Iran has put a partial deal on the table: guaranteed passage through the Strait of Hormuz and an end to U.S. economic sanctions, with nuclear talks deferred to a later stage. A senior Iranian official confirmed the proposal on Saturday, but U.S. President Donald Trump has so far rejected it.

The Strait of Hormuz is the narrow waterway between Iran and Oman through which roughly 20% of the world's oil supply passes. Any threat to shipping there instantly moves energy markets and raises freight and insurance costs globally. Iran has periodically threatened to close or restrict the strait as leverage in disputes with Washington.

What Iran Is Offering

The proposal separates two issues that the U.S. has typically linked: access to the strait and Iran's nuclear program. Tehran is offering to keep the waterway open and accepts lifting of American sanctions in return, but wants to set aside nuclear negotiations for a separate, later process. Washington has generally insisted that any deal address the nuclear question first or simultaneously.

Trump has rejected the offer so far, but the senior Iranian official's statement also noted that Trump prefers a non-military path to resolving the standoff. That detail matters: it suggests both sides are still in a negotiating posture rather than an escalatory one, even if no agreement is close.

Why the Gap Is Hard to Bridge

The U.S. position has long been that Iran's nuclear program is the core security risk, and that economic relief without nuclear concessions would simply fund Tehran's broader regional activities. Accepting a deal that leaves the nuclear file open would be a significant shift from that stance. For Iran, tying sanctions relief to nuclear talks that could drag on for years reduces its incentive to offer anything on the strait at all.

For oil markets, the situation cuts both ways. A formal Hormuz guarantee would ease a persistent risk premium baked into crude prices. But a continued nuclear impasse keeps the underlying tension alive, and any breakdown in talks could quickly reverse that comfort.

Watch for whether the U.S. signals any flexibility on sequencing the nuclear talks, and whether Iran escalates pressure near the strait to strengthen its hand at the table.