Iran Hormuz reopening plan: Trump extends ceasefire 2026

Why the Strait of Hormuz is back at the centre

Iran has sent a new proposal to the United States through Pakistani mediators as diplomatic efforts to end the ongoing conflict stall, Axios reported citing a US official and people familiar with the discussions. The plan is framed around a near-term goal: reopening the Strait of Hormuz and ending the current crisis around maritime access. Nuclear talks, according to the report, would be deferred to a later stage, after the strait is open and the US blockade is lifted. The proposal lands as the waterway remains described as “all but shut” in the broader reporting around the ceasefire deadline. The Strait of Hormuz matters far beyond the region because, before the war, about a fifth of all traded oil passed through it. With energy and shipping routes at stake, even incremental diplomatic moves have been closely watched by markets.

The new proposal Iran conveyed via Pakistan

Axios reported that Tehran’s plan prioritises de-escalation and the restoration of maritime flow through Hormuz before addressing the most contentious nuclear issues. The proposal was conveyed to Washington through Pakistani mediators, and the White House has received it, although it is unclear whether the US is willing to consider the approach. The outline, as reported, includes extending the ceasefire for a long period or moving to a permanent end to the war. It also states that nuclear negotiations would only begin after the strait is open and the blockade lifted. The sequencing is central to Iran’s pitch, effectively asking for relief on the maritime front before it engages on enrichment and stockpiles. The effort comes amid what Axios described as a deepening stalemate in negotiations.

US position: enrichment pause and stockpile removal

The US is seeking a suspension of Iran’s uranium enrichment for at least a decade and the removal of its enriched uranium stockpile from the country, according to the Axios report. Those demands cut to the core of the nuclear dispute and appear to be a key reason talks have not progressed. Separate reporting in the provided text also notes Trump saying that if a deal is reached, the US would move to take Iran’s enriched uranium, which Iran has refused in the past. Iranian officials have publicly pushed back on negotiating under threats. Iran’s parliament speaker Mohammad-Bagher Ghalibaf was cited saying: “We do not accept negotiations under the shadow of threats.” The same body of reporting also included a statement attributed to Elyas Hazrati that “Enrichment will continue in accordance with needs, and nothing will leave Iran,” while mentioning dilution as an option.

Internal divisions in Tehran complicate diplomacy

Axios cited sources saying there is no consensus within Iran’s leadership on how to respond to US demands. Iranian Foreign Minister Abbas Araghchi told Pakistani, Egyptian, Turkish and Qatari mediators over the weekend that decision-making in Tehran remains divided, the report said. That lack of internal alignment is important because it complicates Iran’s ability to submit what the US has described as a “unified proposal.” The emphasis on unity later appeared in Trump’s public framing of the ceasefire extension. The report also said Araghchi discussed the framework with regional mediators during engagements including in Islamabad, before continuing diplomatic outreach in the region. Taken together, the messages suggest Tehran is attempting to keep mediation channels active even as it delays nuclear discussions.

Trump extends the ceasefire as talks remain on hold

US President Donald Trump said he would extend the ceasefire with Iran as peace talks remain on hold, stepping back from threats to resume fighting even as the Strait of Hormuz remains close to shut. Trump wrote on Truth Social that he directed the US military to continue the blockade and “remain ready and able,” while extending the ceasefire until Iran submits a proposal and discussions are concluded “one way or the other.” The truce began just over two weeks ago, according to the report. Trump also said the blockade of Iranian ports would continue until Tehran presents a “unified proposal.” In the same stream of reporting, Trump claimed Pakistan asked the US to hold off on fresh strikes, while Tehran denied that was the case. Iran, as noted, had not publicly reacted to the extension at the time of the report.

Pakistan’s mediation role, and a cancelled US trip

Pakistan is described as the main mediator between the warring sides in the reporting provided. The White House confirmed that Vice President J.D. Vance’s planned trip to Pakistan for peace negotiations was cancelled “for now.” He had been expected to travel to Islamabad for the second time that month to help finalise an agreement with Iranian officials. Separately, Pakistan’s information minister Attaullah Tarar was cited saying a formal response from the Iranian side about confirming a delegation for Islamabad peace talks was still awaited, while noting mediators were in constant touch. The repeated references to Islamabad highlight how central Pakistan has become as a channel for messages between Washington and Tehran. Egypt and Turkey were also cited as part of a broader mediation effort.

White House response and Trump’s public messaging

The White House spokesperson Olivia Wales told Axios: “These are sensitive diplomatic discussions and the U.S. will not negotiate through the press.” She added that the US “holds the cards” and would only make a deal that puts Americans first, while “never allowing Iran to have a nuclear weapon,” according to the report. At the same time, Trump’s public comments and posts reflected both pressure and openness to talks. In the provided reporting, Trump also argued the US blockade is a “tremendous success,” and another segment cited severe economic pressure on Iran, including an estimated $1.5 billion daily loss in oil revenue due to the blockade. Trump’s tone also shifted at points between confidence about a deal and warnings of renewed strikes.

Market and energy implications tied to Hormuz

One report dated March 23, 2026 said Trump’s turnaround and deadline extension “served to drive down oil prices and jolt stocks.” The underlying driver is the centrality of Hormuz, through which roughly a fifth of traded oil passed before the war. The same report warned that conflict could threaten power plants and desalination facilities, raising broader infrastructure risks around the Gulf. For global markets, the status of Hormuz is often treated as a proxy for escalation risk in energy supply routes. In India, energy-sensitive sectors and freight-linked businesses tend to watch crude and shipping disruption signals closely, but the provided material does not quantify Indian market moves. What is clear from the reporting is that the blockade and the strait’s limited operations have become leverage points in the negotiation sequence.

Key facts at a glance

Why the sequencing dispute matters

Iran’s reported approach focuses on de-escalation and reopening the strait first, then moving to nuclear negotiations later. The US approach, as described by Axios, is anchored in nuclear constraints and removal of enriched uranium, alongside maintaining the blockade until Tehran presents a unified proposal. That mismatch makes the order of steps the main sticking point, not just the end-state. Meanwhile, Tehran’s internal divisions, as described by Araghchi to mediators, add uncertainty around what Iran can credibly commit to in any new document. The cancellation of a planned high-level US trip to Pakistan also suggests the next round of structured talks is not yet locked in.

Conclusion

Iran’s latest proposal, routed through Pakistan, seeks to reopen the Strait of Hormuz and extend or make permanent a ceasefire, while postponing nuclear negotiations. The US has maintained that enrichment must be suspended and stockpiles removed, and Trump has tied the continuation of the blockade to receiving a unified Iranian proposal. With a Situation Room meeting expected on Monday and mediation channels still active through Pakistan and other regional states, the next concrete step is whether Tehran submits a proposal that Washington is willing to take forward.