Trump Rejects Iran’s Seven-Day Strait Deal on September 27

US President Donald Trump rejected Iran’s proposal on Saturday to reopen the Strait of Hormuz within seven days, saying the deal was unacceptable. Iran had offered to lift the blockade if the US released frozen Iranian funds, ended oil sanctions, and lifted its naval blockade on Iranian ports. Trump said Iran wanted the deal only because it was losing economically. The Strait of Hormuz closure has disrupted global oil supply since February when the US and Israel attacked Iran.

What Iran proposed and why Trump rejected it

Iran’s Foreign Minister Abbas Araghchi announced the seven-day plan at the UN General Assembly on Friday. The proposal called for the US to release frozen Iranian funds, lift oil sanctions, and end its naval blockade. Araghchi said those steps could be completed in four or five days, allowing the strait to reopen and negotiations on a final agreement to begin by day seven. Trump said the plan would not be acceptable because Iran was negotiating from desperation. He told reporters on Saturday that Iran wanted to make a deal only because it was losing so badly.

The June agreement that collapsed

The Iranian proposal mirrors a memorandum of understanding the two countries reached in mid-June. That deal temporarily ended fighting and restarted ceasefire talks. Iran received relief from the US naval blockade, while the US eased sanctions and freed up frozen Iranian assets. In return, Iran promised not to seek nuclear weapons and said it would reopen the Strait of Hormuz. The agreement collapsed after disputes over vague wording, particularly language about who would control the strait. Fighting resumed shortly after.

Economic pressure and regional escalation

US Treasury Secretary Scott Bessent said the US-led effort to strangle Iran economically was bearing fruit, praising cooperation from the United Kingdom, Turkey, Oman and the United Arab Emirates. Bessent said on Saturday that the US would continue working together to prevent Tehran from carrying out its terrorist agenda. Meanwhile, Saudi-backed coalition forces in Yemen reported that air defences intercepted two drones and a ballistic missile launched by Houthis toward Riyadh over the weekend. Air raid alerts were issued for Riyadh residents, marking the first such alerts since March and April when hostilities peaked.

Iran’s response and next steps

Iranian Foreign Minister Araghchi responded to Trump’s rejection via Telegram on Saturday, saying Iran will not back down on its conditions. He noted that Trump has a history of making contradictory statements and said Iran is waiting for definitive opinions from mediators before making a decision. Araghchi emphasized that only a negotiated solution can resolve the deadlock. The Strait of Hormuz closure has caused major disruptions to global oil supply since Iran effectively closed it after the February US and Israeli attacks.

Final Thoughts

Trump’s rejection signals continued stalemate over the Strait of Hormuz, a critical chokepoint for global energy markets. With Iran insisting on diplomacy and the US maintaining economic pressure, the path to reopening the waterway remains blocked. Australian investors tracking energy prices and Middle East geopolitical risk should monitor further developments.

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