U.S. President Donald Trump has rejected Iran’s latest proposal aimed at ending the ongoing war and reopening the Strait of Hormuz, with Washington arguing that Tehran’s demands go too far and do not provide sufficient guarantees for a lasting agreement.
The rejection reflects the Trump administration’s hard-line position in negotiations with Iran. However, despite turning down Tehran’s latest offer, Trump has indicated that indirect talks could resume this week, suggesting that diplomacy has not been abandoned.
U.S. Ambassador to the United Nations Mike Waltz told NBC News that Iran had sought major concessions from Washington before returning to the negotiating table, including the lifting of the U.S. naval blockade and sanctions. He characterized Tehran’s proposal as an attempt to put unacceptable conditions on the table from the outset.
The Trump administration has also expressed concerns over whether Iran would honor any new commitments. Waltz said Washington was particularly opposed to allowing Tehran access to billions of dollars in frozen assets. The administration has also questioned Iran’s compliance with a previous memorandum of understanding reached in June.
Trump himself has argued that Iran is seeking a deal because it is under severe pressure. Speaking to reporters on Saturday, he said Iran wanted an agreement that would allow the Strait of Hormuz to reopen immediately, but that it was not the type of deal he was prepared to accept.
What Did Iran Propose?
Iranian Foreign Minister Abbas Araghchi presented Tehran’s latest proposal during diplomatic contacts on the sidelines of the United Nations General Assembly in New York.
According to Axios, Iran proposed reopening the Strait of Hormuz and resuming nuclear negotiations within a week if the United States lifted its naval blockade, eased sanctions affecting Iranian oil sales and restored a broader regional ceasefire.
The proposal was conveyed through indirect negotiations involving regional mediators, including Qatar. Iranian officials have said the conditions were linked to commitments made under the June memorandum of understanding and were intended to create a pathway back to diplomacy.
Araghchi has disputed Washington’s characterization of the proposal. Speaking to NBC News, he said Iran had not yet received an official U.S. response through the mediators, despite Trump publicly saying he had rejected the offer. He also maintained that Tehran remained prepared to pursue a diplomatic solution.
Why Did Washington Reject It?
The central disagreement appears to concern what each side expects before negotiations can move forward.
Iran wants the reopening of the Strait of Hormuz to be linked to the removal of U.S. military and economic pressure. Washington, meanwhile, wants Iran to make concessions on broader issues, including its nuclear program. Axios reported that U.S. negotiators told their Iranian counterparts that Tehran could not make demands regarding the strait because the United States does not recognize Iran as having control over it.
Waltz also argued that Iran was effectively asking for major concessions “up front.” The Trump administration has expressed particular concern about sanctions relief and access to frozen Iranian funds, as well as what it says were violations of the earlier ceasefire arrangement.
Iran rejects that account. Araghchi has accused Washington of violating the previous agreement first and argued that Tehran’s current conditions are not new demands but commitments connected to the earlier understanding.
Diplomacy Has Not Ended
Despite rejecting the proposal, Trump has not closed the door on further negotiations.
In a phone interview with Axios on Sunday, Trump said he expected U.S. negotiators to hold more talks with Iran this week. Two regional sources also told Axios that another round of indirect negotiations could begin as early as Monday, with Qatar continuing its mediation efforts.
Araghchi likewise said Iran remained ready for diplomacy, even as he warned that Tehran was prepared for renewed military confrontation. He said Iran’s calculations were based on its national interests rather than the upcoming U.S. midterm elections.
The latest developments therefore suggest that Trump’s rejection of Iran’s proposal does not necessarily mean the end of negotiations. Instead, Washington and Tehran remain far apart over the sequence and scope of concessions required to revive diplomacy.
For now, the key dispute is whether the Strait of Hormuz should be reopened as part of an initial confidence-building arrangement, as Iran proposes, or whether Tehran must first accept broader U.S. demands, particularly concerning its nuclear program and other security issues. Further indirect talks expected this week could determine whether the two sides can narrow that gap.
