Iran offered to open the Strait of Hormuz and halt attacks in exchange for sanctions relief, but the Trump administration rejected the proposal and warned against paying Iran transit fees.
Iran Proposes Strait of Hormuz Deal, US Responds
Iranian authorities announced plans to charge fees for passage through the Strait of Hormuz. In response, the U.S. Office of Foreign Assets Control (OFAC) warned on May 1st against paying these fees.
The U.S. cautioned that such payments could be considered transactions with the Iranian regime and the Islamic Revolutionary Guard Corps (IRGC), both subject to U.S. sanctions.
US Warns Against Paying Iran for Hormuz Transit
OFAC warned that transactions related to passage through the waterway could expose businesses and individuals to sanctions.
OFAC Statement on Potential Sanctions
“OFAC issues this advisory to inform U.S. and non-U.S. persons of the sanctions risks associated with making such payments to the Iranian regime or seeking assurances of safe passage from it,” the statement read. “This risk exists regardless of the method of payment.”
Strait of Hormuz Traffic Significantly Reduced
The Strait of Hormuz, crucial for oil transportation, has been nearly blocked by Iran since the start of U.S. and Israeli attacks on the country at the end of February. According to Lloyd’s List Intelligence, approximately 3,000 ships typically transited the strait per month before February 28th.
Following the conflict’s outbreak, this number dropped to around 150 vessels.
Trump Rejects Iran’s Offer
Reuters reported, citing a high-ranking Iranian official, details of Iran’s recent proposal to the United States. The offer included an end to the war with a guarantee that Israel and the United States would not attack again, Iran opening the Strait of Hormuz, and the U.S. lifting the blockade of Iranian ports.
Further Negotiations on Iran’s Nuclear Program
Subsequent talks between the U.S. and Iran would focus on limiting Iran’s nuclear program in exchange for sanctions relief. Iran would seek U.S. recognition of its right to enrich uranium for peaceful purposes.
Discussions regarding the more complex nuclear issue were to be postponed to create a more favorable negotiating atmosphere, according to the cited official.
Trump Declares End to Hostilities, Continues Negotiations
On May 1st, President Trump informed Congress in a letter that hostilities with Iran had “ended,” aiming to avoid needing congressional approval to continue military operations.
Trump also stated in a conversation with reporters that he was conducting negotiations with Iran by phone and that Tehran had “made great strides” toward an agreement, though he expressed uncertainty about reaching a final deal.
