World
The continuing blockade of the vital Strait of Hormuz has also increased concerns that there will be an economic downturn
By Reuters Published: 2026-05-01T19:44:00+04:00 2 min read
Drone view of oil tanker Helga berthed at one of Iraq's southern offshore oil terminals near Basra seen in this Reuters file photo. The closure of the Strait of Hormuz has caused unprecedented disruption to energy markets.
Washington: Tehran has submitted its latest proposal for negotiations with the United States, Iranian state media and a Pakistani official said on Friday, a move that could offer hope for breaking a deadlock in efforts to end the Iran war.
The official, involved in Pakistani mediation efforts over the war, said Pakistan had received the proposal late on Thursday and had forwarded it to the US.
Neither the official nor Iranian state news agency IRNA gave details. Global oil prices, which remain well above $100 a barrel, eased following news of the proposal.
The closure of the Strait of Hormuz has caused unprecedented disruption to energy markets, choking off 20% of the world's oil and gas supplies and causing a record rally in oil prices.
The blockade of the vital sea channel has also increased concerns that there will be an economic downturn. The US Navy is blocking exports of Iranian crude oil. A ceasefire has been in place since April 8 but reports that US President Donald Trump was to be briefed on plans for new military strikes to compel Iran to negotiate had pushed global oil prices up to a four-year high at one point on Thursday.
Iran has activated air defences and plans a wide response if attacked, having assessed that there will be a short, intensive US strike, possibly followed by an Israeli attack, two senior Iranian sources told Reuters on condition of anonymity.
Washington has not said what its next steps are. Trump said on Tuesday he was unhappy with the previous proposal from Iran, and Pakistan has not set a date for new talks on ending a war that has killed thousands.
Underlining the concerns of the Gulf states, Dr. Anwar Gargash, Diplomatic Advisor to His Highness the President of the UAE, said the "collective international will and provisions of international law" were the primary guarantors of freedom of navigation through the strait.
"And, of course, no unilateral Iranian arrangements can be trusted or relied upon following its treacherous aggression against all its neighbours," Gargash wrote. Trump faces a formal US deadline on Friday to end the war or make the case to Congress for extending it under the 1973 War Powers Resolution.
The date looks set to pass without altering the course of the conflict after a senior administration official said that, for the purposes of the resolution, hostilities had terminated due to the April ceasefire between Tehran and Washington.
Financial and energy markets remained on edge because of concerns about the impasse over negotiations and worries that there could be a prolonged closure of the Strait of Hormuz.