Iran says only diplomacy can end the conflict after Trump rejects Hormuz proposal

# What happened Iran responded to public comments by US President Donald Trump by saying only diplomacy can resolve the conflict with the United States and Israel. Tehran says its conditions for reopening the Strait of Hormuz are clear and any reopening depends on those conditions being met.

# The Iranian proposal

# US reaction President Trump told reporters he rejected the Iranian plan and framed the offer as a sign of Iranian desperation. A US envoy to the United Nations, Mike Waltz, told CNN that the proposal effectively asked for immediate lifting of sanctions and release of frozen assets before further negotiations, a demand the administration found unacceptable. Despite Trump's public statement, Araqchi said mediators have not officially relayed a formal US rejection to Tehran.

# How the conflict reached this point The current conflict began on February 28 when the United States and Israel launched strikes on Iran. Since then the war has alternated between pauses and renewed strikes, causing thousands of deaths, degrading Iran's conventional forces, and damaging Iran's economy. Iran and its allies extended the fighting across the region, striking US allies with drones and missiles and enabling Houthi attacks that have targeted Saudi interests.

# Regional and economic consequences The fighting has disrupted shipping through two key waterways. Iranian attacks on vessels in the Strait of Hormuz have drastically reduced traffic there. Separately, Houthi advances in Yemen and attacks on Saudi targets have increased the risk to Red Sea shipping and Saudi oil exports. Saudi authorities and educational institutions have shown signs of disruption, such as schools shifting to remote learning in Riyadh for a week, according to messages reported by people who received them.

Yemen's Houthi-run health ministry reported civilian casualties in Taiz province following a strike on market shops, while Yemen's internationally recognized government said it targeted a Houthi military camp at the same junction. Those incidents illustrate how fighting on multiple fronts is affecting civilians and military operations across the region.

# What happens next Iran says it is waiting for mediators to convey definitive US views before making decisions. The US signaled it expects negotiators to continue engagement, even as the administration publicly rejected the proposal. Both sides have left open limited diplomatic channels through intermediaries, but disagreement over immediate sanctions relief and asset releases remains a core obstacle to any rapid agreement.

If mediators pass an official US response to Tehran, Iran has indicated it will evaluate that response and decide whether to proceed with further negotiations. The wider conflict's military and economic impacts — particularly on oil flows and regional security — mean any progress or failure at the negotiating table will have immediate consequences for shipping, regional alignments, and civilian populations.

# Bottom line Tehran is pressing a conditional, negotiated route to reopen the Strait of Hormuz and pause hostilities. Washington has publicly rejected the proposal, citing concerns about demands for preconditions such as sanctions relief. Mediators remain the immediate conduit for communication, and their next steps will determine whether diplomacy can advance or the conflict persists with continued regional spillover.