Strait of Hormuz: Iran-US phased deal idea in 2026

What Iran is offering the US, according to Axios

Iran has conveyed a proposal to the United States that focuses first on reopening the Strait of Hormuz and moving toward ending the war, while pushing nuclear negotiations to a later stage, Axios reported. The plan was reportedly passed to Washington through Pakistani mediators after talks in Islamabad collapsed. The reported sequencing is designed to prioritise the maritime and ceasefire elements while deferring the most contested issue, Iran’s nuclear programme. A US official and two sources familiar with the discussions were cited in the report. Iran’s foreign minister Abbas Araghchi was involved in the outreach, with weekend diplomacy centred on the strait. No breakthrough has been announced so far.

How the backchannel moved through Pakistan and other mediators

The proposal was communicated via Pakistan, with the report also referencing mediators from Egypt, Turkey, and Qatar being involved in the broader effort. Axios said Araghchi discussed the idea of bypassing the nuclear issue during meetings in Islamabad. Another report said Araghchi held talks in Islamabad and Muscat, Oman, focusing on the strait. He then arrived in St Petersburg, Russia early Monday for talks with Russian President Vladimir Putin and other senior officials. The mediation effort is framed as an attempt to break a diplomatic stalemate. Pakistan’s military and Foreign Ministry declined to comment, according to Axios.

The phased sequencing: strait first, nuclear later

At the core of the reported proposal is a phased approach. The immediate priority would be reopening the Strait of Hormuz and addressing the US blockade, with a de-escalation pathway built around the ceasefire. Under this framework, the ceasefire would be extended for a long period or turned into a permanent cessation of hostilities. Only after the strait is reopened and restrictions are lifted would negotiations begin on the nuclear file. Axios described this as a way to accelerate an agreement by avoiding the most divisive issue at the outset. The plan is positioned as crisis management first, and nuclear bargaining later.

Why nuclear talks are the sticking point

Axios reported that Iran’s leadership is divided on what nuclear concessions it can offer, contributing to the impasse. One source said Araghchi told mediators there is no unified stance inside Iran’s leadership on how to meet US demands. The US demands cited include Iran halting uranium enrichment for at least ten years and exporting enriched uranium out of the country. Those conditions go to the heart of Iran’s nuclear posture, making them harder to settle quickly. The reported Iranian proposal seeks to “navigate around” those disagreements, at least temporarily. But it also creates a sequencing problem for Washington.

US leverage concerns and Trump’s stated objectives

Axios noted that reopening the strait and ending the war would reduce President Donald Trump’s leverage in later negotiations over Iran’s nuclear programme. The report said two key objectives for Trump include reducing Iran’s enriched uranium reserves and persuading Tehran to halt enrichment activities. Separate reporting cited Trump saying he has two conditions to end the two-month-long war with Iran, with the central point being that Iran cannot have a nuclear weapon. Trump also said on Fox News, “They know what has to be in the agreement.” The tension in the reported proposal is that it prioritises immediate de-escalation while postponing the nuclear constraints that Washington wants addressed.

White House response: proposal received, intent unclear

A White House spokesperson acknowledged the sensitivity of the talks and pushed back on negotiating publicly. “These are sensitive diplomatic discussions and the U.S. will not negotiate through the press,” White House spokesperson Olivia Wales told Axios. Wales added that the United States “holds the cards” and would only agree to a deal that prioritises the American people and ensures Iran never obtains a nuclear weapon. Axios and Anadolu Ajansi reported that the White House has received the proposal. But both reports said it remains unclear whether the Trump administration is willing to pursue it. A Situation Room meeting was expected Monday (April 27) with senior national security officials to discuss the deadlock and possible next steps.

Why the Strait of Hormuz matters to global energy flows

The Strait of Hormuz links the Persian Gulf to the Gulf of Oman. Around 20% of the world’s oil and liquefied natural gas passes through the strait, according to the report. That scale makes the waterway a key pressure point in any regional escalation involving maritime movement and port access. The reported proposal’s emphasis on reopening maritime traffic reflects the strait’s centrality to energy logistics. Another report described the closure as deepening a global energy crisis, underlining why reopening is being positioned as the first step. Any agreement that restores traffic would be closely watched by energy markets.

What this could mean for India-focused investors

For Indian markets, the Strait of Hormuz is a macro risk channel because of India’s reliance on imported crude and the knock-on effects on inflation, the rupee, and fuel-sensitive sectors. While the reports do not provide market pricing or sector performance data, they do lay out the trigger points investors tend to track: ceasefire durability, blockade and port restrictions, and confirmed reopening of the waterway. Newsflow around the Situation Room meeting (April 27) and subsequent responses from Washington and Tehran could shape expectations on de-escalation. Even without a nuclear track immediately, the sequence proposed by Iran places the strait and maritime access at the centre of near-term outcomes. Indian investors typically watch such developments for their potential to influence energy import costs and broader risk sentiment.

Key facts from the reports

What to watch next

The immediate signal to watch is whether Washington engages the reported phased sequencing or insists nuclear constraints be negotiated upfront. The second is whether mediators can restart formal talks after the reported collapse in Islamabad. Additional diplomacy is also underway, with Araghchi travelling to Russia for talks with President Vladimir Putin and other officials. Another variable is Iran’s internal consensus, which Axios cited as a constraint on nuclear concessions. Finally, the practical test of any near-term arrangement would be verifiable reopening of maritime traffic and clarity on blockade-related measures.

Conclusion

Iran’s reported proposal attempts to break the deadlock by separating the Strait of Hormuz crisis from nuclear negotiations, at least initially. The White House has acknowledged receipt, but has not indicated whether it will pursue the framework. With a Situation Room meeting expected on April 27, the next steps are likely to become clearer after US internal deliberations and further mediator outreach. Any confirmed movement on reopening the strait and extending the ceasefire would be closely tracked globally due to the strait’s role in energy flows.