Iran has proposed reopening the strategically vital Strait of Hormuz in exchange for the United States lifting its blockade and bringing an end to the ongoing conflict, according to regional officials familiar with the negotiations.
The proposal, reportedly conveyed to Washington through Pakistani intermediaries, comes amid a fragile ceasefire between Iran and the U.S., though major disagreements—particularly over Iran’s nuclear program—remain unresolved.
U.S. President Donald Trump is seen as unlikely to accept the offer in its current form, as it delays negotiations over Iran’s nuclear ambitions—one of the central issues behind the conflict.
The standoff over the strait has had global economic repercussions. The narrow waterway, through which roughly one-fifth of the world’s traded oil and gas typically passes, has been partially restricted by Iran, while the U.S. blockade has limited Tehran’s ability to export oil.
As a result, global oil markets have been disrupted, with Brent crude prices rising sharply to around $108 per barrel—nearly 50 per cent higher than levels seen before the war began. The disruption has also driven up the cost of food, fertilizer, and other essential goods worldwide.
Iranian Foreign Minister Abbas Araghchi is currently in Russia for talks with President Vladimir Putin, as Tehran seeks diplomatic backing amid stalled negotiations with Washington.
Meanwhile, Pakistan and regional players including Oman have been working to revive dialogue between the two sides, though recent efforts to hold in-person talks have faltered.
Despite the ceasefire extension, a long-term resolution remains uncertain. Thousands have been killed across the region since the war began, and tensions continue to ripple through global energy markets and geopolitical alliances.
