Iran Submits New Proposal to US as Strait of Hormuz Remains Closed

Iran has sent a new proposal to the United States amid covert diplomatic efforts to turn the fragile ceasefire into long-term peace. On the other hand, US President Donald Trump has affirmed that he will maintain the naval blockade against Iran. Citing Bloomberg on Friday (1/5/2026), the Iranian government conveyed its latest position to Washington through Pakistan, which previously served as a mediator in the first round of direct negotiations between the two parties last month. Both Iran and the US are signalling that they are awaiting the other side’s move before easing restrictions on traffic in the region. However, the Iranian state news agency, Islamic Republic News Agency (IRNA), did not detail the contents of the latest proposal, including matters related to the Strait of Hormuz or Iran’s nuclear programme. Trump stated that the blockade on Iranian ports has reduced the country’s oil revenues. He believes this economic pressure will force Tehran back to the negotiating table. In contrast, Iran’s Parliament Speaker Mohammad Bagher Ghalibaf assessed that the blockade will not be effective. He even mocked that a country as large as Iran is difficult to blockade completely. They warned that such restrictions could instead drive up global oil prices. Brent crude prices were recorded to have fallen about 3 percent to the level of 110 US dollars per barrel on Friday, trimming the weekly gain to just over 5 percent. Meanwhile, Trump is said to have received briefings from high-ranking US military officials, including the head of the US Central Command (Centcom) and the Chairman of the Joint Chiefs of Staff. An Axios report stated that the US military has prepared options for limited strikes to break the negotiation deadlock. The US has also proposed forming a maritime coalition with allies to secure the Strait of Hormuz through an initiative called “Maritime Freedom Construct”. However, New Zealand stated that support would only be given if a sustainable ceasefire is achieved.