Bloomberg (via Yahoo Finance) | Fri, May 1, 2026 at 6:12 AM PDT

Iran delivered a new proposal to the US and President Donald Trump vowed to maintain a naval blockade, as the two sides pursue behind-the-scenes diplomacy to turn a fragile ceasefire into a lasting peace.

Tehran relayed its latest position to Washington via Pakistan, which mediated a first round of direct negotiations last month, Iran's state-run Islamic Republic News Agency said on Friday.

The fate of the Strait of Hormuz — through which about a fifth of the world's oil and liquefied natural gas flowed before the war — lies at the heart of the current stalemate. Both Iran and the US have signaled they are waiting for the other to move first before they agree to ease restrictions on traffic.

IRNA didn't elaborate on what the Iranian proposal entailed on key issues such as Hormuz or Iran's nuclear activities.

Trump said on Thursday that the blockade of Iranian ports is depriving the Islamic Republic of much-needed oil revenue, claiming the pressure would force Tehran back to the negotiating table.

"Brent traded 3% lower at around $110 a barrel on Friday, trimming this week's gains to just over 5%."

Trump was briefed at the White House on Thursday by the head of US Central Command, which oversees American forces in the Middle East, and Dan Caine, the chairman of the Joint Chiefs of Staff. Centcom had prepared a plan for a brief wave of strikes to break the negotiating deadlock.

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