Iran said Sunday that diplomacy remained the only path to ending its conflict with the United States and Israel, even after President Donald Trump rejected Tehran's proposal to reopen the Strait of Hormuz and halt hostilities.
The rejection has deepened uncertainty over efforts to find a diplomatic exit to the conflict, though an analyst and regional sources indicated that talks could continue.
Barak Ravid, a CNN analyst and Washington correspondent for Israel's Channel 12, said Trump told him in a phone interview that he expected US negotiators to hold further discussions with Iran this week.
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Regional sources separately said another round of indirect negotiations could take place as early as Monday, suggesting that diplomatic contacts have not been abandoned despite the public disagreement over Tehran's proposal.
????President Trump told me in a phone interview that he expects U.S. negotiators to engage in more talks with the country this week. Regional sources say another round of indirect negotiations will take place as early as Monday. My story on @axioshttps://t.co/NQyM5PzM2k
— Barak Ravid (@BarakRavid) September 27, 2026
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Iranian Foreign Minister Abbas Araqchi said Tehran's conditions for reopening the strategic waterway remained unchanged. He said Iran was still waiting for a formal response from Washington through mediators before deciding its next steps.
The proposal, delivered to the United States through Qatari mediators during the United Nations General Assembly in New York, offered a seven-day framework for easing the crisis.
Under Tehran's plan, the Strait of Hormuz could be reopened after the United States took specified steps, followed by renewed negotiations aimed at reaching a broader agreement.
Araqchi has described the sequence as conditional: Washington would first have to accept the plan and meet the agreed requirements, after which the waterway could be reopened and negotiations resumed.
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CNN reported that Iranian officials had said the strait would open on the sixth day, with talks toward a final agreement beginning on the seventh.
Trump, however, said Saturday that he had rejected the proposal. US officials have argued that Tehran's offer required Washington to make significant concessions, including sanctions relief and the release of frozen Iranian assets, before Iran made substantive commitments of its own.
The disagreement has left the Strait of Hormuz at the centre of the confrontation. Iran's earlier offer to reopen the strait had helped push crude prices lower as traders assessed the possibility of a diplomatic breakthrough.
The economic stakes extend well beyond the oil market. Prolonged disruption to shipping can raise transportation and insurance costs, complicate energy supplies and add to inflationary pressures at a time when central banks remain sensitive to movements in crude prices.
The conflict has also placed additional pressure on Saudi Arabia, whose oil exports have traditionally relied heavily on Gulf shipping routes.
Riyadh has sought to make greater use of alternative infrastructure, including its East-West pipeline to the Red Sea, while fighting involving Iran-backed Houthi forces has raised concerns about shipping through other regional waterways.
Amid the continuous deadlock, Reuters has reported that Saudi Arabia has resumed operations on the pipeline as the wider conflict disrupts established energy routes.
For now, the diplomatic track remains open but uncertain. Iran says it is waiting for Washington's definitive response, while Trump has signalled that his negotiators may continue talking with Tehran.
The coming days could therefore determine whether the latest proposal becomes the basis for renewed negotiations or another failed attempt to bridge the widening differences between the two sides.
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