DUBAI, United Arab Emirates — Sunday, October 4, 2026 — The diplomatic scramble over the Strait of Hormuz collapsed into open confrontation on Sunday, as United States President Donald Trump rejected Tehran’s latest ceasefire offer outright and Iran declared the world’s most important oil waterway will remain shut until Washington accepts seven conditions laid down in a June interim agreement.
The twin announcements, delivered within hours of each other, ended a weekend of whiplash after Trump had claimed Saturday that a United States–Iran deal would be signed Sunday with the strait “OPEN TO ALL” — a claim Tehran immediately disputed.
Seven conditions, no reopening
Mohammad Baqer Ghalibaf, Iran’s parliament speaker and its top negotiator, said Sunday that the Strait of Hormuz “will not be opened” until seven Iranian conditions set out in the Islamabad Memorandum of Understanding — the interim agreement Washington and Tehran signed in June — are met.
“The position of the Islamic Republic of Iran is completely clear and firm, and the Strait of Hormuz will not be opened until our seven conditions, based on the Islamabad Memorandum of Understanding, are met,” Ghalibaf was quoted as saying by Iran’s Nournews, as reported by Reuters.
Ghalibaf said Washington had recently sent proposals to Tehran through a mediator, but accused the United States of trying to prolong the process and dictate one-sided demands. “The period of dragging out the process and dictating one-sided demands is over,” he said.
Araqchi: reopening possible within seven days
In a separate appearance in Tehran, Iranian Foreign Minister Abbas Araqchi told foreign diplomats that a plan put forward by Iran could restore normal passage through the strait within seven days if Washington accepts its terms. He added that Iran preferred diplomacy but was ready for confrontation. “If they again move towards military solutions, we are more prepared than before,” he said.
Trump: “They overplayed their hand”
In Washington, Trump told reporters on Sunday that he had rejected Iran’s proposal for a ceasefire and a full reopening of the waterway in exchange for sanctions relief and access to frozen Iranian funds.
“We’re taking tremendous amounts of oil out. Last night, we took a record amount of oil out of the Hormuz Strait, more than we took out before the war,” Trump said. He added that Tehran had “overplayed their hand” and said he expected talks to resume this week.
Treasury Secretary Scott Bessent echoed the president’s line, insisting the waterway was effectively open. “The straits are open,” Bessent said. “We’re averaging now 15 to 22 million barrels a day. It was at about 20 pre-conflict.” He called Iran isolated, adding: “They are on their knees.”
What Iran is demanding
Iran’s conditions, according to earlier reporting, include lifting the American blockade of Iranian ports, removing sanctions on its oil exports, releasing frozen Iranian assets, and ending United States threats and military operations against the country. Tehran received Washington’s formal reply to its latest proposal last week via Qatari intermediaries.
Iran has held the strait since the United States launched its war on the Islamic Republic in late February, while Washington has maintained a counter-blockade of Iranian ports and layered on sanctions aimed at choking Tehran’s economy. Traders said Sunday’s statements left oil markets braced for more volatility, with war-risk insurance premiums climbing across the Gulf.
