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.
Tehran wants the critical waterway for oil and gas shipments open “as soon as possible, as they try to figure out their leadership situation,” Trump said on Truth Social on Tuesday. Iran has said it’s in a “State of Collapse,” he added.
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.
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.
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.
US Central Command said Marines boarded the commercial vessel M/V Blue Star III in the Arabian Sea on Tuesday, but released it “after conducting a search and confirming the ship’s voyage would not include an Iranian port call.” The ship was suspected of attempting to travel to Iran in violation of the US naval blockade, Central Command said.
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’s leaders, claiming that’s a reason for the diplomatic stalemate between the two countries.
Brent crude rose for a seventh straight session to settle above $111 a barrel, bringing the gain this week to more than 5%, as concern grows of a protracted peace process that could keep Hormuz shut for an indefinite period.
The war’s 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’s restrictions.
“The decision is taken at the right time in our view because it’s not going to hugely impact the market: the market is undersupplied,” 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.
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’s nuclear program. It is insisting on keeping some control over shipping through the strait, which Washington is unlikely to accept.
The president has told his advisers he’s not satisfied with Iran’s latest suggestions, the New York Times reported, citing multiple unnamed people briefed on the discussions. While it’s unclear why, his administration has previously said any deal must include agreements to curb Iran’s nuclear activities.
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.
Iran’s offer to end the war is “better than what we thought they were going to submit,” Secretary of State Marco Rubio told Fox News. Yet the White House has “questions about whether the person submitting it had the authority to submit,” he said, echoing previous US claims that Iran’s leaders are divided over their negotiating strategy.
The strategic Strait of Hormuz, through which a fifth of the world’s oil and liquefied natural gas flowed before the conflict began, remains at a virtual standstill.
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 “humiliated” by Iranian leaders and he didn’t see “what strategic exit the Americans are now choosing.” On Tuesday, Trump criticized the German leader and his country on social media, saying Merz “thinks it’s OK for Iran to have a Nuclear Weapon” and “doesn’t know what he’s talking about!”
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’s unclear what led to the vessel opting to make the journey.
Here’s more on the war’s impact:
- The US Office of Foreign Assets Control issued an alert warning financial institutions about the sanctions risk of dealing with China’s so-called teapot refineries over their role in importing Iranian oil.
- OFAC separately issued “firm guidance” warning ships about the “significant sanctions exposures related to making ‘toll’ payments to the Government of Iran” or the country’s military for safe passage through the Strait of Hormuz.
- The UK’s new ambassador to the US, Christian Turner, was reported to have said the real “special relationship” was between the US and Israel, not the UK. While the Foreign Office did not dispute the remarks, it said they did not reflect the official position of their government. The comments were first reported by the Financial Times hours before King Charles III was due to arrive at the White House on Tuesday.
- The ceasefire in Lebanon remains shaky, with both Israel and Hezbollah accusing the other of attacks. The Israeli military said it dismantled two tunnels in southern Lebanon belonging to the Tehran-backed militant group.
--With assistance from John Bowker, Paul Wallace and Devika Krishna Kumar.
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Published on April 29, 2026