President Donald Trump says he rejected a proposal from Iran that would have led to the rapid reopening of the Strait of Hormuz. Last week, Iran reportedly sent an offer to the US that included reopening the Strait within seven days if Washington lifted its blockade, eased military pressure, and took steps toward ending regional hostilities.

“I reject their proposal. I rejected ​their deal,” the President told reporters on Saturday. “They want to make a deal to open the Hormuz Strait immediately because they’re losing so badly. We’re ​winning tremendously.”

He continued, “They want to make a deal, and I think that’s fine, I like making a deal too. What they ⁠want to do is immediately open the Hormuz Strait … because they have no money coming in, because they get their money from the Hormuz Strait.”

A senior Iranian official told Kyodo News last week that Tehran sent the US a new proposal to reopen the Strait of Hormuz within seven days if Washington takes steps to lift its blockade and ease military pressure. The proposal was relayed to the US through intermediaries as top Iranian officials, including Iranian President Masoud Pezeshkian, were preparing to travel to New York City for the General Assembly gathering. 

The reopening of the Strait of Hormuz was a key provision of the Memorandum of Understanding (MOU) signed in June. Under the MOU, Iran committed to allowing traffic through the waterway to return to prewar levels, but was given control over shipping in the Strait. 

The MOU also required Washington to lift its blockade of Iranian ports and enforce a region-wide ceasefire. However, after the agreement broke down in July, Trump declared the MOU “over” and reimposed the blockade. Iranian officials argue the MOU requires the US to stop its allies from attacking Lebanon, Gaza, and Yemen. 

Tehran says that Washington must fulfill its commitments under the agreement before negotiations to end the conflict permanently can resume.

Iranian Foreign Minister Abbas Araghchi said Saturday that mediators have not formally informed Tehran that Washington rejected the proposal. “We are waiting for the mediators to convey the definitive views to us, and we will make a decision based on them,” he said.