FILE PHOTO: A map showing the Strait of Hormuz and a 3D printed oil pipeline are seen in this illustration | Photo Credit: Reuters

Iran said the latest proposal from the US partly bridged the gap between the warring sides but comments from the Islamic Republic’s Supreme Leader about keeping Tehran’s uranium stockpile and a dispute over tolls in the Strait of Hormuz clouded the outlook for a breakthrough. 

Tehran is in the process of responding to a text submitted by the US, which “has narrowed the gaps to some extent,” the semi-official Iranian Students’ News Agency reported on Thursday, without saying where it got the information. “Further narrowing requires an end to the temptation for war on Washington’s part.”

While that signaled progress, a Reuters report that Supreme Leader Mojtaba Khamenei issued a directive that the country’s near-weapons-grade uranium should not be sent abroad initially sent oil prices higher. Then President Donald Trump said he opposed efforts by Iran and Oman to establish some form of permanent toll system through Hormuz. 

“We want it open, we want it free, we don’t want tolls,” Trump told reporters Thursday at the White House. “It’s an international waterway. They are not charging tolls right now.”

Secretary of State Marco Rubio said that a toll system would make a deal with the US “unfeasible.” 

The conflicting statements on key issues left it unclear if the two sides were any closer to a deal after renewed threats of escalation in recent days. 

Oil prices swung in a wide range on Thursday as traders kept a close watch on whether peace talks would progress, resulting in an imminent return of oil flows via Hormuz. Brent crude prices were down more than 1.5% to trade below $104 a barrel after rising more than 3% earlier in the session.

Global stockpiles of crude oil and products are being drawn down at a record pace this month, Goldman Sachs said, as the world’s supply buffer rapidly shrinks.

The US has repeatedly demanded Tehran hand over its enriched uranium — fearing Iran could use it to build an atomic bomb — and commit to ending enrichment for at least a decade. Iranian leaders have balked at those terms in public, and the country’s President Masoud Pezeshkian said on Thursday “we will never back down” in talks.  

Trump warning

Trump on Wednesday had warned he may resume attacks soon if Iran didn’t agree to his terms, a threat he has made multiple times since a ceasefire took effect on April 8. “We’ll either have a deal or we’re going to do some things that are a little bit nasty,” he said. “But hopefully that won’t happen.”

The outlook had appeared more positive after that, when Iran suggested differences were narrowing with the US over a 14-point text from several weeks ago. That proposal essentially suggested a short-term deal that would see Iran reopen the Strait of Hormuz and the US lift a blockade of Iranian ports, with the warring sides then going into deeper negotiations over Tehran’s nuclear program.

Iran gave no indication of when it would formally answer the US. The Iranian foreign ministry reiterated it wants a commitment that fighting will end “on all fronts, including Lebanon.” It also called for the unfreezing of sanctioned assets.

Nearly three months into the conflict, Pezeshkian has insisted his country was not on the brink of giving in. “Forcing Iran to surrender through coercion is nothing but an illusion,” he posted Wednesday on X.

Pakistan Field Marshal Asim Munir, who acted as a mediator throughout the war, put off plans to visit Tehran on Thursday, Al Arabiya reported, after earlier reports that he would travel to the Iranian capital. Al Arabiya cited a “high-level source” without naming the person. 

Axios, citing unnamed sources, also reported that Trump and Israeli Prime Minister Benjamin Netanyahu had a tense call on Tuesday. It didn’t give details on what the US leader told Netanyahu, who has said he doesn’t trust Iran to abide by any peace deal and has signaled that strikes on the Islamic Republic must resume at some point. Israel has argued that Iran’s military should be degraded further.

The report came shortly after Trump told reporters that Netanyahu would “do whatever I want him to do.”

Israel’s energy minister, Eli Cohen, said there would be no “sacred cow” in Iran if fighting restarted. “The next stage will entail hitting economic targets, energy sites - oil, gas and power stations,” he told Kim Baram radio on Wednesday.

Another key point of contention is Lebanon, where Israel — whose attacks on Iran alongside the US started the war in late February — is fighting Tehran-backed Hezbollah militants. 

Israel has resisted the idea of pulling its troops out of the Arab country. A ceasefire on that front is fragile, with Israel and Hezbollah continuing attacks daily.

More stories like this are available on bloomberg.com

Published on May 22, 2026