US-Iran Peace Talks Remain Deadlocked as Trump Rejects Tehran Plan, Hormuz Stays at Centre

WASHINGTON/TEHRAN: Diplomatic efforts to halt the prolonged US-Iran conflict remain stalled, with Washington and Tehran still divided over the terms under which negotiations could resume, and the strategically vital Strait of Hormuz could be reopened.

The latest exchange has produced an unusual situation: US President Donald Trump has publicly dismissed Iran’s latest proposal, while Iranian officials say Tehran has now received an official American response and is studying its contents.

Iranian Foreign Minister Abbas Araghchi presented the American response to President Masoud Pezeshkian during a cabinet meeting, according to Iranian government spokeswoman Fatemeh Mohajerani, who was quoted by the state-run IRNA news agency.

Iranian officials have not indicated that the response has produced an immediate breakthrough.

The disagreement centres heavily on the Strait of Hormuz, one of the world’s most important energy corridors.

Tehran has sought an arrangement that would allow the waterway to reopen as part of a broader settlement, while Washington has pressed for wider commitments from Iran, including on the nuclear issue.

The latest Iranian initiative emerged during diplomatic contacts surrounding the United Nations General Assembly in New York.

Araghchi held indirect discussions with US representatives through intermediaries, including Qatar, as negotiators attempted to bridge the differences between the two governments.

According to reports on those discussions, Tehran offered a timetable under which the Strait of Hormuz could be reopened within days if Washington met a series of demands.

These included easing the naval blockade on Iranian ports, relaxing sanctions affecting Iranian oil exports and releasing frozen Iranian assets.

The proposal was designed to link the immediate reopening of the waterway with broader steps toward ending the conflict. Iran has argued that the conditions it put forward are connected to arrangements discussed earlier in the year.

Washington, however, has questioned Tehran’s ability to impose conditions concerning the strait and has sought a broader agreement.

Trump subsequently rejected the Iranian proposal publicly, saying he did not accept the terms put forward by Tehran.

His rejection came even as US officials continued to indicate that diplomatic channels had not completely closed.

The mixed signals have underscored the difficulty of the negotiations.

Trump has indicated at various points that he remains willing to consider diplomacy, but his administration has also maintained pressure on Tehran through military and economic measures.

Reuters reported on October 1 that Iranian officials were preparing for the possibility of renewed US attacks while remaining sceptical that negotiations would succeed.

The situation around Hormuz has added urgency to the diplomatic effort. The waterway is a major route for global energy supplies, and disruption there has affected shipping, oil markets and regional economies.

Reuters reported that September LNG traffic through the strait increased from earlier months despite continuing security concerns.

Iranian officials, meanwhile, have sought to keep the diplomatic option alive. Pezeshkian said Tehran would work to advance an agreement while insisting that any settlement should protect what his government describes as the rights and interests of the Iranian people.

Araghchi also briefed the Iranian cabinet on his New York meetings and the conditions Tehran has attached to reopening the waterway.

The foreign minister’s discussions with intermediaries indicate that diplomatic contacts have continued despite Trump’s public rejection of the earlier proposal.

There is also disagreement over what happened to the Iranian delegation after the New York meetings. Reports citing Axios said US Secretary of State Marco Rubio ordered the Iranian delegation to leave the United States.

The Iranian mission disputed that account, saying the departure had already been scheduled.

For now, neither side appears to have accepted the other’s terms. Washington wants a settlement that addresses wider strategic issues, particularly Iran’s nuclear programme, while Tehran has placed the reopening of Hormuz, sanctions relief and economic measures near the heart of its proposal.

The diplomatic impasse comes as military preparations and economic pressure continue in parallel.

The United States has expanded its military presence in the region, while Washington has also announced additional sanctions targeting parts of Iran’s economy.

The next stage will depend on how Tehran responds to the latest American message and whether mediators can narrow the differences over the sequence of concessions.

For the moment, the channel for negotiations remains open, but a comprehensive peace agreement remains out of reach.