Iran Proposes Ending U.S. Blockade to Reopen Strait of Hormuz, Extend Ceasefire

Iran proposed a deal to reopen the Strait of Hormuz and move toward ending its war with the United States if Washington lifts its naval blockade, while deferring any agreement on Tehran’s nuclear program to a later phase, regional officials and U.S. sources said on Monday apnews +1. The offer, relayed via Pakistani mediators, came as oil prices hovered above $106 a barrel and the conflict’s death toll climbed into the thousands across Iran, Lebanon and Israel apnews +1.

The proposal, delivered in recent days and disclosed publicly on April 27, would extend the current ceasefire, restore commercial shipping through the world’s most important energy chokepoint, and lay the groundwork for a permanent end to hostilities, according to accounts given to multiple outlets axios +1. In return, Iran is seeking an end to the U.S. blockade that has strangled its exports since joint U.S.-Israeli strikes on February 28 widened into a regional war apnews +1.

A Phased Deal That Sidesteps the Nuclear Stalemate

Tehran’s plan deliberately decoupled navigation and war-ending measures from its nuclear program, a file that has divided Iran’s leadership and stalled diplomacy with Washington axios. Officials said nuclear talks would be postponed to a second stage once shipping lanes are secured and the blockade lifted, a sequencing that could ease immediate economic and humanitarian pressure but risk eroding leverage over Iran’s fast-advancing enrichment program, now estimated at around 440 kilograms of uranium at 60% purity axios +1.

The offer followed shuttle diplomacy by Iranian Foreign Minister Abbas Araghchi through Pakistan, Oman and Russia, where he said it was a “good opportunity” to brief Moscow on the war’s latest developments apnews. U.S. President Donald Trump abruptly canceled a planned trip by envoys Steve Witkoff and Jared Kushner to Islamabad, later saying Tehran sent a “much better” paper within minutes of the cancellation, a remark that underscored the fluid, transactional nature of the backchannel axios. A White House Situation Room meeting was expected to weigh the proposal amid warnings from hawks that lifting the blockade before securing nuclear concessions would “throw away” U.S. leverage axios +1.

Gulf Anxiety and Market Jitters Over Hormuz Calculus

The Strait of Hormuz normally carries about one-fifth of the world’s traded oil and gas; its effective closure since late February has jolted global supply chains, drained inventories and pushed Brent crude nearly 17% higher over the past week to about $106–$108 a barrel, with U.S. benchmark WTI near $95 apnews +2. Even as reports of the proposal offered a potential path to reopening, prices remained elevated, reflecting skepticism over a swift deal and fears that any phased arrangement could unravel foxnews. Goldman Sachs raised its year-end Brent forecast to $90 from $80, citing a persistent geopolitical risk premium and record rates of inventory drawdowns foxnews.

Gulf Arab states, heavily reliant on Hormuz for exports and recently targeted by Iranian missiles and drones, voiced frustration over the prolonged disruption and differing approaches to Iran timesofisrael. Oman, which hosted Araghchi and has a history of quiet mediation, emerged again as a potential partner for technical talks on safe transit and possible toll mechanisms for commercial shipping apnews. European allies sent mixed messages: Germany’s Chancellor Friedrich Merz accused Iran of “humiliating” Washington with drawn-out talks, while British officials backed efforts to reopen the strait even as they criticized the blockade apnews.

The Bigger Picture

The Iranian offer set up a stark trade-off for Washington and its partners: accept a narrow deal that could quickly normalize a vital energy artery and consolidate a ceasefire, or hold out for simultaneous nuclear concessions at the risk of prolonged conflict, higher prices and further regional instability. With thousands already killed, a fragile truce in place and global markets on edge, the next U.S. move on the Hormuz proposal is likely to shape not only the trajectory of the war but also the balance between coercive leverage and de-escalation across the Gulf apnews +1.