Iran proposes 7-day Strait of Hormuz reopening if U.S. lifts blockade and waives sanctions

Iran's Foreign Minister Abbas Araghchi has proposed a seven-day timeline to reopen the Strait of Hormuz, contingent on the United States lifting its naval blockade of Iranian ports, waiving sanctions on Iranian oil exports, and observing a ceasefire that includes Lebanon. The proposal was detailed during a private gathering at the United Nations General Assembly in New York on September 25, 2026, with Qatar serving as an intermediary between the two sides.

The plan resembles a June memorandum of understanding that collapsed after Iran resumed attacks on shipping in the strait. Unlike the earlier agreement's 60-day interim period, this proposal accelerates the timeline. According to regional sources, Iran is prepared to defer or set aside demands for transit fees on shipping through Hormuz, prioritizing instead the restoration of its administrative control over the waterway. The Strait of Hormuz carries approximately one-fifth of global oil and gas trade, making it a critical point of leverage in ongoing negotiations.

Both the U.S. and Iran face conflicting incentives and deep mutual suspicion. U.S. President Donald Trump has stated he is in no rush to reach a deal, with a White House official asserting that sanctions and blockade measures have left Iran "completely broke" and that Trump holds "all the cards." Former U.S. negotiator Dennis Ross estimated a 30 percent chance of a deal before November's midterm elections, though he noted both sides have reasons to pursue an agreement. Iranian President Masoud Pezeshkian, by contrast, stated that Tehran wants a peace deal before the midterms, suggesting Iran sees urgency in reaching a settlement. However, questions persist on the Iranian side about whether hard-liners dominating the security forces would accept compromises backed by moderates like Pezeshkian.

Analysts and observers have raised concerns about each side's intentions. Trita Parsi, executive vice president of the Quincy Institute, noted that Iran's current push for speed may reflect suspicion that Washington is using diplomacy to prevent Iranian pre-emptive strikes before the midterms. Conversely, some Western observers question whether Iran is buying time to extract more oil and ease economic pressure from sanctions. Saudi Arabia has expressed skepticism about the latest diplomatic push, according to sources familiar with the matter.

U.S. Secretary of State Marco Rubio stated that if there is "an opportunity to exchange ideas and messages," the U.S. would pursue it. Qatar has served as a key mediator throughout indirect talks between the two countries. Oil prices declined modestly following news of the proposal, with Brent crude trading at approximately $103 per barrel on September 26, down about 2.5 percent from the previous day, reflecting tentative market optimism about potential resolution. However, neither side has shown urgency or indicated a diplomatic breakthrough as the conflict approaches its seventh month.