Iranian Foreign Minister Abbas Araghchi stated that Iran is prepared to resume fighting with the United States but has not abandoned diplomatic efforts, following President Donald Trump’s rejection of a proposal to reopen the Strait of Hormuz.
Why it matters: The Strait of Hormuz is a strategic waterway through which about a fifth of the world's oil supply flows. Its closure has severe implications for global energy markets and regional stability.
Araghchi emphasized that Iran's readiness for war is coupled with a willingness to negotiate, stating, "We stand ready for diplomacy. It is up to President Trump to choose."
The U.S. has maintained control over the Strait, with nearly 40 million barrels of oil transiting in the last 48 hours, underscoring the strategic importance of the region.
Trump’s rejection of Iran’s proposal reflects a broader strategy to apply economic pressure, believing that time is on the U.S. side.
Driving the news: On September 26, Trump publicly rejected Iran’s conditional offer to reopen the Strait of Hormuz, arguing that Iran wants a deal because it is “losing so badly.”
Trump stated, "I reject their proposal," asserting that the U.S. already has "total control" of the strait.
Iran had proposed reopening the strait within seven days if the U.S. lifted its naval blockade and released $12 billion in frozen assets, among other conditions.
Araghchi noted that the rejection had not been formally communicated to Iran via mediators, indicating a lack of clarity in negotiations.
State of play: The conflict between the U.S. and Iran has escalated since February 2026, when hostilities began, leading to a blockade that has severely impacted oil shipments.
Iran's Islamic Revolutionary Guard Corps (IRGC) recently claimed to have seized a U.S. autonomous submarine, heightening military tensions.
Both sides have engaged in indirect talks mediated by Qatar, but no breakthrough has been achieved, with Trump officials asserting that Iran is miscalculating its position.
Economic sanctions imposed by the U.S. have significantly affected Iran, with rising gasoline prices in the U.S. reaching an average of $4.49 per gallon.
The big picture: The U.S. administration believes that economic pressure will compel Iran to make concessions, as evidenced by Trump's comments about the upcoming midterm elections.
Experts suggest that Trump sees the current pressure as advantageous, believing it will lead to a stronger bargaining position for the U.S.
Trump has indicated he may wait until after the midterms to negotiate, stating, "They’re waiting to see how I do in the midterm election."
Polling shows that 63% of Americans oppose the U.S.-Israel war on Iran, complicating the political dynamics for Trump.
What they're saying: Araghchi stated that Iran's conditions for reopening the Strait are clear and non-negotiable, emphasizing that they will not back down from these demands.
He reiterated, "Our conditions are clear; any progress toward the opening of the Strait of Hormuz is contingent upon the fulfillment of these conditions."
U.S. Ambassador to the UN Mike Waltz described Iran's proposal as “unacceptable,” citing concerns over releasing billions in frozen funds.
Iranian leaders have expressed skepticism about U.S. intentions, with some officials stating they no longer trust negotiations after past agreements fell through.
By the numbers: The economic impact of the conflict is evident, with oil prices fluctuating dramatically due to instability in the region.
Brent crude oil prices have increased more than 71% year to date, underscoring the conflict's impact on global markets.
The national average price of gasoline has surged from $3.16 a year ago to $4.49, attributed to volatility in the Strait of Hormuz.
Approximately 20% of the world’s oil supply passes through the Strait, making its security a global concern.
What's next: As tensions remain high, both sides appear entrenched in their positions, with Iran awaiting a definitive response from U.S. mediators.
Iran's leadership continues to assert that they will only negotiate under favorable conditions, including the release of frozen assets and an end to the naval blockade.
Trump's administration is likely to maintain its current strategy of economic pressure, believing it will yield a more favorable outcome in future negotiations.
The situation remains fluid, with both parties evaluating their strategies as the midterm elections approach.