Middle East Peace Efforts Stall as US Reviews Iran's Proposal on Strait of Hormuz

Efforts to end the Middle East war appeared at a standstill on Tuesday, with the US considering Tehran's latest offer to unblock the Strait of Hormuz, and Iran saying Washington could no longer dictate terms.

Iran has blockaded the waterway -- a vital conduit for oil and gas shipments -- since the start of the US-Israeli offensive two months ago, sending shockwaves through the global economy.

CNN reported that US President Donald Trump was unlikely to accept Iran's proposal to restore traffic in the strait, as Qatar warned of the possibility of a "frozen conflict" if a definitive resolution is not found.

"We do not want to see a return to hostilities in the region anytime soon, we do not want to see a frozen conflict that ends up being thawed every time there is a political reason," Qatari foreign ministry spokesman Majed al-Ansari said at a press conference.

While a ceasefire has halted the fighting, diplomacy aimed at permanently ending the war has proven inconclusive. "We are very keen to see an end to this war that is sustainable," Ansari added.

Trump met with top security advisors on Monday to discuss the Iranian proposal after Tehran passed "written messages" to Washington via Pakistan spelling out its red lines, including on nuclear issues and Hormuz, Iran's Fars news agency reported. The proposal was "being discussed," spokeswoman Karoline Leavitt told a White House briefing.

The plan would reportedly see Tehran ease its chokehold on the strait and Washington lift its retaliatory blockade on Iranian ports while broader negotiations continue, including over the thorny question of Iran's nuclear program. But CNN, citing two sources familiar with the matter, said Trump had signaled at Monday's meeting that he was reluctant to take Hormuz off the table without resolving the nuclear question.

Iranian defence ministry spokesman Reza Talaei-Nik said on Tuesday that Washington "must abandon its illegal and irrational demands." "The United States is no longer in a position to dictate its policy to independent nations," he said.

Asked about Iran's proposal, US Secretary of State Marco Rubio told Fox News "it's better than what we thought they were going to submit," but questioned whether it was genuine. "They're very good negotiators," he said, "and we have to ensure that any deal that is made, any agreement that is made, is one that definitively prevents them from sprinting towards a nuclear weapon at any point."

Tehran would need guarantees that Washington and Israel would not attack again if it was to offer security assurances for the Gulf, Iran's envoy to the UN said.

On a visit to Russia, where he met President Vladimir Putin, Iranian Foreign Minister Abbas Araghchi said the war had shown "Iran's true power" and stability, but back home in Tehran, the mood was more sober. Small business owners and residents reported severe economic hardship as the blockade cut off flows of oil, gas and fertiliser, sending prices soaring.

Trump faces domestic pressure to find an off-ramp as prices rise, with midterm elections due in November and polls showing the war is unpopular among Americans.

Violence has continued on the war's Lebanese front, despite a recently extended ceasefire between Israel and Iran-backed Hezbollah. Israel's military on Tuesday warned residents of more than a dozen villages and towns in southern Lebanon to immediately evacuate, saying Hezbollah's "violation of the ceasefire" was compelling it to act. Hezbollah's leader Naim Qassem on Monday vowed the armed group would "not back down." Israeli army chief of staff Eyal Zamir said 2026 was "likely to be another year of fighting" for Israel on all fronts.