Deal or No Deal: Trump Rejects Iran's Hormuz Proposal But Still Bets on More Talks This Week

Washington, D.C. — September 27, 2026

The on-again, off-again diplomatic dance between Washington and Tehran took another turn this weekend, as President Trump publicly rejected Iran's latest proposal to reopen the Strait of Hormuz — while simultaneously signaling he expects fresh negotiations to resume within days.

What Iran Offered — And Why Trump Said No

Iran's Foreign Minister Abbas Araghchi delivered Tehran's proposal to U.S. officials Steve Witkoff and Jared Kushner: Iran would reopen the strategically vital Strait of Hormuz and resume nuclear talks within a week, in exchange for the U.S. lifting its naval blockade, easing sanctions on Iranian oil sales, and reinstating a regional ceasefire.

Trump rejected the offer Saturday, calling it "unacceptable." His reasoning, delivered bluntly to reporters: Iran wants the strait reopened immediately because, in his view, they're "losing so badly." He added that the U.S. currently has "total control" of the waterway.

Speaking to Axios in a phone interview published Sunday, Trump elaborated further, saying Iran's offer amounted to something Washington might have accepted roughly a year ago — before the conflict escalated further. In his words, Iran had "overplayed their hand."

But the Door Isn't Closed

Despite the rejection, Trump told Axios he expects more talks with Iran to take place this week, with two regional sources confirming that another round of indirect dialogue between the two countries could begin as early as Monday. Behind the scenes, Qatari mediators have reportedly continued shuttle diplomacy, working to bridge the gap between the two sides — Qatar's prime minister met with Iran's president in New York last Thursday, followed shortly by senior Qatari officials briefing Witkoff on the discussions.

U.S. Ambassador to the UN Mike Waltz told CNN that Trump's rejection stemmed from a belief that Iran wasn't negotiating in good faith.

The Core Sticking Point

The fundamental disagreement hasn't moved much: Iran wants any negotiations centered on reopening the Strait of Hormuz and lifting the U.S. naval blockade. The Trump administration, meanwhile, is insisting that Iran agree to nuclear concessions as a precondition — a gap that, as of this weekend, regional sources say remains unclear whether it can actually be bridged.

Iran's Araghchi, speaking from New York, said Tehran had not yet been formally notified of Trump's rejection through official channels, adding that Iran remains "fully prepared for the war to be resumed" while simultaneously insisting the country stands ready for diplomacy — should Trump choose that path.

Strikes Still on the Table

Asked directly whether the U.S. is considering resuming military strikes against Iran, Trump did not rule it out, saying simply that the option remains active and that he is "always thinking about it."

Meanwhile, Trump noted that the U.S. military has been facilitating oil shipments moving out through the Strait of Hormuz even amid the standoff — a claim that comes as the strait, through which roughly a fifth of the world's oil supply typically passes, has remained a central flashpoint throughout the broader conflict.

Reaction From Washington

Not everyone in Washington is pushing for compromise. Republican Senator John Kennedy of Louisiana dismissed Iran's proposal as "not a serious offer" during a Sunday appearance on Face the Nation, backing Trump's decision to reject it and arguing for continued sanctions and blockade pressure. He acknowledged, however, that the partial closure of the strait has driven up oil prices in a way that's proven painful for consumers, framing the U.S. as facing a choice between finding a way to settle the standoff or escalating further.


This is a developing story tied to an active and volatile international conflict. Details of any renewed talks this week, along with Iran's formal response to Trump's rejection, were not yet available at the time of publication.

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