Iran Proposes New Plan to End Ongoing Conflict with the US Amid Strait of Hormuz Blockage

Iran has recently submitted a new proposal to the United States in an effort to resolve the ongoing conflict that has persisted for two months, particularly as the vital Strait of Hormuz remains blocked for oil trade. Amid claims from President Trump that Iran is eager to negotiate due to its struggling economy, the details of this proposal are yet to be revealed. Previous offers from Tehran to reopen the Strait were rejected, with the US insisting on including nuclear discussions in the negotiations. As tensions rise, oil prices have surged, and the Iranian economy faces significant challenges. Read on to learn more about the implications of this situation.

By Narendra Chaudhary May 1, 2026, 22:53 IST

Iran's New Proposal Amid Ongoing Tensions

Washington: A new proposal has been put forth by Iran to the United States, aiming to resolve the ongoing conflict that has persisted for two months, as the crucial Strait of Hormuz remains obstructed for oil trade, according to local media reports on Friday.

This latest initiative follows claims from US President Donald Trump, who suggested that Iran is eager to negotiate a resolution due to its struggling economy, which has been severely impacted by the US's economic sanctions against Tehran.

Details regarding Iran's new proposal have not yet been disclosed.

Previously, Tehran had suggested reopening the Strait of Hormuz and concluding the conflict but sought to delay discussions on its nuclear program.

Trump dismissed this earlier offer, insisting that the nuclear issue be reintroduced into the negotiation framework, as reported by a source familiar with the matter.

One of the proposed amendments reportedly included a stipulation that Iran must not attempt to transfer any enriched uranium from its damaged nuclear sites or resume activities at those locations while talks are ongoing.

White House spokesperson Anna Kelly stated on Fox News Digital that "President Trump has made it clear that Iran must never acquire a nuclear weapon, and discussions are ongoing to safeguard both short- and long-term national security interests of the United States."

Kelly's comments were made in response to inquiries about reports indicating that Iran has shared its latest negotiation strategy with Pakistan concerning the conflict with the US.

"We do not disclose private diplomatic discussions," she added.

Following the onset of the US-Israel conflict with Iran on February 28, the Strait of Hormuz was effectively closed by Iran. Since the ceasefire announcement on April 8, the US has restricted shipping to and from Iran via this vital waterway.

Oil prices surged to a wartime peak of USD 114.70 per barrel on Thursday before retracting to USD 107 and ultimately stabilizing at USD 110.40.

"Due to the repercussions of Economic Fury, Iran's currency has plummeted to an unprecedented low. The Iranian populace deserves a new beginning, which the corrupt and ineffective Iranian regime cannot deliver," stated Treasury Secretary Scott Bessent.

He emphasized that with the oil sector collapsing and the currency in freefall, it is time for the Iranian leadership to acknowledge that the citizens of Iran deserve far better than what their current regime can offer.

"It is challenging for those entrenched in corruption to comprehend the realities of the outside world," Bessent remarked.

He asserted that the United States maintains complete control over the Strait of Hormuz and highlighted a significant shortage of hard currency, specifically US dollars, in Iran.

Bessent claimed that rationing of food and gasoline is currently in effect in Iran, and the global community has largely turned against Tehran.

"The blockade will persist until there is a return to pre-February 27 conditions of freedom of navigation," the US Treasury Secretary concluded.