• President Trump has rejected an Iranian proposal to reopen the Strait of Hormuz, according to Axios.
  • The offer was reportedly tied to conditions for broader U.S.-Iran talks, including nuclear negotiations.
  • Oil markets remain volatile as the standoff over the critical chokepoint continues.

Trump rejects Iran's overture

President Donald Trump has turned down an Iranian offer to reopen the Strait of Hormuz, Axios reported on Thursday, citing unnamed sources familiar with the matter. The proposal was conditional on the U.S. entering broader negotiations covering nuclear and regional security issues, a precondition that the administration has consistently rebuffed.

“We are not interested in piecemeal deals that ignore the full scope of Iran’s destabilizing activities,” a senior administration official told Axios. The White House did not respond to requests for comment.

The Strait of Hormuz, a narrow waterway through which about 20% of the world's oil passes, has been a flashpoint in U.S.-Iran tensions. Iran had signaled it would allow normal shipping to resume if Washington agreed to return to nuclear talks and ease some sanctions.

Market reaction

Oil prices edged higher on the news, with Brent crude rising 1.2% to $72.45 a barrel in afternoon trading. Shipping insurance rates for vessels transiting the Persian Gulf also ticked up, according to industry sources. “Every time there’s a setback in these talks, you see a risk premium built back into crude,” said Helima Croft, head of commodity strategy at RBC Capital Markets.

The uncertainty has ripple effects across global energy markets. Tanker owners have been avoiding the region, forcing some shipments to take longer, costlier routes. “The market is pricing in a prolonged disruption,” a shipping broker said.

No deal in sight

Iran’s offer, while not formally publicized, was viewed by some analysts as a attempt to break the diplomatic logjam. But the Trump administration’s focus on maximum pressure has left little room for maneuver. “The U.S. insists that any easing of restrictions must be part of a comprehensive agreement that includes Iran’s missile program and support for proxies,” said a former State Department official.

The rejection marks the latest in a series of failed efforts to de-escalate tensions. Previous rounds of indirect talks have fizzled over disagreements on sequencing and scope.

Correction: A previous version of this article misstated the timing of the market reaction. The correct time is afternoon trading.