Trump expects more talks with Iran this week despite rejecting latest deal

The US has turned down Iran's proposal to reopen the Strait of Hormuz, signaling that Tehran's most persuasive bargaining tool may be losing some of its potency, according to new developments in the seven-month-long conflict. Iran had extended an olive branch through Qatar, suggesting that the waterway be opened and hostilities cease, contingent upon the lifting of US sanctions, release of frozen assets, and waivers on oil-related restrictions.

However, President Donald Trump categorically refused the offer, emphasizing that he still desires a deal but deems Iran's proposal unacceptable. Despite the strategic significance of Hormuz for global energy markets, commercial traffic has plummeted to a fraction of pre-war levels, with only 17 vessels recorded crossing through the strait in the recent weekend, as opposed to the usual 125 daily.

Nevertheless, oil exports continue to flow, albeit at a reduced rate, thanks in part to alternative shipping methods and protected movements of tankers. US Central Command chief Admiral Brad Cooper has reported that over one billion barrels of crude and more than 2,000 commercial vessels have been successfully transiting through Hormuz in recent months, a figure that marks a marked increase compared to the previous six months.

This development indicates that Washington and regional producers have devised measures to keep substantial oil volumes moving despite the turmoil. However, the question remains as to whether the US perceives Iran's Hormuz card as less valuable given the extensive efforts to circumvent the blockade.