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US-Iran contacts continue as terms of possible deal remain disputed

Sep 29, 2026, 03:58 GMT+1
Illustration: US and Iranian flags amid renewed diplomatic contacts
Illustration: US and Iranian flags amid renewed diplomatic contacts

The United States and Iran remained in contact through mediators Monday as efforts continued toward a possible agreement, but conflicting accounts left the terms of any deal unclear.

Iranian Foreign Minister Abbas Araghchi said a Qatari mediator held another meeting with Iran’s delegation to discuss ideas on how Tehran’s conditions could be met. He said those ideas would be raised with the US side before Qatar conveyed Washington’s response to Iran, which he hoped would happen by Tuesday.

President Donald Trump also confirmed Monday that US officials had spoken with mediators, without giving details of the discussions. Reuters reported that the separate contacts centered on an amended version of a seven-day proposal Iran presented last week.

The proposal seeks an end to hostilities, the release of frozen Iranian assets, sanctions relief and an end to the US blockade of Iranian ports. Iran would reopen the Strait of Hormuz and the two sides would resume negotiations over Tehran’s nuclear program and highly enriched uranium, according to Reuters.

But accounts of how much progress had been made diverged during the day. CNN cited an unnamed US official as describing the discussions as “positive and constructive” and saying Iran had shown flexibility on nuclear issues. An Iranian official later told state-run Press TV that Tehran’s nuclear position had not changed.

The uncertainty also extended to what Washington might offer. Axios reported, citing a US official, that Trump was willing to provide sanctions relief and release frozen Iranian funds in return for concrete nuclear concessions.

Trump later denied the report.

“Axios just released a story that ‘Trump’ offered Sanctions Relief and Frozen Funds to Iran. This is untrue. I offered them NOTHING!” he wrote on Truth Social.

Despite the dispute over the terms of a possible agreement, contacts continued through mediators.

Araghchi said exchanges of messages through Qatari and Pakistani mediators had continued throughout the process but had become more serious following Iran’s latest proposal. He said he hoped Washington’s final response would be conveyed by Tuesday.

Araghchi said he would return to Tehran rather than remain in New York awaiting the response.

“The Qataris know how to reach us whenever they have the response,” he said.

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Iran’s rial hits another record low under economic and military pressure

Sep 28, 2026, 12:48 GMT+1
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A man displays US dollar banknotes on a street in Tehran, Iran.

Iran’s rial fell to another record low on Monday, with the dollar reaching 2.45 million rials as economic and military pressures persisted and efforts took shape for possible new indirect talks with the United States.

Mediators are expected to hold separate talks with the United States and Iran on Monday or Tuesday over an amended version of a seven-day proposal Tehran presented on the sidelines of the UN General Assembly, sources briefed on the negotiations told Reuters.

Iranian Foreign Minister Abbas Araghchi and Qatari mediators remained in the United States for the discussions, an official briefed on the negotiations said.

The diplomatic effort comes with divisions visible inside Iran over negotiations and the country’s nuclear policy, while military officials continue to warn about another confrontation with Washington.

Diplomacy meets resistance at home

A group of serving and former Iranian officials called Monday for an immediate halt to cooperation under the Nuclear Non-Proliferation Treaty and withdrawal from the pact “as soon as possible.”

“Continued membership in this treaty is not in the country’s interest, and we call for withdrawal from it as a strategic necessity,” the signatories said.

Former intelligence minister Heydar Moslehi and other former officials from the administrations of Ebrahim Raisi and Mahmoud Ahmadinejad signed the statement alongside serving lawmakers.

Hardline newspaper Kayhan also criticized Iran’s diplomatic approach, saying officials had shown excessive enthusiasm for negotiations during President Masoud Pezeshkian’s visit to New York and sent Washington “a signal of weakness.”

Supreme Leader Mojtaba Khamenei, meanwhile, emphasized Iran’s military position, describing the country as the “world’s top power” according to what he called “divine calculations” and saying enemy forces had been pushed back from waters near Iran.

Military pressure centers on Hormuz

Iranian officials continued to point to the Strait of Hormuz in their warnings to Washington.

“We are acting with authority in the northern Arabian Sea and east of the Strait of Hormuz, and we will not let anyone pass. On the other side, our IRGC brothers are also standing firm,” army deputy coordinator Habibollah Sayyari said.

Lawmaker Salar Velayatmadar said Iran could close the Strait of Hormuz and Bab al-Mandab if the United States launched another attack.

