Iran proposes new deal to US that will see Strait of Hormuz reopen

Iran’s president and foreign minister visited New York for the UN gathering of world leaders and proposed a deal with the Trump administration that would end the fighting and open the Strait of Hormuz in seven days.

That’s if the US ends its military blockade of Iranian ports, releases frozen Iranian assets and waives sanctions on Iranian oil sales, among other conditions – none of them new.

What’s different after past failed attempts is the speedier timeline. Iran’s pitch to US President Donald Trump said a quick deal might help him in the midterm elections in November.

Trump early on Saturday appeared to share the first indication of his thinking, posting a map on social media of the crucial waterway calling it the “Trump Strait”.

Around the same time, Iran’s state media said President Masoud Pezeshkian was going home.

Trump used his speech to the UN gathering on Tuesday to threaten to “annihilate” the Islamic Republic. In his own speech a day later, Pezeshkian said Iran would fight “until our last breath”.

In his final seconds, however, Pezeshkian said Tehran remained open to diplomacy.

That came in a private gathering on Thursday on the sidelines of the UN meeting, where Iran’s top diplomat described Tehran’s new proposal to the US. The conditions for Washington largely echo the ones agreed to in the June deal that fell apart.

At stake are the biggest sources of frustration for both sides.

Opening the Strait of Hormuz, which Iran asserted control of after being attacked by the US and Israel, would ease global markets and relieve some pressure on the US military, which has been guiding commercial ships through the waterway at risk of Iranian attack.

Lifting the US naval blockade of Iranian ports, as well as waiving sanctions on oil sales, would allow Tehran to ship out more of its crude and help its battered economy as its currency hits record lows and inflation soars.

Iran makes another push before heading home

In a sign of Tehran’s apparent sense of urgency, Pezeshkian hosted the prime minister of Qatar, the mediator in the indirect talks, early on Friday before much of New York rolled out of bed.

“The choice now rests with the United States,” Iranian Foreign Minister Abbas Araghchi told journalists Friday evening (Saturday AEST). But the White House would say only that US officials were having positive and constructive conversations with mediators.

Tehran has spent long weeks in discussions with Oman, on the other side of the strait, on how to manage shipping traffic.

Its new rush for a deal with Washington, analysts said, reflects its eye on the midterms. Trump might decide an agreement has political benefits. But his rejection risks a return to fighting that would drive oil prices higher just as he needs happy voters.

“Washington may believe that time is on its side: Maintain pressure through November, avoid another major military escalation before the midterms, and reassess afterward. Tehran may reach precisely the opposite conclusion," Danny Citrinowicz, a senior researcher at Israel’s Institute for National Security Studies, said on X on Saturday.

Trump has said he’s in no rush for a deal as the US strains Iran’s economy with sanctions. The White House had yet to expand on his “Trump Strait” social media post overnight.

As for Iran, there was no immediate sign its top diplomat had left New York. At home, Iran's security forces have warned they still have targets left to strike.