Iran offers Strait deal; Trump dissatisfied but prefers non-military path
Finance

Iran offers Strait deal; Trump dissatisfied but prefers non-military path

Published by Global Banking & Finance Review

Posted on May 2, 2026

4 min read

· Last updated: May 2, 2026

Add as preferred source on Google

Iran Proposes Opening Strait of Hormuz, Trump Rejects but Seeks Non-Military Path

US-Iran Tensions and Diplomatic Proposals in the Strait of Hormuz Crisis

By Parisa Hafezi and Jacob Bogage

Background of the Iranian Proposal

DUBAI/WEST PALM BEACH, May 2 (Reuters) - An Iranian proposal so far rejected by U.S. President Donald Trump would open shipping in the Strait of Hormuz and end the U.S. blockade of Iran while leaving talks on Iran's nuclear program for later, a senior Iranian official said on Saturday.

Trump, who has said repeatedly that Iran can never have a nuclear weapon, said on Friday he was not satisfied with the latest Iranian proposal for talks, while Iran's foreign minister said Tehran was ready for diplomacy if the United States changes its approach.

Trump's Response and Domestic Pressures

Non-Military Options and Political Considerations

Trump also said on Friday that "on a human basis," he did not prefer the military course of action against Iran and told leaders in the U.S. Congress that he did not need their permission to extend the war beyond a deadline set by law for that day because the ceasefire had "terminated" hostilities.

"Do we want to go and just blast the hell out of them and finish them forever? Or do we want to try and make a deal?" he told reporters at the White House when asked about his options. 

Later on Friday, during a speech in Florida, Trump said the United States would not end its confrontation with Iran early "and then have the problem arise in three more years."

Economic and Political Impacts

While saying repeatedly he is in no hurry, Trump is under domestic pressure to break Iran's hold on the strait, which has choked off 20% of the world's oil and gas supplies and pushed up U.S. gasoline prices. Trump's Republican Party faces the risk of a voter backlash over higher prices when the country votes in midterm congressional elections in November.

Current Situation and Ongoing Conflict

Trump's Activities Amid Crisis

TRUMP SPENDS DAY ON GOLF COURSES

Trump spent Saturday in Florida - at his Mar-a-Lago resort and the Trump National Golf Club in nearby Jupiter. In the evening he was due to visit another of his golf resorts, Trump National Doral outside Miami, which is hosting the PGA Cadillac Championship.

Military and Economic Consequences

The United States and Israel suspended their bombing campaign against Iran four weeks ago, but appear no closer to a deal to end a war that has caused the biggest disruption ever to global energy supplies, roiled global markets and raised worries about the possibility of a wider global economic downturn.  

Iran has been blocking nearly all shipping from the Gulf apart from its own for more than two months. Last month the U.S. imposed its own blockade of ships from Iranian ports.

Stalemate Over Nuclear Program

Washington has repeatedly said it will not end the war, which has led to the deaths of thousands of people, without a deal that prevents Iran from ever obtaining a nuclear weapon, the primary aim Trump cited when he launched strikes in February in the midst of nuclear talks. Iran says its nuclear program is peaceful.

Details of the Iranian Proposal

Speaking on condition of anonymity to discuss confidential diplomacy, the senior Iranian official said Tehran believed its latest proposal to shelve nuclear talks for a later stage was a significant shift aimed at facilitating an agreement.

Under the proposal, the war would end with a guarantee that Israel and the United States would not attack again. Iran would open the strait, and the United States would lift its blockade.

Future talks would then be held on curbs to Iran's nuclear program in return for the lifting of sanctions, with Iran demanding Washington recognize its right to enrich uranium for peaceful purposes, even if it agrees to suspend it.

"Under this framework, negotiations over the more complicated nuclear issue have been moved to the final stage to create a more conducive atmosphere," the official said.

Reuters and other news organizations already reported over the past week that Tehran was proposing to reopen the strait before nuclear issues were resolved. The official confirmed that this new timeline had now been spelled out in a formal proposal conveyed to the United States through mediators.

(Reporting by David Brunnstrom, editing by Ross Colvin and Franklin Paul)

Key Takeaways

  • Iran offered to end the U.S. blockade and reopen the strait immediately, delaying nuclear negotiations—but Trump rejected it. (investing.com)
  • Facing oil‑price pressure and looming U.S. midterms, Trump signaled he preferred a diplomatic path over military action, calling for a deal despite his dissatisfaction. (investing.com)
  • To avoid the legal requirement for congressional approval under the 1973 War Powers Act, Trump declared the Iran hostilities “terminated” following the ceasefire, even as his military blockade remained in place. (axios.com)

References

Frequently Asked Questions

What did Iran propose regarding the Strait of Hormuz?
Iran offered to reopen shipping in the Strait of Hormuz and end the U.S. blockade, postponing nuclear talks for a later stage.
Why is control of the Strait of Hormuz important?
The Strait of Hormuz is vital as it handles about 20% of the world's oil and gas supplies, making disruptions impact global energy markets.
How did President Trump respond to Iran's proposal?
Trump expressed dissatisfaction with the deal but said he prefers diplomacy over military action to resolve tensions.
What are the potential economic impacts of the ongoing tensions?
The conflict has disrupted global energy supplies, increased U.S. gasoline prices, and caused concern about a possible wider economic downturn.
What are the key demands of the United States in the negotiations?
The U.S. demands Iran never obtain a nuclear weapon, and seeks guarantees before it will end hostilities or lift the blockade.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category