Rial falls under trade and oil pressure

The economic backdrop to the negotiations has also deteriorated, with the US dollar listed at 2.45 million rials on Iran’s open market Monday.

Iranian businesses are facing higher costs in trade with neighboring Iraq as banks tighten checks and anti-money-laundering requirements, head of the Iran-Iraq Joint Chamber of Commerce, said.

The main danger was not a complete halt in trade but a gradual loss of Iran’s share of the Iraqi market, Jahangbakhsh Sanjabi Shirazi, said.

Washington is also seeking to restrict Iran’s oil income more. Iran could have “nothing left to trade for anything” within two weeks after completing its remaining oil deliveries to China, US Treasury Secretary Scott Bessent said Sunday.

About 15 million barrels remained out for delivery, Bessent estimated.

Pressure on Iranian financial operations extends into Europe. Italy’s central bank told Iran International on Monday that the Rome branch of Iran’s Bank Sepah has remained under special administration since October 2025 following the European Union’s adoption of restrictive measures against Iran.

The weakening rial and growing obstacles to trade are adding to Iran’s economic pressure, while warnings over Hormuz and recent military exchanges keep the risk of renewed conflict hanging over the country and the region.

Hormuz oil flows rise despite Iran threats against shipping

Sep 27, 2026, 16:16 GMT+1
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Vessels at the Strait of Hormuz, as seen from Musandam, Oman, on September 23, 2026.

Oil flows through the Strait of Hormuz have climbed despite the conflict, with Washington pointing to rising exports as Iran warns shipping companies against unauthorized passage and threatens US forces with retaliation if fighting resumes.

US Energy Secretary Chris Wright said on Sunday that oil flows through the strait were averaging nearly 13 million barrels a day, with shipments exceeding pre-conflict levels on at least one day last week.

“There was a day just this last week where over 20 million barrels of oil, more than pre-conflict levels, flowed out of the strait,” Wright told Fox News. The current average was “almost 13 million barrels a day,” he added.

Wright attributed pressure on energy prices more to limited refining capacity than to the volume of oil moving through Hormuz.

Iran warns shipping companies

Iran, meanwhile, portrayed the strait as a closely controlled corridor where vessels must comply with rules set by its authorities.

Iran’s Persian Gulf Strait Authority warned charterers against directing ships through routes it considers unauthorized, saying companies that do so could be placed on a non-compliance list and vessels associated with them could face restrictions.

The authority also published a letter it said came from the owners of an unnamed vessel apologizing for an unauthorized transit. According to the letter, the charterer instructed the ship to proceed without completing required declarations and approvals, putting the master under commercial pressure to comply.

The warnings were accompanied by threats from Iranian military officials. Armed forces spokesman Abolfazl Shekarchi said the United States would be “slapped” if it intervened in Hormuz.

A Revolutionary Guards Navy official challenged US President Donald Trump to send a warship near the strait if Washington believed it controlled the waterway, threatening US warships as far away as the Indian Ocean if fighting resumed.

Iranian army chief Amir Hatami also said the war was not over and that the military must remain prepared for further fighting.

Regional calls for safe passage

The dispute has drawn responses from countries concerned about commercial shipping and energy supplies.

Oman’s Foreign Minister Badr Albusaidi told the UN General Assembly that Muscat would continue working to safeguard navigation through Hormuz, urging restraint, dialogue and political solutions.

US Ambassador to the UN Mike Waltz said 146 countries had condemned Iran over attacks on civilian shipping, describing the Islamic Republic as increasingly isolated.

The rising oil flows point to increased movement through one of the world’s most important energy corridors, but warnings to shipping companies and threats of renewed military action show that control and security in Hormuz remain central to the conflict.

Why Trump said no to Iran’s Hormuz proposal

Sep 27, 2026, 12:22 GMT+1
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Ardavan Roozbeh
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CENTCOM handout of US forces in the Middle East

US President Donald Trump’s rejection of Iran’s proposal for a swift reopening of the Strait of Hormuz may say less about Washington’s opposition to a deal than about its changing assessment of Tehran’s most important bargaining chip.

Trump publicly rejected the proposal on Saturday. The plan would have reopened the strait within seven days and resumed nuclear negotiations in return for measures including lifting the US naval blockade of Iranian ports.

The president plainly wants normal shipping restored, but he appears unwilling to pay the price Tehran is asking for it.

Iranian officials have repeatedly described Hormuz as a strategic asset and a source of leverage. Disruption of the narrow waterway affects energy markets, shipping costs and inflation far beyond the region.

