Trump rejects Iran’s Hormuz offer backed by Khamenei. What happens now?

US President Donald Trump has rejected Iran's proposal to reopen the Strait of Hormuz within seven days, even though Tehran revealed that the offer had been coordinated with Supreme Leader Khamenei and backed by a six-member team empowered to negotiate on Iran's behalf. The deadlock leaves nearly seven months of war at a critical diplomatic juncture, as both Washington and Tehran claim they want an agreement but neither is willing to surrender its main source of leverage first.

Trump stated that while he would like to make a deal, the terms Iran offered were unacceptable. Iran, on the other hand, sought to remove uncertainties surrounding the proposal, stating that President Masoud Pezeshkian had the authority to deliver on Tehran's promises. The main obstacle now is the terms themselves and which side must act first.

Iran wants the US naval blockade lifted, access to $12 billion in frozen Iranian assets, and sanctions relief to increase oil exports, while the US sees these conditions as central sources of pressure on Tehran. Tehran is seeking blockade relief, frozen assets, and oil sanctions relief for reopening Hormuz, while Washington wants Iran to ease pressure before surrendering its leverage.

Trump believes Iran is under pressure, having said Tehran wanted an agreement because it was "losing so badly."