Iran has announced it is reviewing the latest American proposals aimed at ending the ongoing conflict, even as U.S. President Donald Trump threatened a new wave of bombing unless a deal is reached that includes reopening the strategically vital Strait of Hormuz to international shipping. The developments stirred cautious optimism in global markets on Thursday, despite a U.S. military strike on an Iranian oil tanker that attempted to breach the American blockade of Iran's ports the previous day.
Oil Prices Stabilize Amid Uncertainty
The price of Brent crude oil steadied at around $100 per barrel as investors awaited clarity on whether the Strait of Hormuz would be reopened, enabling tankers to resume deliveries from the Persian Gulf. Trump posted on social media that the two-month war could soon conclude, allowing disrupted oil and natural gas shipments to restart. However, he emphasized that this outcome depends on Iran accepting a reported agreement, the details of which he did not disclose. "If they don't agree, the bombing starts," Trump wrote.
A fragile ceasefire between the United States and Iran has largely held since April 8, but face-to-face talks hosted by Pakistan last month failed to produce a breakthrough. The conflict erupted on February 28 when the U.S. and Israel launched strikes against Iran.
Shifting Narratives and Contradictory Messaging
The Trump administration's messaging throughout the Iran war has been inconsistent and often contradictory. This week alone, the president and his aides presented a rapidly evolving narrative regarding the U.S. strategy to unblock the Strait of Hormuz and conclude the war. Iran has effectively shut the strait, a critical waterway for the transport of oil, gas, fertilizer, and other petroleum products, while the U.S. maintains a blockade on Iranian ports.
On Wednesday, a U.S. fighter jet disabled the rudder of an Iranian oil tanker in the Gulf of Oman as it attempted to breach the American blockade, according to U.S. Central Command. Trump insisted that Iranian officials are eager to end the war, stating, "We're dealing with people that want to make a deal very much, and we'll see whether or not they can make a deal that's satisfactory to us." He suggested the U.S. might force a settlement, reiterating his threat of intensified bombing.
Potential Agreement and Iranian Response
The White House believes it is close to an agreement with Iran on a one-page memorandum to end the war, as reported by Axios. Proposed provisions include a moratorium on Iranian uranium enrichment, lifting of U.S. sanctions, release of frozen Iranian funds, and reopening the strait for shipping. The White House did not immediately respond to queries about the potential deal.
Esmaeil Baghaei, a spokesman for the Iranian Foreign Ministry, told state TV that Tehran had "strongly rejected" the U.S. proposals as reported by Axios but confirmed that it was still examining the latest U.S. proposal.
Project Freedom Suspended
Trump escalated pressure on Tehran after suspending on Tuesday a short-lived U.S. effort called Project Freedom, which aimed to force open a safe passage for commercial ships through the Strait of Hormuz. Only two American-flagged merchant ships are known to have traversed the U.S.-guarded route after it opened Monday. The U.S. military reported sinking six Iranian small boats that threatened civilian vessels.
Hundreds of merchant ships remain trapped in the Persian Gulf, unable to reach open waters without transiting the Strait of Hormuz. The closure has driven fuel prices sharply higher, rattled the global economy, and placed enormous economic strain on countries, including major powers like China. Hapag-Lloyd, one of the world's largest shipping companies, stated that the strait's shutdown is costing it approximately $60 million per week, with soaring fuel and insurance costs hitting particularly hard.
China's Role and Diplomatic Efforts
China's foreign minister called for a comprehensive ceasefire on Wednesday after meeting in Beijing with Iranian Foreign Minister Abbas Araghchi. Wang Yi expressed that China was "deeply distressed" by the conflict. China's close economic and political ties with Tehran position it as a unique influencer. The Trump administration is pressing China to leverage that relationship to urge Iran to open the strait.
Araghchi's visit to China preceded a planned trip to Beijing by Trump, who is scheduled to attend a high-profile summit with Chinese President Xi Jinping on May 14-15. Trump was the last U.S. president to visit China in 2017. Araghchi told Iranian state TV that his discussions included the Strait of Hormuz, Iran's nuclear program, and sanctions imposed on Tehran.
Trump has demanded a significant rollback of Tehran's disputed nuclear program as part of any agreement.
