According to a report from a Japanese news agency, Iran has proposed a plan to reopen the Strait of Hormuz within seven days, contingent on the U.S. taking initial steps to ease military pressure. The proposal has been communicated to Washington through mediators. Following the news, U.S. crude oil briefly fell below $90 per barrel.
Iran is reportedly seeking to leverage diplomatic activities during the United Nations General Assembly to restart negotiations with the U.S., having put forward this conditional plan for reopening the strategic waterway. A senior Iranian government official told the Japanese news agency on Tuesday that Tehran is prepared to reopen the Strait of Hormuz within a week if the U.S. first acts to reduce military tensions. The official stated that the plan has been relayed to Washington via intermediaries, with the goal of resuming talks and ultimately achieving a permanent end to hostilities between the two nations. This claim has not yet been independently verified.
Iran intends to use this week's UN General Assembly session in New York to hold consultations with countries that serve as communication channels between Tehran and Washington. The official ruled out any possibility of a meeting between Iranian President Masoud Pezeshkian and U.S. President Donald Trump on the sidelines of the assembly, but added that both sides still have the potential to move toward an agreement. He also emphasized that Washington must demonstrate "seriousness and commitment" if diplomatic progress is to be made.
On the news, international oil prices took a sudden dive during trading, with WTI crude briefly dropping below $90 per barrel for the first time since September 8. The U.S. dollar index also fell sharply in the short term, pushing spot gold up more than $20 within 15 minutes, briefly returning to $4,330 per ounce.
Iran links strait reopening to lifting of port blockade
According to this Iranian official, Tehran is seeking clear signals from Washington that the U.S. is ready to return to the negotiating table, take measures to end the military blockade on Iranian ports, and halt military operations related to the Strait of Hormuz. If the U.S. takes such steps, Iran is prepared to reopen the strategic waterway within seven days and resume negotiations. The Strait of Hormuz remains affected by wartime conditions, with commercial shipping volumes well below pre-war levels. Meanwhile, restrictions on Iranian ports are squeezing the country's crude exports, which represent one of its primary sources of revenue.
The Japanese news agency reported that the new proposal has been approved by Iran's supreme leader, Mojtaba Khamenei, and the country's Supreme National Security Council. The council's secretary, Mohsen Rezaei, stated on Saturday that Tehran has presented seven conditions to Washington, including ending the port blockade and unfreezing Iranian assets. However, the official who disclosed the latest plan to the Japanese news agency did not clarify whether it represents any partial softening of those conditions.
Meanwhile, a deadline set earlier by Iran's Supreme National Security Council is approaching. That official said the council decided on August 16 that if the U.S. fails to lift the port blockade within 45 days, Iran would reserve the option to attack American forces again. This suggests that Tehran is keeping the door open for military escalation even as diplomatic channels become more active.
Diplomacy heats up as Gulf states seek new security arrangements
According to Iran International, diplomatic efforts around the Iran war are accelerating in New York, with Western and Gulf states seeking to restore Hormuz shipping, curb Houthi attacks, and create conditions for renewed talks with Tehran. Qatar has said it is working to broker even a short-term agreement between the U.S. and Iran to reopen negotiations. Doha believes that restoring navigation through the Strait of Hormuz and eliminating the threat of military action are necessary prerequisites for meaningful talks.
Iranian Foreign Minister Abbas Araghchi has already arrived in New York. According to the Tasnim News Agency, affiliated with Iran's Islamic Revolutionary Guard Corps, he held a phone call with UN Secretary-General Antonio Guterres to discuss the General Assembly agenda and efforts to advance international peace and security.
Discussions among Gulf nations have also expanded from ending the current conflict to shaping future regional security arrangements. Qatar and the United Arab Emirates are calling for stronger regional dialogue, with Qatar advocating for a common security framework involving Iran and the Persian Gulf states. The Financial Times reported that Saudi Arabia has also discussed the possibility of a non-aggression pact with Iran. The publication noted that the war is prompting Gulf states to reassess their regional security policies.
The shipping crisis in the Strait of Hormuz serves as an important backdrop to these diplomatic efforts. After meeting with Trump in New York, French President Emmanuel Macron said France and the U.S. will cooperate to protect critical energy infrastructure in the Middle East and freedom of navigation in the Strait of Hormuz, while seeking a pause in attacks on energy infrastructure. Macron had previously warned that disrupted Hormuz shipping and attacks on alternative transport routes are putting severe strain on global energy markets.
Energy and shipping pressures ripple beyond the region
Washington is also exploring ways to reduce its future dependence on the Strait of Hormuz. The Wall Street Journal reported that the Trump administration has proposed contributing $5 billion to a fund for rebuilding damaged regional energy infrastructure, with 8 Middle Eastern partners asked to match the contribution, potentially bringing the fund to $10 billion. However, the newspaper noted that some regional officials question whether reconstruction can proceed safely before a peace deal is reached with Tehran, as energy facilities could still be targeted again.
The war's economic impact is already being felt beyond Iran. Iraqi Prime Minister Ali al-Zaidi said Iran has blocked Iraqi oil tankers from transiting the Strait of Hormuz, even though Baghdad still considers Tehran a regional partner. He noted that Iraq has lost approximately $60 billion in revenue since the war began. The U.S. Central Command said American forces have already re-routed 110 commercial vessels as part of the blockade operations against Iran.
Security pressures are also spreading toward the Red Sea. The UK has agreed to provide limited defensive air-to-air refueling support to Saudi Arabia, following an increase in attacks by Yemen's Houthi forces. Foreign ministers from the Group of Seven, meeting in New York, urged Iran to stop arming and supporting the Houthis, warning that continued attacks are threatening civilian shipping, international trade, and broader regional stability.
Meanwhile, Iran continues to bolster its military readiness. A deputy commander of the Islamic Revolutionary Guard Corps said Iran is strengthening its missile, drone, cruise missile, cyber warfare, electronic warfare, and air defense capabilities.
Comments