President Donald Trump rejected Iran’s seven-day proposal to reopen the Strait of Hormuz on Saturday, telling reporters that Tehran is losing ground economically and that Washington can secure a better agreement by waiting out the ongoing naval blockade and economic pressure campaign.
Washington Rejects Tehran’s Seven-Day Proposal
United States President Donald Trump firmly shut down a diplomatic proposal presented by Tehran aimed at ending the ongoing conflict and reopening the critical maritime corridor. I reject their proposal,
Trump told reporters on Saturday while leaving the White House, asserting that the Iranian government was pushing for an agreement because it was losing so badly
according to reporting from Al Jazeera.
The rejected proposal included a seven-day framework under which Washington would lift its naval blockade of Iranian ports, waive sanctions targeting Iranian oil sales, release an estimated $12bn in frozen Iranian assets, and observe a wider regional ceasefire spanning Lebanon and Yemen. In exchange, Iran pledged to reopen the Strait of Hormuz and enter formal negotiations with Washington on a final settlement. Similar terms had appeared in a June memorandum of understanding signed by both countries before that agreement collapsed last month due to differences on the terms of the deal.
Tehran Holds Firm While Mediators Work
Iranian Foreign Minister Abbas Araghchi responded on Sunday, stating that Tehran had observed Trump’s initial public reaction to the proposal but had not yet received any formal response through diplomatic channels. Reporting via Yahoo highlights that Qatar and Pakistan have been actively mediating talks between Iranian and American officials on the sidelines of the United Nations General Assembly meeting in New York.

Despite the public rejection from Washington, Araghchi maintained that Iran would not soften its core conditions for restoring normal shipping through the strait. Iranian President Masoud Pezeshkian reinforced that stance during his address at the UN last week, insisting that free navigation cannot resume while U.S. sanctions and naval blockades remain active, while also defending Tehran’s right to develop nuclear technology for economic purposes.
Economic Squeeze Versus Political Risk for the White House
Policy analysts suggest that Trump’s refusal stems from a belief that the administration’s economic pressure campaign has not yet reached its peak effectiveness. Andreas Krieg, an associate professor at King’s College London, noted that the White House views Tehran’s overture as a sign of weakness rather than an offer requiring an immediate concession.

Treasury Secretary Scott Bessent recently announced an intensified financial pressure campaign, followed last week by new aviation sanctions that further disrupted Iranian air travel. However, this waiting game carries notable political and economic hazards.
Regional Shocks and Energy Market Fallout
The ongoing closure of the Strait of Hormuz continues to restrict oil and gas shipments from Gulf nations that rely heavily on energy exports to fund their state budgets. Even as diplomatic channels stall, broader regional tensions escalated over the weekend. Saudi-backed coalition forces reported intercepting two Houthi drones aimed at Riyadh alongside a ballistic missile targeted at Khamis Mushait in southern Saudi Arabia.
With no new talks scheduled as of Sunday, both Washington and Tehran remain entrenched in their respective positions.
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