Iran Proposes Ceasefire Extension To Reopen Strait Of Hormuz

Iran has submitted a new proposal to the U.S. to reopen the Strait of Hormuz and extend the ongoing ceasefire, with nuclear negotiations to be deferred, according to Axios, which cited a U.S. official and sources familiar with the matter.

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The proposal was conveyed through mediators in Pakistan and calls for maintaining the ceasefire to allow discussions toward a permanent end to the conflict. As part of the plan, nuclear talks would begin only after the U.S. lifts its blockade of the Strait of Hormuz, Axios reported.

Proposal Delivered Through Pakistan

Pakistani mediators have passed the proposal to the White House, although there is no confirmation on whether the U.S. will engage with the offer, according to Axios. The White House did not immediately respond to requests for comment.

U.S. President Donald Trump confirmed that a revised proposal had been received after he cancelled a planned diplomatic visit to Pakistan. Speaking to reporters on April 26, Trump said Iran had submitted a “much better” proposal, but added that it was “not enough,” without providing further details.

Strait Of Hormuz Remains Blocked

The Strait of Hormuz, a critical global energy route that carries about 20% of the world’s oil supply, remains effectively blocked as both the U.S. and Iran continue to enforce opposing restrictions, according to the International Energy Agency.

Despite the maintenance of a ceasefire since early April, however, the disruptions that have occurred continue to have a considerable impact on international energy flows, helping to drive higher prices for oil recently.
Market Reaction

Following the report, the U.S. dollar weakened against major currencies in early Asian trade, while S&P 500 index futures moved higher, according to market data cited by Axios. Oil prices also pared earlier gains after the development.

Talks Remain Uncertain

Efforts to restart formal negotiations had stalled over the weekend after the U.S. cancelled diplomatic engagements and Iran stated it would not enter talks while under threat, according to Axios.

This proposal comes at an opportune moment, with efforts geared towards the expansion of the ceasefire and the reopening of the Strait of Hormuz, while other topics like nuclear talks will have to wait.