Iran Reviews U.S. Peace Proposal as Hormuz Standoff Drags On

Iran confirmed Thursday that it is actively studying Washington’s latest position on ending the war, CNBC reported, as President Donald Trump signalled he was prepared to give Tehran only a narrow window to respond before the situation escalates.

Tehran Studies the American Position

Iranian Foreign Ministry spokesperson Esmaeil Baghaei told state media the country had received the American side’s views and was currently working through them. He confirmed that Pakistan, which hosted preliminary negotiations between Washington and Tehran last month, is still acting as a go-between. Several rounds of communication have already taken place, Baghaei noted, framed against Iran’s original 14-point framework for any prospective agreement.

Pakistan’s Army Chief General Asim Munir was expected to travel to Tehran on Thursday, according to Iranian state media, underlining Islamabad’s continued role as a mediator in what has become one of the most consequential diplomatic standoffs in years.

Background: A War That Has Frozen Global Energy Flows

The conflict traces its hot phase to late February, when U.S. and Israeli-led strikes against Iran began. Tehran subsequently moved to block the Strait of Hormuz, the narrow waterway that carried roughly 20% of the world’s oil and liquefied natural gas before hostilities erupted. Washington responded with a blockade of Iranian ports. Shipping traffic through the strait has since ground to a near halt, straining global energy supply chains and pushing crude prices sharply higher.

Also Read: Oil Markets Brace for Prolonged Hormuz Disruption

Trump Holds Threat in Reserve

Speaking to reporters at Joint Base Andrews on Wednesday, Trump said the U.S. was fully prepared to act swiftly if satisfactory answers were not forthcoming. He put the timeline at potentially just a few days. The president has issued similar ultimatums before, including one instance where he reportedly came within an hour of ordering a fresh strike before holding back at the last moment.

Iran’s Revolutionary Guard issued its own sharp warning this week, threatening to widen the conflict beyond the Middle East region if American and Israeli strikes resume.

Oil Markets React

Energy traders are watching the diplomatic back-and-forth closely. Brent crude futures climbed roughly 1.3% on Thursday morning to trade above $106 per barrel. U.S. West Texas Intermediate moved in tandem, recovering toward the $100 mark after briefly slipping below that psychologically significant level earlier in the week.

Also Read: How the Strait of Hormuz Became the World’s Most Dangerous Chokepoint

A UAE-backed pipeline that would bypass the Strait of Hormuz entirely is reportedly nearing the halfway point of construction, though analysts say completion remains some time away.

Read Next: Trump’s Middle East Policy and the Markets Caught in the Crossfire