Iran's foreign ministry has pushed back against the United States, calling American demands in ongoing nuclear and conflict negotiations "unreasonable." Spokesman Esmaeil Baghaei said Iran's own proposal, which includes steps to end the current conflict and unblock the Strait of Hormuz, is generous and should be taken seriously.

The Strait of Hormuz is one of the world's most critical shipping lanes. Roughly 20% of global oil trade passes through it daily, connecting Gulf producers like Saudi Arabia, Iraq, and the UAE to international markets. Any disruption there hits oil prices fast and broadly.

What Iran Is Offering

Baghaei did not detail the specific terms Iran put forward, but framed the proposal as a meaningful concession that addresses both the military conflict and the strait's status. Iran has previously used the threat of closing Hormuz as leverage during periods of high tension with the US and Israel.

The talks appear to be at a sticking point. Iran's characterization of US demands as "unreasonable" suggests the two sides remain far apart on core conditions, likely around uranium enrichment limits, sanctions relief, and security guarantees, though the source does not specify exact US positions.

Why the Strait Matters to Markets

The inclusion of Hormuz in Iran's proposal is the detail with the clearest market relevance. If the strait were blocked or significantly disrupted, oil supply from the Gulf would tighten immediately, pushing prices higher globally. Insurance and shipping costs for tankers in the region would spike as well. Conversely, a credible deal that formally takes Hormuz off the table as a pressure point would reduce the geopolitical risk premium currently baked into oil prices.

For India, the stakes are direct. India is one of the largest buyers of Gulf crude and relies heavily on the Hormuz corridor for energy imports. A prolonged closure or even persistent threat of one would pressure the rupee, widen the trade deficit, and raise domestic fuel costs.

The signal to watch is whether either side responds publicly with a counter-proposal or a specific list of demands. Right now, the exchange is rhetorical, Iran calling US terms unreasonable, with no confirmed US response in the source. Until concrete terms surface or a new round of talks is scheduled, the negotiation appears stalled.