Trump Rejects Iran's Hormuz Ceasefire Offer, WSJ Reports

According to a Saturday report from the Wall Street Journal, Donald Trump turned down a conditional offer from Iran to lift restrictions on the Strait of Hormuz and restart nuclear negotiations, even as Saudi-led coalition forces reported shooting down drones and a ballistic missile launched by Iran-backed Houthi rebels toward Riyadh and other Saudi sites.¹⁴²

Iran's Offer

Iranian Foreign Minister Abbas Araghchi proposed reopening the strategic waterway and resuming nuclear talks with the United States within seven days if Washington accepted certain conditions, according to the Wall Street Journal's account cited by CNBC. "If certain conditions are met, the Strait of Hormuz will be open at the end of seven days, and talks will be restarted," Araghchi said. Tehran's conditions reportedly included halting U.S. acts of aggression, ending the naval blockade and economic warfare, and releasing Iranian assets.¹

According to the Japan Times, Iran said it raised this initiative during the U.N. General Assembly in New York, transmitting it to American officials via Qatari mediators in an effort to end the broader Middle East conflict and reopen the waterway within seven days. Iran was reported to have engaged its Saudi rivals over the strait as it awaited an official U.S. response.³

Trump's Response

Trump confirmed, according to CNBC, that he had turned down Iran's latest offer. "They made a proposal but I rejected it," he said. He also told reporters, according to spokesman.com, that Iran was seeking an immediate deal because it was "losing so badly," adding that the U.S. naval blockade in the Strait of Hormuz was increasing economic pressure on Tehran.¹²

Trump reportedly told aides he expects the war to end shortly after November's midterm elections and expects oil prices to fall afterward, according to the Wall Street Journal report cited by CNBC. He was described as skeptical that Iran would meet his demands and as viewing a renewed U.S. bombing campaign against Iran as likely once the midterms have passed. Trump declined to answer directly when asked whether he would resume bombing after the elections, according to spokesman.com.¹²

Washington and Tehran were reported to still be negotiating through mediators, with U.S. demands aimed at preventing Iran from developing a nuclear weapon. CNBC reported that direct military clashes between U.S. and Iranian forces have significantly declined over the past several weeks. The conflict began on Feb. 28 with U.S. and Israeli airstrikes on Iran, according to the Wall Street Journal report cited by CNBC, and was seven months old, according to the Japan Times.¹³

Attacks on Saudi Arabia

Coalition spokesman Turki Al-Maliki said Saudi-led forces shot down two Houthi-launched drones headed for Riyadh along with two ballistic missiles targeting the Khamis Mushait area. The Houthis claimed responsibility for striking "sensitive" locations in Riyadh, a claim that followed reports of fire and smoke near the city's principal airport. Per spokesman.com, Riyadh was targeted by Houthi forces over the weekend, following an earlier incident a week prior in which air defense systems shot down incoming missiles and prompted air raid warnings for city residents.¹²

Saudi Arabia said its air defenses had earlier this month destroyed a Houthi drone headed for Mecca, a claim the group denied. Saudi civil defense also issued alerts of potential danger in Abha and Jazan, according to spokesman.com. CNBC noted that Houthi rebels backed by Iran, operating from Yemen, have intensified their assaults on Saudi Arabia over recent weeks.¹²

Oil Markets and Iran's Position

The war has severely restricted energy shipments from the Middle East and pushed oil prices higher, raising concerns about accelerating global inflation, according to CNBC. Nevertheless, oil prices declined steeply over the week while Iranian and American representatives conducted talks on the margins of the United Nations gathering. West Texas Intermediate closed down 2.3% at $92.41 per barrel, and Brent crude ended 2.1% lower at $104.32. U.S. crude ended the week down 7.9% while Brent held steady; year-to-date, WTI has gained close to 61% and Brent has climbed over 71%.¹

U.S. Treasury Secretary Scott Bessent said the American-led effort to economically pressure Iran was "bearing fruit," saying, "We will continue working together as there is more to be done to prevent Tehran from carrying out its terrorist agenda," according to spokesman.com. Speaking at the United Nations General Assembly, Iranian President Masoud Pezeshkian stated that Iran would block free passage through Hormuz as long as sanctions and the U.S. blockade persisted, and that the country would not relinquish its right to pursue nuclear technology for civilian economic purposes. Iran's foreign ministry, through spokesman Esmaeil Baghaei, referred to continuing U.S. "acts of aggression." Sky News reported that Iran insisted only diplomacy can resolve its conflict with the United States and Israel.²⁴¹