Updated September 26, 2026
For one day at the United Nations, it looked like the world's most important oil chokepoint might finally reopen. Iran said it had handed Washington a plan to reopen the Strait of Hormuz within seven days. Hours later, the Wall Street Journal reported that US President Donald Trump had rejected it and told aides he expects to resume strikes on Iran after November's midterm elections.
The back-and-forth matters far beyond the Middle East. Before the war, about a fifth of the world's traded oil and gas passed through this narrow waterway. Here's what Iran proposed, why the US pushed back, and what it could mean for fuel prices, including in India.
Shipping through Hormuz has been disrupted for months. (Photo: Dylan McLeod / Unsplash)
What Is Iran's Seven-Day Plan?
Iran's Foreign Minister Abbas Araghchi announced the proposal on the sidelines of the UN General Assembly in New York. Qatar has been passing messages between the two sides. "The moment they accept this plan, from the next day, this timetable can start," Araghchi told reporters.
He did not publish full details, but reports from Al Jazeera, Business Standard and others describe a clear sequence:
- Days 1 to 5: The US takes a set of steps, reportedly including ending its naval blockade of Iranian ports and releasing around $12 billion in frozen Iranian assets.
- Fighting stops on all fronts, including Lebanon, according to Al Jazeera's reporting.
- Day 6: The Strait of Hormuz reopens to shipping.
- Day 7: Talks begin on a final deal, including Iran's nuclear programme.
Built on the failed June deal
Araghchi said the plan resembles the June 17 memorandum of understanding between Iran and the US. That deal halted fighting, allowed toll-free passage through the strait for 60 days, and included waivers for Iranian oil exports. It unravelled in July amid new clashes over shipping routes.
The new version condenses the timeline and changes the order of steps. Crucially, it would also give Iran and Oman a main role in managing the strait before broader peace terms are agreed.
Why Trump Reportedly Said No
According to the Wall Street Journal, citing US officials, Trump rejected the seven-day proposal. The officials said he expects to resume bombing after the midterms, though he is reluctant to restart major combat operations and the scope of any strikes remains unclear. They added that his views could still change.
The sticking point: the nuclear file
The core disagreement is about sequencing. Iran wants the blockade lifted, sanctions eased and a guarantee against strikes before it discusses its nuclear programme. The US wants the nuclear issue on the table immediately, as part of one package.
Analysts told Al Jazeera that Washington believes its naval blockade and tighter sanctions are working, and that it can wait until Tehran offers bigger concessions. Iran, meanwhile, sees control of the strait as its main source of leverage.
Midterm politics in the background
High fuel prices are a political headache for the White House ahead of November's vote. Some analysts see Iran's public offer as a way to pile pressure on Trump. In his UN address this week, Trump accused Iran of waiting to see how his party performs, predicted a deal after the vote, and warned of severe consequences if there is no agreement.
Diplomacy has not stopped. Araghchi met US envoy Steve Witkoff and Jared Kushner earlier this week in talks mediated by Qatar. Iran called the exchange productive, while Secretary of State Marco Rubio said it was not a major breakthrough. Separately, France is reportedly drafting a UN Security Council resolution supporting freedom of navigation in the strait.
Why the Strait of Hormuz Matters to Everyone
The strait runs between Iran and Oman and links Gulf oil and gas producers to world markets. When shipping there slows or stops, energy costs rise everywhere, from US gas stations to Indian petrol pumps.
Disruption in Hormuz has pushed up fuel costs worldwide. (Photo: Michael Pointner / Unsplash)
What it means for India
India imports most of the crude oil it uses, and a large share of it comes from the Gulf. That makes the country especially sensitive to what happens in Hormuz.
- Growth is holding up: This week S&P, Fitch, the ADB and the OECD all raised India's FY27 growth forecasts to around 7%, citing strong domestic demand despite the oil shock.
- Inflation is the risk: S&P and Fitch expect the Reserve Bank of India to raise interest rates by at least 25 basis points this year because of price pressures.
- For households: A lasting reopening of the strait could ease fuel and transport costs. A return to strikes after November could push them higher again.
What to Watch Next
The next few weeks will shape whether this conflict, now nearing its seventh month, moves toward a deal or a new round of fighting. Key signals to follow:
- Any official US response to Iran's seven-day plan, beyond the WSJ report.
- Progress on France's draft UN resolution on freedom of navigation.
- Further Qatar-mediated contacts between Araghchi and US envoys.
- Oil price moves and the RBI's next policy decision.
- The outcome of the US midterm elections in November.
The Bottom Line
Iran has put a concrete timetable on the table: reopen the Strait of Hormuz in seven days in exchange for lifting the blockade and freeing assets. The US, by most accounts, wants the nuclear question settled first and appears willing to wait. Until the two sides agree on the order of steps, the world's most important energy corridor will stay a source of risk for oil prices and for household budgets far from the Gulf.
What do you think? Should the US accept Iran's timetable to bring fuel prices down, or hold out for a nuclear deal first? Share your view in the comments, and follow Info Globe for daily updates on news that affects your money.
Sources: Al Jazeera, Wall Street Journal (via Times of Israel), Business Standard, South China Morning Post, ThePrint.
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