Washington is waiting for Tehran's response to a formal proposal sent Wednesday that would, if accepted, reopen the Strait of Hormuz and lift a US blockade on Iranian ports within roughly one month.

The offer comes as clashes in and around the strait have put pressure on an already fragile ceasefire. The Strait of Hormuz is the narrow passage between Iran and Oman through which roughly 20% of the world's oil supply flows, making any disruption there immediately felt in global energy markets.

What the Proposal Contains

President Donald Trump's plan, as reported, has two main moving parts: Iran agrees to reopen the waterway to commercial traffic, and the US in return ends its blockade on Iranian ports. The timeline given is about one month, suggesting both sides would move in parallel rather than sequentially.

Iran has not signaled acceptance, rejection, or a counteroffer. That silence is itself significant — it leaves shipping companies, oil buyers, and energy markets unable to price in any resolution with confidence.

Why This Matters for Markets and Trade

A prolonged closure or even sustained uncertainty around the Strait of Hormuz is a direct cost shock to global oil supply. Tankers that cannot transit the strait must reroute around the Arabian Peninsula, adding days and insurance costs to every voyage. Those costs filter through into refined fuel prices for consumers and input costs for manufacturers worldwide.

The US port blockade on Iran compounds the squeeze. Iran exports oil primarily through Gulf terminals, so a blockade cuts both revenue to Tehran and supply to buyers in Asia, who have historically absorbed sanctioned Iranian crude at a discount.

Clashes that have strained the ceasefire add military risk to commercial risk. Insurance underwriters treating the strait as a war-risk zone charge higher premiums, which further raises freight costs even for ships that do transit safely.

The next concrete signal to watch is whether Tehran responds formally before the one-month window becomes moot, and whether either side takes any confidence-building steps — such as allowing civilian vessels through — while talks remain open.