The United States has rejected Iran’s latest proposal to resolve the ongoing two-month conflict, a development that has further dimmed hopes for de-escalation in a war already disrupting global energy markets and intensifying regional instability.

A US official, speaking after President Donald Trump met with senior advisers on Monday, said the proposal was “unlikely to be acceptable” because it delays discussion of Iran’s nuclear programme until after the war ends and maritime disputes in the Gulf are settled. Washington maintains that nuclear issues must be addressed at the outset of any negotiations.

White House spokeswoman Olivia Wales reiterated that the administration “will not negotiate through the press” and has been “clear about our red lines” as it seeks an end to the conflict, which began in February alongside Israel’s military operations against Iran.

Iran’s plan reportedly envisions a phased diplomatic process. According to senior Iranian officials, the first stage would involve ending hostilities and securing guarantees that the United States would not resume military action. Subsequent steps would address restrictions on Iranian maritime trade and the status of the Strait of Hormuz, a critical global energy chokepoint. Only after these stages, Iran proposes, would negotiations turn to its nuclear programme, alongside a demand for recognition of its right to enrich uranium.

The nuclear dispute remains a central obstacle. A 2015 agreement between Iran and several world powers, including the United States, had significantly curtailed Iran’s nuclear activities, which Tehran insists are for civilian purposes. However, the deal collapsed after Trump withdrew from it during his first term in office.

Diplomatic efforts have recently stalled, with planned visits by US special envoy Steve Witkoff and Jared Kushner to Islamabad cancelled. Iranian Foreign Minister Abbas Araqchi, who has engaged in shuttle diplomacy across the region, has since met officials in Oman and Russia, where President Vladimir Putin expressed support for Tehran.

The deadlock comes amid growing economic repercussions. Oil prices have continued to rise as shipping through the Strait of Hormuz has sharply declined. Ship-tracking data indicates that only a fraction of normal traffic is currently passing through the waterway, with several tankers reportedly forced to turn back.

Market analysts warn that the physical disruption of crude flows, rather than political rhetoric, is now driving price volatility, underscoring the broader global stakes of the conflict.

© Naya Daur