Iran Reviews U.S. Peace Proposal as Hormuz Standoff Rattles Oil Markets

CNBC reported Thursday that Iran is actively studying Washington’s latest terms for ending the ongoing war, even as President Donald Trump cautioned that patience has a limit.

Iran Foreign Ministry spokesperson Esmaeil Baghaei confirmed his government had received the American position and was working through its contents. He added that Pakistan remains the active go-between connecting Tehran and Washington, with multiple rounds of communication already completed under Iran’s original 14-point framework.

Talks Advance Slowly as Both Sides Hold Firm

Pakistan’s Army Chief General Asim Munir was expected to travel to Tehran on Thursday to continue mediation efforts, according to Iranian state media. The visit underscores Islamabad’s central role since hosting direct U.S.-Iran talks last month.

Despite that diplomatic activity, meaningful progress has remained elusive. Iran continues to block the Strait of Hormuz, the narrow waterway that once carried roughly a fifth of global oil and liquefied natural gas. Washington has maintained a blockade on Iranian ports in response. Shipping traffic through the strait has effectively stopped since U.S. and Israeli-led strikes began in late February.

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A Pattern of Warnings and Delays

Speaking to reporters at Joint Base Andrews on Wednesday, Trump said the window for diplomacy is narrowing. He warned that without satisfactory answers from Tehran, the U.S. is “ready to go” and action could come within days. He also disclosed he had been roughly an hour from ordering a new strike on Tuesday before standing down.

Trump has issued similar ultimatums before without following through, a pattern that has given both markets and diplomats reason to treat his deadlines cautiously. Iran’s Revolutionary Guard matched the rhetoric, warning in a statement Wednesday that resuming strikes would prompt an escalation reaching beyond the existing theater of conflict.

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Oil Markets React as Traders Watch Every Headline

Energy traders pushed prices higher Thursday morning as they tracked the diplomatic back-and-forth. International Brent crude rose 1.3% to around $106 per barrel, clawing back some of the prior session’s losses. U.S. West Texas Intermediate moved in tandem, gaining 1.3% to just under $100 per barrel. Both benchmarks remain sharply elevated relative to pre-conflict levels, reflecting the sustained disruption to Hormuz traffic and the absence of any credible near-term resolution.

The next signal will likely come from Munir’s Tehran visit and whether Iran submits a formal response to the U.S. position in the coming days.

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