US President Donald Trump has denied reports that he offered Iran sanctions relief or the release of frozen funds as part of negotiations focused on reopening the Strait of Hormuz, following ongoing tensions in the Gulf region. The denial came amid evolving diplomatic efforts seeking to resolve disruptions caused by Iran’s effective blockade of the strategic waterway.
Trump refuted a report by Axios that suggested he was prepared to ease sanctions and release Iranian assets in return for concrete measures from Tehran concerning its nuclear program. “Axios just released a story that 'Trump' offered Sanctions Relief and Frozen Funds to Iran. This is untrue. It offered them NOTHING!” the president said in a message posted on Truth Social, labeling the report a “HOAX.”
Iranian Foreign Minister Abbas Araghchi confirmed that negotiations were now centered exclusively on reopening the Strait of Hormuz. Speaking late Monday, he indicated that Qatari intermediaries had conveyed proposals between Tehran and Washington and were awaiting a formal response from the US. “The current focus is solely on the Strait of Hormuz,” Araghchi said, noting that reopening the waterway depended on conditions Iran had communicated to the US.
The Strait of Hormuz, a vital global shipping route accounting for about one-fifth of the world’s oil and liquefied natural gas shipments, has been effectively blocked by Iran since regional hostilities escalated with US and Israeli strikes on February 28. The disruption has played a significant role in driving up global energy prices.
In a related development, the US has granted Iraqi airlines a sanctions waiver to operate flights transporting Iranian pilgrims to and from the holy Shiite city of Najaf in Iraq, according to an Iraqi government official and an airport source. This move reverses some restrictions imposed after US sanctions targeted Iran’s aviation sector. The exempted flights are expected to facilitate pilgrimages as well as allow students and patients to travel between the two countries.
Despite these diplomatic signals, tensions remain high. Iran’s parliament speaker and chief negotiator Mohammad Bagher Ghalibaf issued a stern warning that critical infrastructure across the Middle East could become targets if Iran’s security demands were not met. “In a region where we cannot sell oil, no one else will sell oil either; or if our security is not guaranteed, no infrastructure will remain safe,” he said on state television.
The two sides also provided conflicting assessments of the status of the Strait of Hormuz. Iran’s Revolutionary Guards rejected US claims that the waterway remains open, with spokesperson Hossein Mohebi stating that occasional covert shipments with transponders off do not constitute normal passage. He said a truly open strait would see at least 125 vessels passing daily, transporting a minimum of 20 million barrels of oil and petroleum products, a level far above current activity. Mohebi added that any vessel attempting transit faced risks of damage either from direct strikes or mines.
Qatar, which has served as a mediator in the talks, confirmed multiple meetings and message exchanges aimed at building consensus. Qatari foreign ministry spokesperson Majed Al Ansari emphasized that current efforts were focused on bridging differences. However, Trump has publicly rejected Iran’s broader conditions for reopening the strait, which include a seven-day ceasefire across the Middle East, unfreezing Iranian assets abroad, lifting sanctions on Iran’s oil sector, and an end to the US naval blockade of Iranian ports. Nevertheless, he acknowledged that talks were expected to continue in the near term.
As diplomatic initiatives unfold, Iran has increased its rhetoric threatening regional escalation, while the US appears to rely predominantly on economic measures rather than expanding military operations in the region.