That importance has not disappeared. What may be changing is Iran’s ability to convert that disruption into immediate political concessions from Washington.

The US military has spent months trying to reduce Iran’s ability to attack shipping while expanding escorts for commercial vessels. CENTCOM commander Adm. Brad Cooper said last week that US forces had facilitated the transit of more than 2,000 commercial vessels and more than one billion barrels of crude oil through the strait.

The operation has not restored normal shipping, but it has allowed substantial volumes of oil to move without an agreement with Tehran, helping Washington turn Hormuz from an Iranian energy veto into what it increasingly appears to regard as a manageable risk.

Why Trump can wait

If Washington believes it can keep significant quantities of oil moving without Tehran’s cooperation, there is less incentive to lift the naval blockade and ease economic pressure simply to secure the full reopening of the strait.

Trump’s rejection also comes as his administration is increasing rather than reducing that pressure. At the UN General Assembly this week, he called for Iran’s “complete economic isolation” and said he expected an agreement after the November midterm elections

The administration has expanded restrictions on Iranian banking and aviation. Iranian airlines have lost access to several international destinations, while companies servicing sanctioned Iranian carriers face the threat of secondary US sanctions.

Trump’s rejection therefore suggests Washington believes time is, for now, working more in its favor than Tehran’s.

Hormuz still matters

None of this means Iran’s Hormuz strategy has failed.

Keeping commercial traffic moving requires a major US military operation, while shipping and insurance costs remain elevated and the threat of attacks has not disappeared. Washington is paying a price for managing the disruption.

But the balance may have shifted. Tehran still views reopening Hormuz as something it can exchange for relief from economic and military pressure. Washington appears to believe it has reduced the costs of disruption enough that it does not yet need to meet Iran’s asking price.

Seen that way, Trump’s “no” becomes more significant. He has not necessarily rejected diplomacy: contacts through mediators continue, and Iran says it is still awaiting Washington’s formal response to its proposal. US officials have also described indirect discussions as continuing.

What Trump has rejected, for now, is Tehran’s price for ending the Hormuz crisis.

Iran still holds the Hormuz card. Washington’s calculation appears to be that it no longer has to pay as much to take it off the table.

Tehran seeks negotiated way out as Washington maintains pressure

Sep 27, 2026, 03:52 GMT+1
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A father and daughter walk together on a street in Tehran, Iran, September 23, 2026

Iran says a negotiated settlement remains the only way out of the war and is awaiting a formal US response to its latest proposal, despite President Donald Trump saying he has rejected Tehran’s offer.

Iranian Foreign Minister Abbas Araghchi said Sunday that Tehran had seen an initial reaction from Trump but was still waiting for Washington’s formal response through mediators before deciding its next step.

“Only a negotiated solution can get them out of this deadlock. That is our position,” Araghchi said, according to Iranian state media. He reiterated that reopening the Strait of Hormuz depended on Iran’s conditions being met.

Trump said Saturday that he had rejected Iran’s proposal, which envisaged a phased process involving relief from the US blockade and economic pressure and the reopening of Hormuz.

The exchange leaves diplomacy in an unusual position: Washington says the Iranian offer is unacceptable, while Tehran says it is still awaiting a formal answer through the diplomatic channel.

The proposal emerged from contacts around the UN General Assembly in New York, where Trump called for Iran’s “complete economic isolation” while saying he expected an agreement after the November 3 US midterm elections.

Iranian President Masoud Pezeshkian has said Tehran would prefer an agreement before the vote. But Pezeshkian has also stressed how little trust remains between the two sides.

“We have talked with them four or five times already,” he told Al Jazeera. “We no longer trust these talks, because however much we negotiate, after a while they start attacking, imposing sanctions and doing the things they have done so far.”

US Treasury Secretary Scott Bessent said Sunday that Turkey and Oman had stopped Mahan Air flights, the UAE had halted flights by Iranian airlines and major banks in Turkey and the UAE had stopped transactions with Iran following US pressure.

Bessent thanked the governments of Turkey, Oman, the UAE and the UK for their cooperation, saying the campaign was “delivering results.” The measures further restrict Iran’s access to regional aviation and banking networks as the rial trades at record lows.

China, meanwhile, has sought to keep diplomacy alive. President Xi Jinping told Trump last week that Beijing supported a return to the June Islamabad agreement aimed at ending the war and reopening Hormuz.

For now, the central dispute remains one of sequencing. Iran wants relief from the US blockade and economic pressure before relinquishing its leverage over Hormuz. Washington wants the waterway reopened on acceptable terms before offering Tehran the relief it seeks.

