Iranian Foreign Minister Abbas Araghchi said only a 'negotiated solution' can end the conflict with the United States after President Donald Trump publicly rejected an Iranian proposal to reopen the Strait of Hormuz. The vital waterway, through which around a fifth of the world's gas and oil supply flows, has been effectively closed since the outbreak of war in February.

Araghchi, in a post on Telegram, acknowledged Trump's rejection but said Iran would wait for a 'definitive' official US response. He noted that Trump had made contradictory statements in the past and that the conditions to open the strait were the same as those included in a memorandum of understanding (MOU) signed in June between the US and Iran. Iran had raised the issue of reopening the strait and ending hostilities during negotiations at the UN General Assembly in New York.

Trump, speaking at the White House, said the Iranian proposal was not 'acceptable' and that Tehran wanted to make a deal to open the strait to commercial shipping within seven days because 'they're losing so badly.' He claimed the US already had 'total control' of the strait, with 'massive amounts of oil' passing through it, causing 'massive rises in global oil prices' and 'steep fuel cost increases for consumers.'

Oman, acting as a mediator, called for continued open dialogue to resolve the crisis. Its foreign minister, Sayyid Badr bin Hamad bin Hamood Albusaidi, urged all parties to cooperate with Oman in safeguarding navigation in the strategic waterway. US Ambassador to NATO Matthew Whitaker supported Trump's rejection, calling the Iranian proposal 'half measures' and 'illusory deals to make themselves look good on the world stage.'

Treasury Secretary Scott Bessent said economic sanctions imposed by the US were taking a toll on Iran, citing halted flights from Iranian airlines and reduced transactions with Iranian banks in Turkey and the UAE. The Trump administration has labeled the economic blockade 'Operation Economic Outcast,' aiming to force Iran to stop attacks on vessels in the Strait of Hormuz. However, some economists question the effectiveness of the sanctions, noting that China, Iran's largest oil buyer, has continued to do business with Tehran despite previous US sanctions.

Iranian President Masoud Pezeshkian, who attended the UN General Assembly, said 'distrust created by this war needs to be overcome' for talks to succeed. He expressed openness to implementing the MOU in stages but emphasized that the US must show it does not intend to 'bully or coerce' Iran. Pezeshkian also stated that Iran is ready for talks on its nuclear program but would not accept any concessions over its rights, including enriching uranium or shipping its highly enriched uranium out of the country.

The conflict, which began on February 28, has alternated between pauses and renewed strikes, killing thousands and degrading Iran's conventional forces. Iran and its allies have extended the conflict throughout the region, with Iran striking US allies in the Gulf and its Houthi allies in Yemen targeting Saudi interests. Iran's Revolutionary Guards spokesman, Hossein Mohebi, said the country would 'not cease punishing the U.S. until Iran’s seven conditions are met.'

Yemen’s Saudi-led coalition intercepted two ballistic missiles and two drones launched by the Houthis toward the kingdom on Saturday. Mohebi had previously stated that ending hostilities in Yemen was also among Tehran's demands. The US and Iran signed a MOU in June to end the war, reopen the strait, and launch talks on Iran's nuclear program, but the deal collapsed after Iran fired on commercial ships in Hormuz that it accused of deviating from its approved route.