Iran has submitted a new diplomatic proposal to the United States offering to reopen the critical Strait of Hormuz within seven days if Washington lifts its economic blockade, according to senior Iranian and diplomatic officials. The initiative, delivered through mediators in New York, aims to resolve the months-long conflict before the November 3 midterm elections and directly challenges claims that Tehran is intentionally delaying negotiations.
Diplomatic Push in New York
Speaking to reporters on the sidelines of the United Nations General Assembly on Thursday, Iranian President Masoud Pezeshkian rejected assertions made earlier by U.S. President Donald Trump that Tehran is stalling talks to gauge Republican performance at the polls. Trump stated during his UN address on Tuesday that Iran was waiting until after the vote to reach an agreement, while also threatening to “annihilate” the Islamic Republic if diplomacy fails.
“We don’t want it to get to the midterm elections,” Pezeshkian said, adding that Tehran wishes for Washington to return to the memorandum of understanding (MOU) agreed upon by both sides in June. In a separate interview with Fox News, the Iranian president maintained that his country never sought war, stating, “The problem is that America, instead of conducting dialogue, descended into the arena by bombing us first, by blocking every pathway.”
Iranian Foreign Minister Abbas Araghchi outlined the mechanics of the newly submitted proposal during discussions with mediators this week. Under the plan, shipping through the vital oil route would be restored in about a week, paired with the rapid resumption of talks regarding Iran's nuclear program. In exchange, Tehran is asking Washington to lift its economic blockade, ease restrictions on Iranian oil exports, release frozen Iranian assets, and secure an end to hostilities on other fronts, including Israeli combat operations in Lebanon.
Diplomatic sources in Iranian, regional, and Western circles confirmed to Reuters that negotiators from both nations are discussing a phased arrangement wherein restrictions on the Strait of Hormuz and the U.S. blockade would be tackled first. Araghchi noted that the framework largely adheres to the terms established in the June MOU rather than introducing fresh demands, and Tehran is currently awaiting a formal response from Washington.
Energy Markets and Economic Fallout
The blockade and subsequent friction in the Strait of Hormuz—one of the world’s most critical energy transit corridors—have severely constrained Iran’s oil exports while rattling global energy markets. Instability in the waterway has helped drive crude prices above $100 a barrel and pushed U.S. diesel prices to historic highs. Data from AAA shows gasoline sitting more than a dollar per gallon higher than a year prior as a direct result of elevated crude prices and persistent maritime volatility.
Domestically, the conflict has weighed heavily on politics in Washington. A Reuters/Ipsos poll released Monday showed President Trump’s overall approval rating at 32%, with just 17% backing his handling of the cost of living and 34% supporting the U.S. military campaign against Iran.
Despite the mounting pressure, Trump defended the U.S. military campaign during his UN address, pointing to the destruction of Iran’s nuclear program and navy through past operations. He reiterated his administration’s position that Iran would never be permitted to acquire a nuclear weapon, while predicting that a broader deal would materialize after the midterm elections.
Moscow has aligned itself with the diplomatic push, with Russian Foreign Minister Sergey Lavrov meeting Araghchi in New York to assert that there is “no alternative” to a diplomatic settlement to resolve the crisis triggered by what Moscow termed the illegal actions of the U.S. and Israel.
Pezeshkian, marking a historic moment as the first foreign head of state to address the UN General Assembly while actively at war with the United States, emphasized Tehran’s continued openness to dialogue. However, he maintained that his government would reject negotiations carried out under threats of military force.
U.S. Central Command declined to comment on the proposal, citing operational security, while the White House did not immediately respond to requests for comment as diplomatic channels remain active in New York.
