The White House said on Monday that it was examining Iran's latest proposal to unblock the Strait of Hormuz, two months after a US and Israeli offensive sent shockwaves through the global economy.
Peace talks between the United States and Iran to end the Middle East war and fully reopen the vital strait have so far proven inconclusive since a ceasefire came into force.
Trump met with top security advisors on Monday to discuss an Iranian proposal after Tehran passed "written messages" to Washington via Pakistan, spelling out its red lines in negotiations, including on nuclear issues and the Strait of Hormuz, the Fars news agency reported.
The proposal was "being discussed," spokeswoman Karoline Leavitt told a White House briefing.
Asked about the terms of Iran's proposal, Secretary of State Marco Rubio told Fox News "it's better than what we thought they were going to submit," but questioned whether it was genuine.
"We have to ensure that any deal that is made, any agreement that is made, is one that definitively prevents them from sprinting towards a nuclear weapon at any point," he said.
Iran's top diplomat blamed Washington on Monday for the failure of peace talks during a visit to Russia, where President Vladimir Putin promised him Moscow's support in ending the war.
"The US approaches caused the previous round of negotiations, despite progress, to fail to reach its goals because of the excessive demands," Iranian Foreign Minister Abbas Araghchi said.
Araghchi was in Saint Petersburg after visiting Oman and Pakistan, the main mediator in the Middle East war.
Islamabad had hosted a first, unsuccessful round of US-Iran talks, and Araghchi's visit had raised hopes for more negotiations over the weekend.
But US President Donald Trump scrapped a planned trip by his envoys Steve Witkoff and Jared Kushner.
Trump told Fox News if Iran wanted talks, "they can call us" -- adding the cancellation does not signal a return to hostilities.
Tehran would first need guarantees Washington and Israel would not attack again if it was to offer security assurances in the Gulf, Iran's envoy to the UN said.
Meanwhile in Saint Petersburg, Putin and Araghchi both voiced their commitment to their countries' "strategic relationship" following their meeting.
Araghchi said the war, which began when the United States and Israel attacked Iran on February 28, showed "Iran's true power" and stability.
But back home in Tehran, the mood was more sober.
"Everything in the country is up in the air right now. I have not worked for a long time," small business owner Farshad told Paris-based AFP journalists.
"The country is in complete economic collapse."
- Feeling the pinch -
Though the US-Iranian ceasefire holds, the war's economic shock waves continue to reverberate.
Tehran resident Shervin, a photographer, said he was feeling the pinch.
"It is the first time that I have reached a point where I was late on my rent. I still don't have any projects," said Shervin, 42.
Iran has blockaded Hormuz, cutting off flows of oil, gas and fertilizer and sending prices soaring.
In response, the United States has imposed a blockade of Iranian ports.
Trump faces domestic pressure to find an off-ramp as fuel prices rise, with midterm elections due in November and polls showing the war is unpopular among Americans.
Iran's Revolutionary Guards say they have no intention of easing their market-rattling chokehold of the strategic waterway.
Ebrahim Azizi, head of the national security commission in Iran's parliament, said a proposed law for managing the strait would make the Islamic republic's armed forces the overseeing authority, with levies to be paid in Iranian rial.
The head of the UN's maritime agency, Arsenio Dominguez, said there was "no legal basis" for imposing transit fees.
Rubio also rejected the idea.
"They cannot normalize -- nor can we tolerate them trying to normalize -- a system in which the Iranians decide who gets to use an international waterway, and how much you have to pay them to use it," he told Fox News Channel's "America's Newsroom."
- 'Playing with fire' -
Violence has continued on the war's Lebanese front, despite a recently extended ceasefire between Israel and Iran-backed Hezbollah, with Beirut's health ministry reporting Israel killed four people in the south.
Fifty-one others were wounded, including three children, the ministry added.
Hezbollah drew Lebanon into the Middle East war by firing rockets at Israel, which responded with strikes and a ground invasion.
The group's leader Naim Qassem on Monday rejected planned direct negotiations between Lebanon and Israel as a "grave sin," vowing to "not back down."
Shortly afterwards, the Israeli military said it had begun hitting Hezbollah targets in Lebanon. Israel maintains that under the terms of the truce, it can act against imminent threats.
Israeli Prime Minister Benjamin Netanyahu said Hezbollah's rockets and drones remained a threat meriting military action.
Israeli Defense Minister Israel Katz warned that "Qassem is playing with fire."
Lebanese President Joseph Aoun, responding to Qassem, said his "goal is to reach an end to the state of war with Israel."
But Israeli army chief of staff Eyal Zamir said 2026 was "likely to be another year of fighting" for Israel on all fronts.
