US looking at Iran's latest proposal in truce talks

THE WHITE HOUSE has said it is examining Iran’s latest proposal to unblock the Strait of Hormuz, two months after a US and Israeli offensive sent shockwaves through the global economy.

Trump met with top security advisers on Monday to discuss an Iranian proposal after Tehran passed “written messages” to Washington via Pakistan, spelling out its red lines in negotiations, including on nuclear issues and the Strait of Hormuz, the Fars news agency reported.

The proposal was “being discussed,” spokeswoman Karoline Leavitt told a White House briefing.

Asked about the terms of Iran’s proposal, Secretary of State Marco Rubio told Fox News “it’s better than what we thought they were going to submit,” but questioned whether it was genuine.

“We have to ensure that any deal that is made, any agreement that is made, is one that definitively prevents them from sprinting towards a nuclear weapon at any point,” he said.

Iran’s top diplomat blamed Washington for the failure of peace talks during a visit to Russia, where President Vladimir Putin promised him Moscow’s support in ending the war.

“The US approaches caused the previous round of negotiations, despite progress, to fail to reach its goals because of the excessive demands,” Iranian Foreign Minister Abbas Araghchi said.

Araghchi was in Saint Petersburg after visiting Oman and Pakistan, the main mediator in the Middle East war.

Islamabad had hosted a first, unsuccessful round of US-Iran talks, and Araghchi’s visit had raised hopes for more negotiations over the weekend.

But US President Donald Trump scrapped a planned trip by his envoys Steve Witkoff and Jared Kushner.

Trump told Fox News if Iran wanted talks, “they can call us”, adding the cancellation does not signal a return to hostilities.

Tehran would first need guarantees Washington and Israel would not attack again if it was to offer security assurances in the Gulf, Iran’s envoy to the UN said.

Meanwhile in St Petersburg, Putin and Araghchi both voiced their commitment to their countries’ “strategic relationship” following their meeting.

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Araghchi said the war, which began when the United States and Israel attacked Iran on 28 February, showed “Iran’s true power” and stability.

But back home in Tehran, the mood was more sober.

“Everything in the country is up in the air right now. I have not worked for a long time,” small business owner Farshad told Paris-based AFP journalists.

“The country is in complete economic collapse.”

Feeling the pinch 

Though the US-Iranian ceasefire holds, the war’s economic shockwaves continue to reverberate.

Tehran resident Shervin, a photographer, said he was feeling the pinch.

“It is the first time that I have reached a point where I was late on my rent. I still don’t have any projects,” said Shervin, 42.

Iran has blockaded Hormuz, cutting off flows of oil, gas and fertiliser and sending prices soaring.

In response, the United States has imposed a blockade of Iranian ports.

Trump faces domestic pressure to find an off-ramp as fuel prices rise, with midterm elections due in November and polls showing the war is unpopular among Americans.

Iran’s Revolutionary Guards say they have no intention of easing their market-rattling chokehold of the strategic waterway.

Ebrahim Azizi, head of the national security commission in Iran’s parliament, said a proposed law for managing the strait would make the Islamic republic’s armed forces the overseeing authority, with levies to be paid in Iranian rial.

The head of the UN’s maritime agency, Arsenio Dominguez, said there was “no legal basis” for imposing transit fees.

Rubio also rejected the idea.

“They cannot normalise – nor can we tolerate them trying to normalise – a system in which the Iranians decide who gets to use an international waterway, and how much you have to pay them to use it,” he told Fox News Channel’s “America’s Newsroom.”

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