Iran Deems US Strait Proposal Insufficient, Threatens Regional Infrastructure

Tehran has rejected Washington’s latest response to reopen the Strait of Hormuz, labeling it insufficient and warning of retaliatory strikes on regional data centers. The stalemate threatens to prolong the closure of a critical global energy artery.

tehran rejects washington
Ai Generated : Nano Banana

The short version

  • Iran considers the US reply to its seven conditions for reopening the Strait of Hormuz insufficient.
  • Mohsen Rezaei threatened to target cables, data centers and AI facilities if intense fighting breaks out again.
  • The US has rejected Tehran's proposal for joint Iran-Oman management of the waterway.
  • Attacks on ships transiting the strait have increased since Iran's proposal was rejected.
  • Qatar and Pakistan have acted as mediators in efforts to end the war.

Why it matters: The stalemate threatens to prolong the closure of a critical global energy artery, while parallel escalations in Yemen and Gaza complicate diplomatic off-ramps for both sides.

On this page
  1. The short version
  2. Sources and further reading
  3. Frequently asked questions

Tehran has rejected Washington’s latest response to reopen the Strait of Hormuz, labeling it insufficient and warning of retaliatory strikes on regional data centers.

Iran's foreign ministry spokesperson Esmaeil Baghaei said on Monday that Tehran is still reviewing a US response to its proposal on reopening the Strait of Hormuz. The country will reply to Washington through intermediaries once the review is finished.

Baghaei told a press conference that Iran continues to exchange messages via intermediaries, without giving details. On Sunday, Iran's security chief noted that Washington's reply failed to meet the seven conditions set by Tehran for resuming negotiations and reopening the Strait of Hormuz.

We are no longer in the process of responding to the Americans. They have given their reply, and we consider it insufficient. They must clarify the issues that remain ambiguous to us.

Mohsen Rezaeihead of Iran's Supreme National Security Council

Tehran insists that talks should first prioritize restoring security in the waterway and reopening the Strait of Hormuz. This contrasts with Washington's demand to address Iran's nuclear program from the start, which remains a key dispute.

Contrasting positions on Strait management

Iran

Security-first approach

  • Focus on reopening Strait of Hormuz first
  • Proposed joint management with Oman
  • Seven conditions must be met before negotiations

United States

Nuclear-first approach

  • Insists on addressing nuclear program from outset
  • Rejected joint management proposal
  • Demands free passage under international law

Before the war, the Strait of Hormuz carried about a fifth of the global trade in oil and liquefied natural gas (LNG). Mohsen Rezaei, head of Iran's Supreme National Security Council, said that about two weeks ago Iran communicated seven conditions to the Americans.

About two weeks ago, we communicated seven conditions to the Americans, stating explicitly that until these conditions are met, the Strait of Hormuz will not be opened to them and no negotiations will take place

Mohsen Rezaeihead of Iran's Supreme National Security Council

Washington stated that ships must have free passage under international law. The US has turned down Tehran's suggestion for joint management of the waterway by Iran and Oman, which lies on the strait's southern side.

Rezaei described the strait as a major national asset and said Iran could gain economically from controlling it. He added that Iran's interests extend beyond closing the passage or collecting transit tolls.

We do not merely mean closing the passage or collecting transit tolls; our interests extend far beyond that. Of course, we can certainly generate economic benefits from the Strait of Hormuz.

Mohsen Rezaeihead of Iran's Supreme National Security Council

Mediators including Qatar and Pakistan have tried to stop the fighting that started after US and Israeli strikes on Iran on February 28. Rezaei said that over the past two months, Washington used Iraq, Qatar and Pakistan to ask Iran for proposals on reopening the strategic waterway.

Attacks on ships transiting the strait have increased since Iran's proposal was rejected, and one attack was reported Sunday. The Guard's navy warned that vessels disabling navigation and identification systems in the strait would be treated as hostile, an IRNA report said.

Efforts to stop the US-Iran war have been complicated by these attacks, which represent a significant rise in hostilities between the kingdom and the Houthis. A projectile struck the same passenger terminal at Riyadh international airport that was hit on Saturday.

Saudi authorities said injuries occurred in the latest attack, though the airport had been closed following Saturday's strike that killed 12 people. Yemen's Houthi rebels, who are backed by Iran, said they were behind both assaults on King Khalid International Airport, which has faced daily targeting since Wednesday.

Baghaei reiterated Tehran's willingness to assist in resolving the crisis through dialogue regarding the growing conflict between Saudi Arabia and Yemen's Houthis, an Iranian ally.

The issue of Yemen should have been resolved a long time ago with the (UN) roadmap and we had said we would support any agreement reached by Yemenis and Saudis … Our request is that this situation be resolved through dialogue.

Esmaeil BaghaeiIran foreign ministry spokesperson
  1. 28 FebWar begins

    US and Israeli strikes on Iran mark the start of the conflict.

  2. JuneCeasefire collapses

    An interim ceasefire crumbles and on-off strikes resume.

  3. Mid-SeptemberProposal presented

    Iran presents its proposal to reopen the Strait of Hormuz.

  4. End of SeptemberUN exchanges

    Iran and the US exchange proposals to end the conflict through mediators during the UN General Assembly.

What we know

  • Iran is reviewing the US response and finds it lacking regarding its seven conditions.
  • Attacks on ships have increased since the proposal rejection.

Still unclear

  • The specific details of Iran's seven conditions for reopening the Strait.
  • Which specific conditions the US accepted or left unresolved.
  • The exact nature of the ambiguities Washington must clarify.
  • The identity of all intermediaries currently facilitating messages.

Sources and further reading

  1. Iran says it will reply to US response on Hormuz proposal once review over (opens in a new tab) BusinessWorld
  2. Iran says it will reply to US response on Hormuz proposal once review over (opens in a new tab) The Straits Times
  3. Iran calls latest US response to proposal insufficient, and other Mideast developments (opens in a new tab) ABC News
  4. Iran says US response to proposal to reopen Strait of Hormuz is insufficient (opens in a new tab) The National

This article was prepared by the GlobePrism editorial team from the public reporting linked above. How we report

Frequently asked questions

What are Iran's conditions for reopening the Strait of Hormuz?

The specific details of the seven conditions remain unclear. Iran stated that until these conditions are met, the Strait will not be opened and no negotiations will take place.

How did the US respond to Iran's proposal?

Washington responded by accepting some of Iran's conditions while leaving others unresolved. Iran considers the reply insufficient and has asked for clarification on ambiguous issues.

Who is mediating between Iran and the US?

Qatar and Pakistan have acted as mediators. Rezaei also mentioned Iraq as a channel through which Washington approached Tehran.

What threats has Iran made regarding regional infrastructure?

Mohsen Rezaei threatened to target cables, data centers, AI facilities and other sites in the region if intense fighting breaks out again.

What is the current status of shipping in the Strait of Hormuz?

Attacks on ships transiting the strait have increased since Iran's proposal was rejected. The Revolutionary Guard navy warned that ships turning off identification systems would be deemed hostile.