US-Iran Talks in New York: Qatar-Mediated Strait of Hormuz Proposal Awaits Washington’s Response
Indirect talks between the United States and Iran aimed at ending a war that has lasted seven months are continuing in New York, but the two sides still disagree on what should be discussed. The latest US-Iran talks have taken place on the sidelines of the United Nations General Assembly, with Qatar acting as mediator.
Iranian Foreign Minister Abbas Araghchi left New York on Tuesday after telling state-run broadcaster IRIB that he expected an official US response to Tehran’s proposal by the end of the day. The proposal is to reopen the Strait of Hormuz, which Iran said would be done within seven days. It was first passed to Washington through Qatari mediators last week.
Qatari mediators met Araghchi in New York on Monday to discuss how to advance the proposal and then move on to wider peace talks. In a Telegram post, Araghchi insisted that the discussions focused solely on the Strait of Hormuz. That framing points to the central disagreement: Iran wants a narrow first step on the waterway, while reports say Washington has favoured a broader agenda. The formal US response had not been confirmed in the reports reviewed.
President Donald Trump said talks would resume this week, but he also denied a report by the news outlet Axios that he had offered Iran sanctions relief and the release of frozen funds. Earlier in the General Assembly week, the two sides held indirect talks for about three hours, and Iranian President Masoud Pezeshkian travelled to New York, the first time a leader of a country at war with the US had come to address the gathering on American soil. Analysts warned at the time that expecting an actual deal that week would be unrealistic.
The war has its roots in events that began in late February. Before the US launched its first strikes on Iran, the two countries were holding talks hosted by Oman, which included Iran’s nuclear programme. Those talks had not concluded when the US and Israel launched strikes, and Iran closed the Strait of Hormuz in response. In peacetime, about one-fifth of the world’s oil and natural gas is shipped through the strait, so its closure has had global effects.
Markets have felt the strain. Oil prices have been rising amid tensions and the lack of a diplomatic breakthrough, reaching close to $107 a barrel, though prices dipped by more than two percent after a report showing that Middle East oil exports had increased despite the war. Traders are also worried about inflation and the possibility that central banks will tighten policy further.
Regional violence continues. Reports say Israeli attacks have persisted in Lebanon, Syria, the occupied West Bank and Gaza despite announced agreements or ceasefires, and fighting has flared again in Yemen.
Analysts say the signs to watch for are another confirmed round of talks, agreement on sequencing or reciprocal steps, and language from both sides becoming more specific about implementation rather than repeating maximalist demands. A breakthrough is said to depend on whether Iran’s diplomats can deliver at home and whether Washington will accept a step-by-step approach.
For now, both sides say they want a diplomatic settlement, but they differ on how to reach one. The next move is expected to be the American answer on the Hormuz proposal.
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