Iran says it is reviewing a fresh US proposal to end the two-month war, as President Donald Trump warned that renewed bombing would follow if Tehran refuses a deal that includes reopening the Strait of Hormuz to international shipping.
Markets reacted cautiously optimistic Thursday despite a tense incident Wednesday when US forces fired on an Iranian oil tanker that US officials said attempted to breach an American blockade of Iranian ports. Brent crude steadied near $100 a barrel as investors awaited clarity on whether the strait would reopen and allow Persian Gulf shipments to resume.
Trump wrote on social media that the war could be ending soon and that disrupted oil and gas flows could restart, but stressed that outcome hinged on Iran accepting an agreement he did not publicly detail. “If they don’t agree, the bombing starts,” he posted.
A fragile ceasefire between the US and Iran has largely held since April 8, but in-person talks hosted by Pakistan last month failed to produce a settlement. The current conflict began Feb. 28, when the US and Israel launched strikes against Iran.
Shifting messages from Washington
Administration messaging has shifted rapidly this week as officials outlined different plans aimed at reopening the Strait of Hormuz and ending the fighting. Iran has effectively closed the strait, a vital route for oil, gas, fertilizer and other shipments, while the US maintains a blockade of Iranian ports.
On Wednesday, US Central Command said a US fighter jet damaged the rudder of an Iranian oil tanker in the Gulf of Oman as it tried to run the blockade.
Trump suggested the United States could ultimately force a settlement if needed. “We’re dealing with people that want to make a deal very much and we’ll see whether or not they can make a deal that’s satisfactory to us,” he said, adding that any bombing would be more intense than earlier strikes.
Reported elements of the US proposal
Axios reported the White House believes it is close to a one-page memorandum with Iran to end the war. Reported provisions include a moratorium on Iranian uranium enrichment, lifting US sanctions, distribution of frozen Iranian funds and reopening the Strait of Hormuz. The White House did not immediately comment on the report.
Iran’s Foreign Ministry spokesman Esmaeil Baghaei told state TV that Tehran had “strongly rejected” the version of the proposal described by Axios but that Iran was still examining the latest US offer.
US suspends protected corridor plan
Trump intensified pressure after suspending “Project Freedom,” a short-lived US effort to create a guarded passage for commercial ships through the strait. Only two American-flagged merchant vessels used the US-escorted route before it was halted. US forces also said they sank six small Iranian boats that they said had threatened civilian shipping.
Hundreds of merchant ships remain trapped in the Persian Gulf, unable to reach open waters without transit through the strait. The disruption has pushed fuel prices higher, unsettled global markets and strained economies dependent on Gulf energy exports. Shipping firm Hapag-Lloyd estimated the shutdown was costing it roughly $60 million a week as fuel and insurance costs rose.
China urges calm; diplomats meet
China’s foreign minister called for a comprehensive ceasefire after meeting Iran’s Foreign Minister Abbas Araghchi in Beijing, saying China was “deeply distressed” by the fighting. With close economic and political ties to Tehran, Beijing is seen by Washington as a potential influence on Iran’s decisions about the strait.
Araghchi’s visit to China preceded a planned trip to Beijing by Trump for a high-profile summit with President Xi Jinping on May 14–15. Araghchi told Iranian state television his discussions in China covered the Strait of Hormuz, Iran’s nuclear program and sanctions on Tehran.
Trump has demanded a significant rollback of Iran’s disputed nuclear program as part of any deal to end the conflict.
