Iran Floats Seven Day Hormuz Reopening as Nuclear Talks Hang in Balance

Iran’s foreign minister, Abbas Araghchi, has proposed reopening the strategically vital Strait of Hormuz and restarting nuclear negotiations with the U.S. within seven days if the Trump administration accepts Tehran’s conditions. The offer places a clear timetable around a possible diplomatic move involving one of the world’s most important oil transit routes.

Araghchi presented the proposal on the sidelines of the United Nations General Assembly. It came shortly after Iranian President Masoud Pezeshkian responded defiantly to President Donald Trump’s “annihilation” threat and nearly seven months after the U.S. and Israel began their war against Tehran.

“If certain conditions are met, the Strait of Hormuz will be open at the end of seven days, and talks will be restarted,” Araghchi told reporters.

“The conditions we have asked the U.S. to meet are nothing new, nothing more than what was already in the Islamabad MOU, which was signed by the U.S. president,” he added.

The Islamabad Memorandum of Understanding refers to a June ceasefire agreement between Iran and the U.S. That arrangement ultimately collapsed in early July, and the Trump administration has previously said it will not return to the terms contained in the June agreement.

Oil prices moved slightly lower on Friday as the latest proposal emerged. International benchmark Brent crude futures for November delivery traded 1% lower at $105.56 per barrel, while U.S. West Texas Intermediate futures for November delivery were last down 1.8% at $92.94.

The conflict has also featured prominently during this week’s summit between the U.S. and China in Washington. Chinese President Xi Jinping is making a three day state visit to the U.S. and meeting Trump on matters including trade, artificial intelligence, Taiwan and Iran.

Trump has sought China’s help in applying pressure on Tehran to reach a settlement. That effort follows the resumption of indirect talks between the U.S. and Iran on the sidelines of the U.N. General Assembly in New York this week.

David Perdue, the U.S. ambassador to China, said Friday that Trump had made American interests regarding Iran “very clear” to Beijing in recent weeks. Perdue said the issue was also raised during Trump’s latest meeting with Xi.

“Believe me, believe me, much of my personal time and much of President Trump’s time over the last month has been that very topic,” Perdue told CNBC’s “Squawk Box” when asked about China’s relationship with Iran.

“We made it very clear to them weeks ago that, you know, any help that they would give Iran, whether it would be direct or indirect, whether it would be intelligence or parts or military equipment, was totally unacceptable,” he continued.

“Trump made that very clear again yesterday. This is an ongoing drumbeat that we have made very clear to them,” Perdue said.

Pezeshkian said Thursday that the U.S. must decide whether the nearly seven month war should end. His remarks came amid continuing missile strikes in the Middle East and a renewed effort by China to help broker a peace resolution.

“It’s America that must choose whether it wants to end this or not,” Pezeshkian said in an interview that aired on Fox News. He was responding to a question about whether the war could end by the close of the year.

Regional tensions intensified Friday morning when the Houthis launched dozens of missiles and drones at targets in Saudi Arabia, according to Saudi authorities. The authorities said six ballistic missiles were intercepted, while emergency alerts were issued in Mecca, Jeddah and Yanbu.

Saudi Arabia, Turkey and Pakistan planned an urgent meeting of their chiefs of staff to discuss support for the kingdom under the Mecca Joint Defense Agreement. Pezeshkian sought to separate Tehran from the escalation, saying “the Houthis are responsible for their own actions” and Iran is “not at war with Saudi Arabia.”

The Iranian president added that the Houthis “have their own issues.” Saudi Arabia’s Grand Mufti adopted a sharply different tone, telling troops to prepare “to lay down their lives” in fighting the Houthis until the group is removed from power.

Traffic through the Strait of Hormuz remained severely reduced as the diplomatic proposal surfaced. Vessel transits fell to nine, far below levels recorded during peacetime, according to Reuters, which cited preliminary vessel tracking data released Friday.

The strait normally carries about a fifth of global oil supply, giving any potential reopening immediate significance for energy markets. Iran’s seven day proposal now links restored shipping access and renewed nuclear talks directly to Washington’s willingness to accept conditions Tehran says were already included in the Islamabad agreement.