Iran Proposes Reopening Strait of Hormuz to End US Blockade, War; Defers Nuclear Talks

Iran has proposed a staged approach to negotiations with the United States, offering to reopen the Strait of Hormuz if the U.S. lifts its blockade and ends the war, according to senior Iranian sources. The plan would defer talks on Iran's nuclear program until later stages.

U.S. President Donald Trump stated that Iran must agree not to develop nuclear weapons as a precondition for any deal. The war between the U.S., Israel, and Iran began on February 28, 2026, leading to thousands of deaths, elevated oil prices, and global economic strain.

A ceasefire has held since mid-April, but shipping through the strait remains limited. Data from Kpler and SynMax showed at least seven ships crossed the strait in the past 24 hours, far below the pre-war average of 140 daily passages.

Diplomatic Moves Planned talks in Islamabad, mediated by Pakistan, were canceled over the weekend. U.S. envoys Steve Witfkoff and Jared Kushner did not travel, and President Trump told Fox News that Iran knows the required terms. Iranian Foreign Minister Abbas Araqchi instead met with Russian President Vladimir Putin on Monday.

Pakistani officials stated that remote negotiations continue, but no in-person meetings are scheduled until sides are closer to agreement. Streets in Islamabad reopened after a week-long lockdown, and a designated hotel resumed public operations. The U.S. began blockading Iranian ships this month, redirecting 37 vessels since April 13, according to the U.S. Central Command.

Iran insists the blockade must end before talks proceed. >"They know what has to be in the agreement. It's very simple: They cannot have a nuclear weapon; otherwise, there's no reason to meet," — President Donald Trump, Sunday (CBC).

Iran links talks to a ceasefire in Lebanon, where Israel invaded in March targeting Hezbollah. Fighting intensified on Sunday, with strikes killing 14 people and wounding 37 in southern Lebanon, according to officials. Both sides accuse each other of violating a U.S.-brokered truce extended last week.

Israeli forces have evacuated hundreds of thousands from villages and bulldozed homes. Explosions and smoke were visible from northern Israel on Sunday. Brent crude prices rose on Monday, topping $100 a barrel, due to the stalemate and muted Hormuz traffic.

The closure has disrupted global oil and gas flows, pressuring Iran's infrastructure as production continues without export outlets.

The proposal envisions initial steps to end the war and provide U.S. guarantees against resumption, followed by resolving the blockade and strait control. Only then would nuclear issues be addressed, with Iran seeking acknowledgment of its uranium enrichment rights for peaceful purposes.

Sources indicate the U.S. is unlikely to accept deferring nuclear talks. Vice President JD Vance remained in Washington amid the impasse. Iran announced measures to curb natural gas consumption after war damage to facilities. The conflict has led to warnings of structural demand destruction in global LNG markets from gas exporting officials.

Oil futures climbed in Europe and the U.S. on stalled talks, with energy prices rising amid the standoff and Hezbollah's rejection of the Lebanon ceasefire.