United States President Donald Trump has rejected a new Iranian proposal to reopen the Strait of Hormuz, telling reporters on 26 September that the offer was “totally unacceptable.”

Iran’s Foreign Minister Abbas Araghchi announced the seven-day plan on 25 September. It demanded that the US halt hostilities on all fronts including Lebanon, release more than $12 billion in frozen Iranian assets, lift sanctions on Iranian crude and end its naval blockade, in exchange for reopening the strait within seven days. The proposal was conveyed through Qatar.

The Wall Street Journal reported that the plan also included resuming nuclear talks. Trump said Iran had “outsmarted themselves” by closing the strait and accused Tehran of playing games for decades. On Truth Social, he wrote: “IRAN CAN NOT HAVE A NUCLEAR WEAPON!!!”

The rejection rattled markets. The US 10-year Treasury yield touched 5.274 per cent, its highest since 2007, while Wall Street fell on fears of fresh energy shocks. Shippers already face higher costs on the route.