US-Iran talks continue on Hormuz despite Trump's rejection

Mediators are continuing efforts to broker a deal between Iran and the United States to end the fighting and reopen the Strait of Hormuz, even after US President Donald Trump publicly rejected Iran's latest proposal, according to three regional officials and a senior US official.

The indirect talks were expected to resume on Monday as the conflict, now in its eighth month, continues to hurt the global economy and batter Iran. Several earlier attempts to allow safe shipping through one of the world's most crucial waterways have failed.

The officials said the behind-the-scenes talks have continued despite Trump's rejection of an Iranian proposal to reopen the strait within a week if the US agreed to lift its blockade of Iranian ports, release frozen Iranian assets and waive sanctions on Iranian oil sales, among other conditions. Iranian Foreign Minister Abbas Araghchi remained in New York after last week's UN General Assembly gathering and said he was awaiting "definitive" word from mediators about Trump's rejection. Qatar has been mediating.

The senior US official said that despite Trump's often combative rhetoric, he remains open to a non-military solution if one can be reached. But the official also said there is doubt about whether Iran can be persuaded to meet Trump's conditions for a deal. All four officials spoke on condition of anonymity because they were not authorised to comment publicly on the negotiations.

Two of the officials said mediators are working with both sides on a proposal that would begin with reopening the strait and lifting the US blockade, followed by the removal of sanctions. Under the draft text being discussed, the strait would reopen under a separate arrangement Iran has been discussing with Oman, across the waterway. The arrangement would include no tolls, something Tehran has been seeking, and would temporarily manage shipping traffic on what had been seen as an international waterway before the war.

Despite Trump's public comments, the US has not officially rejected the current proposal, the officials said, suggesting his remarks may have been a negotiating tactic. One regional official said Washington is seeking Iranian concessions on its nuclear programme, including allowing inspectors into the country. Under the Memorandum of Understanding signed by both sides in June, which collapsed within days, Iran's nuclear programme was to be discussed over 60 days.

One official said there were positive signals from both sides. A second said there had been "slight progress" over the weekend. The third said mediators were still trying "to soften" the positions of both sides. The White House did not immediately respond to a request for comment.

Iran's latest proposal is similar to the June deal, but with a faster timeline. Araghchi told a closed-door meeting on the sidelines of the UN General Assembly last week that Tehran had presented the deal as one that could help Trump in the midterm elections. He later told journalists that "the seven-day timeline will start as soon as the United States accepts this plan".

Both countries have been under economic pressure, with the US hit by high oil prices as Iran attacks ships in the strait, and Iran facing a naval blockade and a growing number of US sanctions affecting its oil sales. Brent crude, the international benchmark, is above USD 108. For months, both sides have tried to outlast the other, while countries in the region have faced missile and drone attacks as Tehran says it is targeting US military assets in the area.

Showing Iran's impatience, a rare statement on Monday attributed to Supreme Leader Ayatollah Mojtaba Khamenei referred to the "painful blows" that enemy forces had received near the strait. "Before long, the Arabian Sea, too, will be rid of them," the statement said. Iran's latest proposal again called for an end to the fighting on all fronts, including in Lebanon.

But the conflict has widened in recent weeks, with Iran-backed Houthi rebels in Yemen now positioned at the Bab el-Mandeb Strait at the southern entrance to the Red Sea, adding to pressure on global energy markets. Iran says the Houthis have their own demands and that their conflict with neighbouring Saudi Arabia is separate from the US-Iran war. Even so, one of the officials said Iranian officials have indicated they are willing to help find a settlement between the Houthis and the Saudis, as mediators continue trying to secure a wider deal to reopen the Strait of Hormuz and end the fighting.

With PTI Inputs

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