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Trump rejects Iranian peace proposal, WSJ reports

Published by Global Banking & Finance Review

Posted on September 26, 2026

4 min read

· Last updated: September 26, 2026

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Trump Rejects Iran Peace Plan to Reopen Strait of Hormuz, WSJ Reports

Main Developments in US-Iran Strait of Hormuz Crisis

By Steve Holland and Parisa Hafezi

Trump's Response to Iran's Proposal

WASHINGTON/UNITED NATIONS, Sept 25 (Reuters) - US President Donald Trump has rejected Iran's proposal to reopen the Strait of Hormuz and halt regional fighting within seven days, and told aides he expects to resume bombing after November congressional elections, the Wall Street Journal reported on Friday, citing unnamed US officials.

Details of Iran's Peace Plan

Iran's Foreign Minister Abbas Araqchi had told reporters at the United Nations on Friday that Iran conveyed its peace plan to the US through Qatari mediators, saying a deal would trigger a seven-day countdown to reopening the strait and a pause in regional fighting.

"If there is seriousness on the US side to come to a deal and reopen the Strait of Hormuz, everything is now prepared," Araqchi said.

US Skepticism and Internal Discussions

A US official had told Reuters that the US and and Iran were having "positive and constructive discussions through the mediators," but Trump was privately skeptical that Iran that would meet his demands, the Journal report said. 

He has told his staff that he sees a renewed bombing campaign as likely, the Journal said.

Reuters could not immediately confirm the report.

Global and Regional Implications

Diplomatic efforts surrounding the UN General Assembly in New York underscored the global stakes of the seven-month-old conflict, which has disrupted oil flows through one of the world's most critical shipping lanes and drawn in regional and world powers.

Potential Outcomes if US Agrees

If the US were to agree, the warring parties could start wider talks "on mutually agreed subjects," Araqchi said. Tehran would reopen the Strait of Hormuz and hostilities would end on all fronts, including Lebanon. The plan in turn requires the United States to lift its blockade on Iranian ports, release Iran’s frozen funds, and waive its oil sanctions.

Return to Diplomacy?

History of Failed Diplomatic Efforts

The Iranian seven-day proposal comes after previous attempts at diplomacy have failed to end the war, which began on February 28 with US and Israeli strikes.

Since then the war has alternated between pauses and renewed strikes, killing thousands while degrading Iran's conventional forces and damaging Iran's already ailing economy.

Regional Escalation and Proxy Actions

Iran and its allies have retaliated by extending the conflict throughout the region. Iran has struck US allies in the Gulf with drones and missiles while its Houthi allies in Yemen have targeted Saudi interests. Iranian-aligned militias in Iraq were blamed for a pipeline attack that temporarily took more Saudi oil off the market. All the while, Iranian-backed Hezbollah has been engaged with Israeli forces in Lebanon.

Saudi Arabia and Allied Responses

With the Saudi-backed, internationally recognized Yemeni government under assault from Iran-linked Houthi fighters, and Houthi missiles striking inside Saudi Arabia, allies of the kingdom have united to show support.

Defense officials of Turkey and Pakistan, both partners in a joint defense pact with Saudi Arabia, met in Riyadh on Friday to review the security situation and discuss intelligence cooperation, military coordination, and integrating forces, the Saudi defense ministry said in a statement.

The statement came a day after Saudi, Pakistani and Turkish foreign ministers met within the framework of the Mecca Joint Defense Agreement.  

Humanitarian Impact in Yemen

The violence in Yemen has prompted a new humanitarian crisis, the United Nations children's agency said on Friday, reporting a rise in acute malnutrition among children.

Reporting Credits

(Reporting by Bo Erickson in Washington and Parisa Hafezi at the United Nationas; Additional reporting Hatem Maher, Yasmine Ghania and Ahmed Tolba in Cairo, Timour Azhari in Riyadh, and Tuvan Gumrukcu in Ankara; Writing by Aidan Lewis, Ros Russell and Daniel Trotta; Editing by Gareth Jones, Alex Richardson, Andrew Heavens, Sanjeev Miglani and Stephen Coates)

Key Takeaways

  • Iran offered a concrete ’7‑day plan’ via Qatari intermediaries to cease hostilities and reopen the Hormuz strait if the U.S. lifts sanctions, blockade and releases frozen assets — resembling a June memorandum (iranwire.com)
  • A Reuters US official described mediation as “positive and constructive,” but Trump privately remains skeptical and reportedly expects to renew bombing after the November congressional elections, according to the Wall Street Journal (marketscreener.com)
  • Oil prices dipped about 2% on mounting hopes of a truce, though Iran made clear it will not relent on its nuclear program even if the Hormuz proposal is accepted (marketscreener.com)

References

Frequently Asked Questions

What was Iran's peace proposal regarding the Strait of Hormuz?
Iran proposed reopening the Strait of Hormuz and halting regional fighting within seven days if the US lifted sanctions and released frozen funds.
Why did President Trump reject Iran’s peace plan?
According to the Wall Street Journal, Trump was skeptical Iran would meet US demands and expected to resume bombing after the November congressional elections.
What are the implications of tensions in the Strait of Hormuz?
The conflict has disrupted oil flows through a critical shipping lane, impacting global markets and raising regional security stakes.
Who are the main parties involved in the renewed Middle East conflict?
US, Iran, Saudi Arabia, Israeli forces, Houthis in Yemen, and allied militias across the region are key players in the ongoing conflict.
What humanitarian impact has the conflict had in Yemen?
The violence in Yemen has prompted a rise in acute malnutrition among children, according to the United Nations children's agency.

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