Iran has put forward a proposal to ease tensions in the Strait of Hormuz, offering to lift its restrictions in exchange for the United States ending its blockade and halting the ongoing conflict. This offer, according to two regional officials, suggests that discussions about Iran’s nuclear program would be deferred to a subsequent phase.

President Donald Trump appears unlikely to entertain this proposal, which was communicated to Washington through Pakistan. It leaves unaddressed the core issues that precipitated the war with the US and Israel on February 28.

Currently, a delicate ceasefire holds, but the US and Iran remain at odds over the strategic waterway. The Strait of Hormuz is crucial, as it handles a fifth of the world’s oil and gas trade under normal circumstances. The US blockade aims to stifle Iran’s oil sales, cutting off vital revenue streams, and potentially forcing Tehran to halt production due to storage constraints.

The closure of the strait has put additional pressure on President Trump, especially as oil and gasoline prices soar in the lead-up to significant midterm elections. This situation also strains his Gulf allies, who rely on the strait for exporting their own energy resources.

Globally, the economic repercussions are significant, with soaring costs for fertilizer, food, and other essential goods affecting markets around the world.

Iran’s proposal deliberately postpones discussions about its nuclear ambitions, a critical point for Trump, who has stated that preventing Iran from developing nuclear weapons was a primary motivation for the military conflict.

The two officials, who had knowledge of the proposal, spoke on condition of anonymity to discuss the closed-door negotiations between Iranian and Pakistani officials this weekend. The Axios news outlet first reported Iran’s proposal.

It came as Iran’s foreign minister visited Russia, which has long been a key backer of Tehran. It’s unclear what, if any, assistance Moscow might offer now.

Strait of Hormuz remains blocked

Iran’s ability to choke off traffic in the Strait of Hormuz, the narrow mouth of the Persian Gulf, has proved one of its biggest strategic advantages in a war that has often boiled down to which side can take more pain.

Oil prices have risen steadily since the war began and tankers full of crude became stranded in the Persian Gulf, unable to safely transit through the strait and reach global distribution points.

On Monday, the spot price of Brent crude, the international standard, was trading about $US108 per barrel, nearly 50 per cent higher than when the war began.

Iranian foreign minister holds talks as negotiations with US stall

Trump last week indefinitely extended the ceasefire the US and Iran agreed to on April 7 that has largely halted fighting. But a permanent settlement remains elusive in the war that has killed thousands of people.

Iran’s state-run IRNA news agency said Foreign Minister Abbas Araghchi landed in St Petersburg on Monday morning ahead of a meeting with Russian President Vladimir Putin.

“It is a good opportunity for us to consult with our Russian friends about the developments that have occurred in relation to the war during this period and what is happening now,” Araghchi said in a video interview posted by IRNA.

It comes as Pakistan has been seeking to revive stalled talks between Iran and the US, and negotiations had been expected in Islamabad over the weekend. Instead, Trump called off a trip by his envoys and suggested the talks could take place by phone instead.

Over the weekend, Araghchi made two stops in Pakistan and a visit to Oman, which shares the strait with Iran. He also spoke by phone with counterparts in Qatar and Saudi Arabia on Sunday.

Iran wants to persuade Oman to support a mechanism to collect tolls from vessels passing through the strait, according to a regional official who spoke on condition of anonymity because he was not authorised to discuss the matter.

Oman’s response wasn’t immediately clear.

The official, who is involved in mediation efforts, also said Iran insisted on ending the US blockade before new talks and that Pakistan-led mediators are trying to bridge significant gaps between the countries.

Trump says Iran has offered a ‘much better’ proposal

Trump told journalists on Saturday that after he called off a trip by his envoys to Pakistan, Iran sent a “much better” proposal.

He did not elaborate but stressed that one of his conditions is that Iran “will not have a nuclear weapon”. Iran insists its program is peaceful, but the US wants to remove Tehran’s stockpile of highly enriched uranium, which could be used to build a bomb, should Tehran choose to pursue one.

Since the war began, at least 3375 people have been killed in Iran and at least 2509 people in Lebanon, where fighting between Israel and the Iran-backed Hezbollah militant group resumed two days after the Iran war started. Another 23 people have been killed in Israel and more than a dozen in Gulf Arab states. Fifteen Israeli soldiers in Lebanon, 13 US service members in the region and six UN peacekeepers in southern Lebanon have been killed.

The ceasefire between Israel and Hezbollah has been extended by three weeks. Hezbollah has not participated in the Washington-brokered diplomacy.