U.S. says examining latest Iran proposal on Hormuz

Iran closed the Strait of Hormuz to international shipping in late February 2026 following the onset of a US-Israeli air campaign against Iran; the Iranian R...

What Happened

Iran closed the Strait of Hormuz to international shipping in late February 2026 following the onset of a US-Israeli air campaign against Iran; the Iranian Revolutionary Guard Corps (IRGC) has boarded and attacked merchant vessels and laid sea mines in the strait.
The United States responded with a naval blockade of Iranian ports from April 13, 2026, creating a "dual blockade" — both sides blocking shipping — that has severely disrupted global oil and gas trade.
Iran put forward a proposal to reopen the strait in exchange for the lifting of the US naval blockade and a cessation of hostilities, while deferring nuclear negotiations to a later stage.
The US initially indicated it was examining the proposal, but the Secretary of State rejected it, arguing that Iran's condition — that vessels must coordinate passage with Iran and pay fees — was unacceptable.
Brent crude oil was trading at approximately USD 108 per barrel as of late April 2026, nearly 50% higher than at the start of the conflict, with further escalation risks driving prices above USD 110.

Static Topic Bridges

The Strait of Hormuz: Geography and Strategic Significance

The Strait of Hormuz is a narrow waterway connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea. It is flanked by Iran to the north and Oman (and the UAE) to the south, and lies at the geopolitical crossroads of the oil-rich Gulf states and global energy markets.

Width at narrowest point: approximately 29 nautical miles (54 km); navigable shipping lanes are only 2 miles (3.7 km) wide in each direction, with a 2-mile buffer zone.
Oil transit: In 2025, approximately 20 million barrels per day (mb/d) of crude oil and petroleum products transited the strait — roughly 20–25% of global seaborne oil trade.
LNG transit: Approximately one-fifth of global LNG trade passed through the strait as of 2022.
Ships must traverse the territorial waters of both Iran and Oman to pass through the full length of the strait.
Iran has not ratified UNCLOS (United Nations Convention on the Law of the Sea), and enacted its own maritime law in 1993 that requires warships and nuclear-powered ships to seek permission for innocent passage through Iranian territorial waters.
The strait's closure cannot be easily bypassed: the Saudi East-West Pipeline (to Yanbu) and the UAE's Abu Dhabi Crude Oil Pipeline (ADCOP, to Fujairah) can divert limited volumes, but not at the scale of Hormuz throughput.

Connection to this news: Iran's ability to disrupt Hormuz traffic stems directly from its territorial sovereignty over the northern shipping lane — a vulnerability that has been central to Gulf energy security planning for decades.

UNCLOS and the Right of Transit Passage

The United Nations Convention on the Law of the Sea (UNCLOS), adopted in 1982 and entering into force in 1994, is the principal international legal framework governing rights and obligations in maritime zones. For international straits used for navigation, UNCLOS establishes the right of "transit passage" — a non-suspendable right for ships and aircraft to pass through straits connecting one area of high seas (or EEZ) to another.

Transit passage (Article 38, UNCLOS) differs from "innocent passage" in that it cannot be suspended by the coastal state, and applies to both surface ships and submarines (which may remain submerged).
The Strait of Hormuz falls under transit passage provisions as it connects the high seas of the Gulf of Oman to the semi-enclosed Persian Gulf.
Iran's non-ratification of UNCLOS creates a legal grey zone: Iran claims the right to regulate passage, while most maritime nations assert the customary international law right of transit passage.
The US has also not ratified UNCLOS but recognises transit passage rights as customary international law.

Connection to this news: The legal dispute over whether Iran can lawfully close or condition passage through the strait underpins the diplomatic standoff — Iran asserts sovereign control, while the US and its allies assert an unconditional right of transit passage.

Energy Chokepoints and Global Oil Security

An energy chokepoint is a narrow geographic passage through which a significant volume of global energy supply must pass, making it a critical vulnerability in the international oil and gas supply chain. The concept of chokepoint risk is central to the International Energy Agency (IEA) and individual country energy security planning.

World's major oil chokepoints: Strait of Hormuz (20 mb/d), Strait of Malacca (~16 mb/d, critical for Asian importers including India, China, Japan), Suez Canal/SUMED Pipeline (~10 mb/d), Bab-el-Mandeb (~7 mb/d).
The IEA, founded in 1974 after the Arab Oil Embargo, coordinates emergency oil release from Strategic Petroleum Reserves (SPRs) of member countries during supply disruptions; India joined the IEA as an Associate in 2017.
India maintains a Strategic Petroleum Reserve (SPR): three underground caverns at Visakhapatnam, Mangaluru, and Padur with a combined capacity of 5.33 million metric tonnes (approximately 13–14 days of net import cover).

Connection to this news: The Hormuz closure is precisely the scenario for which SPRs and energy diversification strategies are designed, but the scale and duration of this blockade exceed short-term buffer capacities for heavily import-dependent nations.

West Asia Conflict and India's Strategic Equidistance

India maintains a policy of strategic autonomy in the West Asia region, balancing ties with Iran (a historic partner and the Chabahar Port development partner), Gulf Arab states (home to ~9 million Indian diaspora and major oil suppliers), Israel (a key defence and technology partner), and the United States.

India–Iran: India developed Shahid Beheshti Terminal at Chabahar Port under a 10-year lease agreement (2024), providing access to Afghanistan and Central Asia via the International North-South Transport Corridor (INSTC), bypassing Pakistan.
India–Gulf Arabs: India is among the top importers of crude oil from Iraq, Saudi Arabia, and the UAE. The Gulf hosts the largest Indian diaspora globally; remittances from the Gulf account for a significant share of India's total inward remittances (approximately USD 30 billion annually).
India traditionally abstains or calls for diplomatic resolution at international forums on West Asia conflicts, maintaining a "calibrated equidistance" to protect multiple strategic interests simultaneously.

Connection to this news: India faces acute economic exposure to the Hormuz crisis through energy prices, diaspora welfare, and remittance flows, while diplomatic pressure to take sides risks alienating one or more of its key partners in the region.

Key Facts & Data

Strait of Hormuz width: 29 nautical miles (54 km) at narrowest; navigable channels: 2 miles each way.
Oil transit (2025): ~20 million barrels per day = ~20–25% of global seaborne oil trade.
LNG transit: ~one-fifth of global LNG trade (2022 data).
Brent crude in late April 2026: ~USD 108/bbl, up ~50% from conflict start; peaked above USD 110/bbl.
US naval blockade of Iranian ports: effective April 13, 2026.
Iran closed Hormuz: approximately February 28, 2026.
UNCLOS adopted: 1982; in force: 1994; transit passage right: Article 38.
Iran's 1993 maritime law: conflicts with UNCLOS on innocent passage requirements for warships.
India's SPR capacity: 5.33 MMT across Visakhapatnam, Mangaluru, Padur (~13–14 days of import cover).
India joined IEA as Associate Member: 2017.
Indian diaspora in Gulf: approximately 9 million persons.