Middle East peace efforts hit a roadblock Tuesday amid reports that the U.S. was not in favor of Tehran’s latest offer to reopen Hormuz, while Iran insisted Washington could no longer dictate terms.
Iran has blockaded the key waterway – a vital conduit for oil and gas shipments – since the start of the U.S.-Israeli offensive two months ago, sending shockwaves through the global economy.
CNN reported that U.S. President Donald Trump was unlikely to accept Iran's proposal to restore traffic in the strait, as Qatar warned of the possibility of a "frozen conflict" if a definitive resolution is not found.
"We do not want to see a return to hostilities in the region anytime soon. We do not want to see a frozen conflict that ends up being thawed every time there is a political reason," Qatari Foreign Ministry spokesperson Majed al-Ansari said at a press conference.
While a cease-fire has halted the fighting, diplomacy aimed at permanently ending the war has proven inconclusive.
"We are very keen to see an end to this war that is sustainable," Ansari added.
Trump met with top security advisors on Monday to discuss the Iranian proposal after Tehran passed "written messages" to Washington via Pakistan spelling out its red lines, including on nuclear issues and Hormuz, Iran's Fars news agency reported.
The proposal was "being discussed," spokeswoman Karoline Leavitt told a White House briefing.
The plan would reportedly see Tehran ease its chokehold on the strait and Washington lift its retaliatory blockade on Iranian ports while broader negotiations continue, including over the thorny question of Iran's nuclear program.
But CNN, citing two sources familiar with the matter, said Trump had signaled at Monday's meeting that he was reluctant to take Hormuz off the table without resolving the nuclear question, though it was unclear what his next steps would be.
Iranian Defense Ministry spokesperson Reza Talaei-Nik said Tuesday that Washington "must abandon its illegal and irrational demands."
"The United States is no longer in a position to dictate its policy to independent nations," he said, according to state TV.
Asked about Iran's proposal, U.S. Secretary of State Marco Rubio told Fox News that "it's better than what we thought they were going to submit," but questioned whether it was genuine.
"They're very good negotiators," he said, "and we have to ensure that any deal that is made, any agreement that is made, is one that definitively prevents them from sprinting towards a nuclear weapon at any point."
Mediator Pakistan previously hosted an initial, unsuccessful round of U.S.-Iran peace talks, but hopes for a second over the weekend ultimately came to nothing.
Trump has said that if Iran wants talks, "they can call us."
Tehran would need guarantees that Washington and Israel would not attack again if it was to offer security assurances for the Gulf, Iran's envoy to the U.N. said.
On a visit to Russia, where he met President Vladimir Putin, Iranian Foreign Minister Abbas Araghchi said the war had shown "Iran's true power" and stability, but back home in Tehran, the mood was more sober.
"Everything in the country is up in the air right now. I have not worked for a long time," small business owner Farshad told Paris-based Agence France-Presse (AFP) journalists. "The country is in complete economic collapse."
Tehran resident Shervin, a photographer, said he too was feeling the pinch.
"It is the first time that I have reached a point where I was late on my rent," he said.
Iran's blockade of Hormuz has cut off flows of oil, gas and fertilizer and sent prices soaring.
Trump faces domestic pressure to find an off-ramp as prices rise, with midterm elections due in November and polls showing the war is unpopular among Americans.
Violence has continued on the war's Lebanese front, despite a recently extended cease-fire between Israel and Iran-backed Hezbollah, which drew Lebanon into the Middle East war by firing rockets at Israel.
Israel responded with strikes and a ground invasion.
Israel's military Tuesday warned residents of more than a dozen villages and towns in southern Lebanon to immediately evacuate, saying Hezbollah's "violation of the cease-fire" was compelling it to act.
Israel maintains that under the terms of the truce, it can act against imminent threats.
Hezbollah's leader Naim Qassem vowed Monday the armed group would "not back down."
Israeli army chief of staff Eyal Zamir said 2026 was "likely to be another year of fighting" for Israel on all fronts.