Iran threatens regional air travel as US sanctions cut its flight links

Sep 25, 2026, 12:25 GMT+1
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An Iranian passenger carrying luggage leaves Najaf International Airport after arriving on an AVA Airlines flight, in Najaf, Iraq, September 23, 2026.

Iran threatened to disrupt regional air travel if its airlines lose access to flights and airport services, as Iraq's Najaf, Erbil and Sulaimaniya joined other destinations restricting Iranian connections under mounting US sanctions pressure.

“If Iran cannot fly and receive airport services, no country in the region will have that possibility either,” supreme leader adviser Mohammad Mokhber wrote in a post on Friday. He did not explain how Tehran would enforce the threat.

His remarks echoed Supreme National Security Council secretary Mohsen Rezaei, who warned Wednesday that neighboring airports would be unable to operate if they cooperated with Washington’s campaign. Rezaei also warned neighboring countries against joining further US military action.

Airports in Najaf, Erbil and Sulaymaniyah have suspended flights to and from Iran, further narrowing air links with Iraq following restrictions at Baghdad airport. Najaf’s suspension took effect at 2 a.m. Friday until further notice, closing an alternative Iranian authorities had considered for diverted Baghdad-bound services.

  • Flying to or from Iran? What to know as US pressure squeezes air links

    Flying to or from Iran? What to know as US pressure squeezes air links

  • Iran warns it would disrupt regional airports if its flights are barred

    Iran warns it would disrupt regional airports if its flights are barred

Flights to Baghdad and Muscat were canceled on September 23. Iraqi aviation sources told Reuters that Baghdad’s suspension followed government instructions; Iranian aviation spokesman Majid Akhavan said Tehran was discussing Muscat’s restrictions with Oman.

The UAE suspended Iranian airlines’ flights Thursday, explicitly citing US sanctions. Azerbaijan halted services by Iranian carriers Tuesday, while affected airlines stopped flying to Georgia from September 21.

A Tehran-Dushanbe flight also turned back Thursday after Turkmenistan denied permission to cross its airspace. Mahan Air suspended Turkey and Oman services; travel agencies said it had lost ground-handling access in Turkey.

Washington sanctioned 36 aviation-related targets on September 8, including 27 carriers it described as Iran’s remaining unsanctioned airlines and three Turkey-based companies accused of serving Mahan. Treasury says Iranian aviation networks transport weapons, military personnel and illicit cargo.

  • Iran cancels Baghdad, Muscat flights as regional restrictions tighten

    Iran cancels Baghdad, Muscat flights as regional restrictions tighten

  • UAE says it suspended Iranian airline flights over US sanctions

    UAE says it suspended Iranian airline flights over US sanctions

Treasury Secretary Scott Bessent warned that foreign airports, fuel suppliers, ground handlers and ticket sellers servicing sanctioned carriers risked US penalties, including exclusion from the dollar system. He said Iranian airlines would effectively lose international operations from September 23.

Those measures do not automatically close foreign airspace. Their effect depends on governments and service providers, and some flights continued. Bloomberg reported at least six departures Wednesday to destinations including Bangkok, Phuket, Shanghai and Kabul.

Foreign carriers have separately withdrawn services. Turkish Airlines told Iran International it had no Iran flights scheduled before March 2027, with no guaranteed restart. Earlier Iranian announcements of continuing Istanbul flights referred to other carriers.

Emirates no longer serves Tehran. Lufthansa and Austrian suspended Iran flights through October 24, while Qatar Airways cited airspace restrictions and tentatively listed November 29 for resumption. Those dates remain uncertain.

Four travel agencies contacted September 21 reported unavailable services across several other routes. Some Pegasus bookings were subsequently canceled, although booking-platform listings were not guarantees of operation.

The disruption affects family visits, business and pilgrimage to Najaf and Karbala. Agencies described travelers flying to Turkey, then taking roughly 17 hours by bus to Van and another 16–17 hours onward to Tehran, excluding border delays.

The UAE also barred Bank Melli branches from Iran-related transactions Wednesday, including trade finance and transfers.

  • China shipments help sustain Iran’s weapons programs despite US pressure - WSJ

    China shipments help sustain Iran’s weapons programs despite US pressure - WSJ

Rezaei linked the aviation warning to Tehran’s broader negotiating position, giving Washington four to five days to accept conditions already sent to mediators before talks or Hormuz’s reopening. He did not list them, saying Foreign Minister Abbas Araghchi would convey them again in New York, and presented control of the strait as negotiating leverage.