Strait of Hormuz offer discussed by Trump with national security team

Iran reportedly offered to reopen the Strait of Hormuz in exchange for the U.S. lifting its naval blockade and an end to hostilities, a proposal passed to Washington via Pakistani intermediaries, and the White House confirmed President Donald Trump discussed the plan with his national security team on Monday. Press secretary Karoline Leavitt told reporters the proposal was “being discussed” but gave no further detail on its reception.

According to reporting, the Iranian draft would postpone negotiations over Tehran’s nuclear program and focus first on reopening the strategic waterway that carries a significant share of the world’s traded oil and gas. Iranian Foreign Minister Abbas Araghchi’s regional diplomacy, including visits to Pakistan and Russia, figures in the background of the proposal. U.S. officials have reiterated clear red lines regarding nuclear constraints while acknowledging receipt of the offer.

Markets reacted to the diplomatic development amid already elevated energy risk premia: Brent crude traded above $108 per barrel at the close on Monday, roughly 50% higher than before the conflict began, reflecting tightness in global supplies and higher insurance and freight costs for tankers. The disruption has fed into higher fuel and fertilizer prices and contributed to upside consumer price pressures in energy-importing economies.

Strategically, the proposal presents a short-term pathway to reopen shipping lanes but risks removing U.S. leverage on Iran’s nuclear capabilities if nuclear talks are delayed. Policy commentators note that accepting a deal that postpones nuclear verification could complicate any future effort to constrain enrichment or obtain Iran’s enriched uranium. The White House’s public posture—confirming discussion but stressing red lines—signals caution.

Analysts say the near-term market outlook will hinge on whether Washington alters the blockade and on any immediate security measures to secure tanker passages. If the U.S. demands continued nuclear guarantees, negotiations could stall and price volatility persist; conversely, a credible, enforceable agreement to reopen the strait would likely relieve some supply-side pressure and temper energy market risk premia. Investors will watch White House statements and regional diplomatic moves closely for signs of progress.