(Bloomberg) — President Donald Trump said Iran has asked the US to lift a naval blockade of the Strait of Hormuz while the two sides negotiate an end to the two-month war, which has upended global energy supplies.<\/p>\n
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Tehran wants the critical waterway for oil and gas shipments open \u201cas soon as possible, as they try to figure out their leadership situation,\u201d Trump said on Truth Social on Tuesday. Iran has said it\u2019s in a \u201cState of Collapse,\u201d he added.<\/p>\n
The US leader on Monday convened his national security team to discuss an Iranian proposal to end the conflict, which began with US and Israeli airstrikes on the Islamic Republic on Feb. 28.<\/p>\n
Mediators in Pakistan expect Iran will submit a revised proposal to end the war in the next few days, CNN reported on Tuesday, citing sources close to the mediation process.<\/p>\n
The US has been blocking ships going to and from Iranian ports to try and squeeze the country of oil revenue, while Iran keeps the strait shuttered to almost all other traffic.<\/p>\n
Iran has consistently said it will not open the strait as long as the US maintains its blockade. The White House is playing up divisions among Iran\u2019s leaders, claiming that\u2019s a reason for the diplomatic stalemate between the two countries.<\/p>\n
Brent crude rose above $111 a barrel, bringing the gain this week to almost 6%, as concern grows of a protracted peace process that could keep Hormuz shut for an indefinite period.<\/p>\n
The war\u2019s ripple effects were underscored when the United Arab Emirates announced on Tuesday it was leaving OPEC, dealing a blow to the oil cartel and its leader Saudi Arabia. The UAE, which can pump more crude than is allowed under its OPEC quota, has long chafed at the group\u2019s restrictions.<\/p>\n
\u201cThe decision is taken at the right time in our view because it\u2019s not going to hugely impact the market: the market is undersupplied,\u201d UAE Energy Minister Suhail Al Mazrouei said. Abu Dhabi believes the shortages caused by the war will require agility to respond to market demands, he said.<\/p>\n
Iran has signaled it may be willing to accept an interim deal to reopen the Strait of Hormuz in exchange for Washington ending its blockade of Iranian ports, while postponing more complex negotiations over the country\u2019s nuclear program. It is insisting on keeping some control over shipping through the strait, which Washington is unlikely to accept.<\/p>\n
The president has told his advisers he\u2019s not satisfied with Iran\u2019s latest suggestions, the New York Times reported, citing multiple unnamed people briefed on the discussions. While it\u2019s unclear why, his administration has previously said any deal must include agreements to curb Iran\u2019s nuclear activities.<\/p>\n
The warring sides started a ceasefire around April 7 and hostilities may resume if they fail to agree to fresh talks, following an inconclusive first round in Pakistan in mid-April.<\/p>\n
Iran\u2019s offer to end the war is \u201cbetter than what we thought they were going to submit,\u201d Secretary of State Marco Rubio told Fox News. Yet the White House has \u201cquestions about whether the person submitting it had the authority to submit,\u201d he said, echoing previous US claims that Iran\u2019s leaders are divided over their negotiating strategy.<\/p>\n
The strategic Strait of Hormuz, through which a fifth of the world\u2019s oil and liquefied natural gas flowed before the conflict began, remains at a virtual standstill.<\/p>\n
Foreign leaders are increasingly frustrated with the diplomatic impasse and the continued closure of the waterway, which has led to fuel rationing across much of Asia and Africa and fears of a global economic slowdown. German Chancellor Friedrich Merz said the US was being \u201chumiliated\u201d by Iranian leaders and he didn\u2019t see \u201cwhat strategic exit the Americans are now choosing.\u201d<\/p>\n
The first LNG shipment since the war began appears to have traversed the waterway to exit the Persian Gulf. The Mubaraz, which loaded a cargo from the UAE around early March, is now passing the southern tip of India, according to ship-tracking data. It\u2019s unclear what led to the vessel opting to make the journey.<\/p>\n
Here\u2019s more on the US-Iran talks and Lebanon:<\/p>\n
US Senator Lindsey Graham, a Trump ally, said on X he was skeptical of Iran\u2019s proposal: \u201cClearly, if this offer is accurate, Iran is playing games. Mr. President, stick to your guns for the good of the nation and the world.\u201d<\/p>\n
Iran\u2019s Foreign Minister Abbas Araghchi, on a visit to Russia on Monday, told President Vladimir Putin that Tehran was committed to strengthening the partnership between their nations. Moscow is one of Tehran\u2019s closest partners.<\/p>\n
The ceasefire between Israel and Hezbollah in Lebanon remains shaky, with each side accusing the other of attacks that breach the terms of the agreement. The Israeli military, on Monday afternoon, said it was striking Hezbollah infrastructure sites in the Bekaa valley and across southern Lebanon.<\/p>\n
–With assistance from Carla Canivete.<\/p>\n
(Updates with report of new Iran proposal in fourth paragraph.)<\/p>\n
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