U.S. President Donald Trump has rejected an Iranian proposal to reopen the Strait of Hormuz to commercial shipping within a week.
He told reporters at the White House that Tehran “wants to make a deal where they open the Strait immediately, because they’re losing very badly”.
On Friday, Iranian Foreign Minister Abbas Araghchi told reporters at the United Nations in New York that an agreement could be reached “if the necessary conditions are met,” adding that these conditions were included in a memorandum of understanding (MOU) signed by the two countries in June.
The vital waterway, through which around one-fifth of the world’s oil and gas supplies normally pass, has effectively been closed since the outbreak of the war in February.
“I am rejecting their deal,” Trump said on Saturday, adding that the United States already had “full control” of the strait, with “large amounts of oil” passing through it.
“They want to make a deal, and I think that’s fine. I like making a deal too. But that deal would not be acceptable,” he added.
On Friday, The Wall Street Journal quoted officials as saying that Trump was skeptical that Iran would meet his demands and had told his staff that he considered a new bombing campaign a possibility.
Iran responded to U.S. and Israeli airstrikes that began in late February by attacking Israel and U.S. bases and Arab allies in the Persian Gulf, while also blocking the Strait of Hormuz. Its closure has caused major fluctuations in energy prices.
The economic impact has also increased pressure on Trump to find a way to end the conflict, particularly as the United States heads toward congressional elections in November.
Araghchi told reporters on Friday: “If the necessary conditions are met, the strait can be reopened and normal maritime passage can be restored within seven days.”
He added that “the actions that the United States needs to take are not new. They are all already contained in the Memorandum of Understanding… The choice now belongs to the United States.”
Meanwhile, Iranian President Masoud Pezeshkian told CBS News, the BBC’s U.S. partner: “We had previously reached an agreement based on the Memorandum of Understanding that was signed in Pakistan… If the United States agrees to continue in that manner, everything will return to the way it was before.”
However, Kirsten Fontenrose, who served on the National Security Council during Trump’s first administration, told the BBC that there was little appetite for reopening discussions about the MOU, as it is viewed in the United States as a bad deal and Iran was “pushing against a very closed door.”
The Memorandum of Understanding was designed to establish a ceasefire and, at least partially, reopen the Strait of Hormuz.
The 14-point agreement stated that Iran would never possess a nuclear weapon. It also said that the United States, Iran and their allies would end military operations on “all fronts” and contained provisions including the termination of a U.S. maritime blockade and other sanctions.
However, the agreement collapsed after both sides resumed attacks. Iran has attacked vessels that it says attempted to pass through the strait without authorization.
The United States has attacked Iranian bases in the strait, as well as Iranian oil tankers off the country’s coast. It has also maintained a blockade of Iranian ports, causing major disruptions to Iran’s economy.
Trump has since claimed that the United States has been successful in getting oil through the Strait of Hormuz.
Shipping data shows a 10-day average of around 18 transits per day, with the number falling to as few as nine vessels on certain days, according to Kpler, a commodities analytics firm.
The situation has been further aggravated by attacks by Houthi rebels on Saudi oil facilities.
The Houthis of Yemen—an ally of Iran—have recently intensified attacks aimed at disrupting Saudi oil exports through the Red Sea, on the opposite side of the Arabian Peninsula from the Strait of Hormuz.
The group seized strategic areas along Yemen’s Red Sea coast this month, including the port of Mokha, which overlooks the Bab al-Mandab Strait, another key chokepoint for global shipping.
A regional map of the Middle East highlights two strategic waterways: the Strait of Hormuz, which lies between Iran and the United Arab Emirates and Oman, and the Bab al-Mandab Strait, which lies between Yemen and the Horn of Africa. Yemen is highlighted in white, while its neighbors Saudi Arabia, Oman and the United Arab Emirates are shown in gray. Israel, located to the northwest of the Gulf region, is also labeled, as is Iran. The Red Sea is labeled along the western coastline of Saudi Arabia, while the Indian Ocean is shown to the southeast. A small inset globe in the upper-right corner indicates the location of the region.
On Saturday, the Saudi-led coalition in Yemen said it had intercepted two ballistic missiles and drones launched by the Houthis toward Saudi Arabia. U.S. media reported that the Saudi leadership had requested military support from Trump.
The U.S. president told the United Nations General Assembly this week that he believed a deal with Iran would be reached after the November elections, while considering whether to “destroy the Islamic Republic” and rebuild it “quickly.”
Araghchi said on Friday that “peace cannot be built through threats of annihilation.”
