues to disrupt one of the world’s most important energy and shipping routes. The Strait of Hormuz previously carried around one-fifth of global oil and liquefied natural gas flows, making any prolonged closure a major concern for governments, businesses and consumers worldwide.
Iran-US deal could restore shipping within seven days
Speaking to reporters at the United Nations in New York, Araghchi said the strait could return to normal maritime traffic within seven days if the “necessary conditions” were met. He said those conditions were already included in the agreement signed in June and that Iran had passed its proposal to the United States through Qatar.
“The choice now rests with the United States,” Araghchi said, arguing that the steps required from Washington were not new. He did not provide a detailed public list of demands, but the June memorandum reportedly included provisions covering a ceasefire, sanctions relief, an end to a US naval blockade and arrangements for the safe passage of commercial vessels.
Iranian President Masoud Pezeshkian also said a ceasefire process could begin immediately if the United States agreed to proceed under the memorandum. He added that Iran would permit UN nuclear inspectors to return, while rejecting claims that Tehran was seeking to develop nuclear weapons.
Washington weighs proposal as tensions remain high
A US official said discussions through mediators were positive and included nuclear issues. However, the United States has not yet issued an official response to Iran’s offer.
Reports cited by US media said President Donald Trump had rejected the proposal privately and remained doubtful that Iran would meet his conditions. The reports also suggested that Trump had told advisers a renewed bombing campaign was possible.
The US position appears to be that it has considerable leverage. One American official said Washington was in a strong position because of its control around the Strait of Hormuz and therefore was not under pressure to reach an immediate agreement.
The June memorandum was intended to establish a ceasefire and partially reopen the waterway, but the arrangement collapsed soon after both sides resumed military strikes. Iran has targeted vessels it says attempted to pass without authorisation, while the United States has struck Iranian positions and maintained restrictions affecting Iranian ports.
Energy markets and global shipping face renewed risks
Even though some vessels continue to transit the strait, shipping activity remains sharply reduced. Data cited by Reuters showed a recent ten-day average of approximately 18 transits per day, with some individual days recording only nine vessels.
The uncertainty has contributed to volatility in energy markets. A sustained disruption could affect:
- Crude oil and liquefied natural gas prices
- Marine insurance and freight costs
- Refinery supply chains across Asia and Europe
- Household energy bills and transport costs
- Global food and manufacturing prices
The wider regional picture is also deteriorating. Yemen’s Houthi movement, which is aligned with Iran, has intensified attacks linked to oil exports and shipping routes in the Red Sea. The group has reportedly captured strategically important areas, including the port of Mokha near the Bab al-Mandab Strait.
Houthi attacks on Saudi oil infrastructure have added to pressure on Riyadh. A Saudi-led coalition said it had intercepted ballistic missiles and drones launched towards Saudi Arabia, while reports indicated that Saudi Crown Prince Mohammed bin Salman had sought additional military support from Washington.
Trump links potential agreement to political timetable
During a speech at the UN General Assembly, Trump suggested that a deal with Iran could follow the US congressional elections in November. He presented the choice as one between an agreement that would allow Iran to rebuild and further military action.
Iran has rejected threats and coercion. Araghchi said peace could not be created through threats of annihilation, signalling that Tehran remains unwilling to accept an agreement under what it considers intimidation.
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What happens next?
The immediate question is whether Washington will formally respond to Iran’s proposal and whether mediators can bridge the differences over sanctions, military activity, nuclear inspections and shipping access.
A reopening within seven days would ease pressure on energy markets, but restoring confidence among shipping companies could take longer. Commercial operators are likely to require reliable security guarantees before returning to normal routes.
The proposed Iran-US deal could offer a route towards reopening the Strait of Hormuz, but major disagreements remain unresolved. Until both sides confirm the terms and halt military operations, the global energy and shipping markets are likely to remain highly sensitive to every diplomatic and military development.
