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Trump rejects Iranian proposal to open Hormuz and end fighting - Headlines news and analysis from Global Banking & Finance Review
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Trump rejects Iranian proposal to open Hormuz and end fighting

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 Iranian Deal to Reopen Strait of Hormuz and End Middle East Fighting

US-Iran Negotiations and Regional Impact

By Trevor Hunnicutt, Parisa Hafezi and Menna AlaaElDin

Background of the Iranian Proposal

WASHINGTON/UNITED NATIONS/CAIRO, Sept 26 (Reuters) - US President Donald Trump said on Saturday he had rejected an Iranian proposal to reopen the Strait of Hormuz and end fighting in the Middle East.

Iran raised the initiative at the UN General Assembly in New York, saying it had been transmitted to the Americans via Qatari mediators and that it could reopen the strategic waterway and put an end to hostilities in the region within seven days.

Trump’s Response to the Proposal

But in comments to reporters at the White House, Trump said: "I reject their proposal. ... I rejected their deal.

"They want to make a deal to open the Hormuz Strait immediately because they're losing so badly," he said before leaving for Tennessee. "We're winning tremendously.

"They want to make a deal and I think that's fine, I like making a deal too. What they want to do is immediately open the Hormuz Strait ... because they have no money coming in, because they get their money from the Hormuz Strait," Trump said.

Economic Blockade and US Control

The US has imposed an economic blockade on Iran to put pressure on Tehran to lift its blockade of Hormuz, which has drastically reduced shipping through the strait, even though Trump again asserted that the US had control of the waterway.

The Wall Street Journal first reported that Trump had rejected the Iranian proposal, citing unnamed US officials.

It said Trump was privately sceptical that Iran would meet his demands and had told his staff that he sees a renewed bombing campaign as likely after the November US midterm elections to Congress.

A US official had said earlier that discussions with Iran through mediators were "positive and constructive".

Regional and Economic Consequences

Disruption of Oil Flows

CONFLICT HAS DISRUPTED OIL FLOWS, HARMED GLOBAL ECONOMY

The Iranians also engaged their Saudi rivals regarding the Strait of Hormuz, underscoring the stakes of a seven-month-old conflict that has disrupted oil flows through a critical shipping lane and taken a toll on the global economy.

Details of the Proposed Deal

Iranian Foreign Minister Abbas Araqchi told reporters at the United Nations on Friday the proposed 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. If the US were to agree, the warring parties could start wider talks "on mutually agreed subjects."

Nuclear Programme and Diplomatic Stance

That could potentially include discussions of Iran's nuclear programme. Trump has said Tehran must never acquire a nuclear bomb, while a senior Iranian official told Reuters that Iran would show no ​flexibility over its nuclear programme even if the US accepted its peace deal.

Iran would grant no concessions over its rights, including ​enriching uranium or shipping its ​highly enriched uranium out ⁠of the country, the official said.

Iranian President Masoud Pezeshkian, in an interview with the CBS show "Face the Nation", said Tehran was ready for talks on its nuclear programme and other issues, but would not accept "bullying or coercion".

"Iran is not seeking war, but will defend itself against pressure, threats and attacks,” Pezeshkian said, adding that it had already agreed that "we're not supposed to develop nuclear weapons".

Ongoing Conflict and Regional Escalation

Previous attempts at diplomacy have failed to end the war, which began on February 28 with US and Israeli attacks.

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.

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. 

Reporting and Editorial Credits

(Reporting by Menna AlaaElDin in Cairo, Parisa Hafezi at the United Nations and Steve Holland in Washington; Writing by Daniel Trotta, Stephen Coates and Timothy Heritage; Editing by William Mallard and Gareth Jones)

Key Takeaways

  • On September 24 at the UN, Iran presented a proposal via Qatari mediators to reopen the Strait of Hormuz within a week in exchange for a ceasefire and broader talks; U.S. officials described the discussions as "positive and constructive". (washingtonpost.com)
  • President Trump publicly rejected the proposal, asserting U.S. control over the strait and indicating Iran’s economic desperation; multiple media reports note he anticipates resuming military action after the November midterms. (irishtimes.com)
  • The dispute highlights strategic stakes of the Strait of Hormuz, through which up to a quarter of global oil flows—a critical leverage point in the ongoing Iran–U.S. conflict. (investing.com)

References

Frequently Asked Questions

What proposal did Iran make regarding the Strait of Hormuz?
Iran proposed reopening the strategic Strait of Hormuz and ending fighting in the Middle East within seven days through a deal raised at the UN General Assembly.
Why did President Trump reject Iran's proposal?
President Trump rejected the proposal, stating Iran wanted the deal because its economy was suffering due to the US-led blockade and loss of revenue from the closed waterway.
How has the conflict over the Strait of Hormuz affected oil markets?
The ongoing conflict has disrupted oil flows through this critical shipping lane, negatively impacting the global economy.
Are diplomatic negotiations between Iran and the US continuing?
Talks have taken place via mediators and are described as 'positive and constructive', but major issues such as Iran's nuclear program remain unresolved.
What stance does Iran have on its nuclear program during these talks?
Iran's officials state they will not concede on their right to enrich uranium, despite being open to wider talks if the US agrees to reopen Hormuz.

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