U.S. and Iran discussions expected to restart despite rejected truce offer

UPDATE - follow-up to Iran stands firm on Hormuz plan after U.S. rejection: U.S. President Donald Trump expects negotiations with Iran to resume as early as Monday, September 28, 2026, despite rejecting a truce proposal brought by Iranian officials to the UN General Assembly in New York.

Rejection And New Talks

Mr. Trump told Axios that Tehran wants to make a deal but is offering terms that the U.S. might have accepted a year ago, stating that Iranian leaders overplayed their hand because they are losing badly. Sources familiar with the matter told Axios that indirect talks between Washington and Tehran could begin on Monday. Meanwhile, CBS News reported that Mr. Trump has not ruled out more military strikes before the November midterm elections, noting that he is always thinking about it.

The Truce Terms And Drone Seizure

Iran's plan included a seven-day truce, a stop to all hostilities in West Asia including Lebanon, and the reopening of the Strait of Hormuz shipping channel. The plan also demanded a return to conditions from an earlier failed ceasefire, which called for releasing frozen Iranian assets, lifting sanctions on Iranian oil, and ending the U.S. naval blockade. Foreign Minister Abbas Araghchi stated that Iran's conditions are clear and any move to reopen the strait depends on these terms being met. Adding to tensions on Sunday, Iran's Revolutionary Guards announced they seized an American underwater submersible drone in the Strait of Hormuz for espionage purposes, with spokesman Hossein Mohebi stating they will not stop punishing the U.S. until all seven conditions are met.

Reactions And Political Impact

U.S. Ambassador to the UN Mike Waltz accused Tehran of making a cynical attempt to demand billions in assets and the lifting of sanctions just to talk, adding that President Trump lacks confidence after a failed deal months ago. Democratic Representative Jim Himes of Connecticut warned on CBS that Iran has survived six months of U.S. and Israeli attacks and could influence the U.S. midterm elections by prompting attacks on shipping to raise oil and fuel prices.

Context

The Strait of Hormuz is a vital global energy chokepoint connecting the Persian Gulf to the open ocean, making any disruption there an immediate driver of international oil prices and shipping costs. The current military conflict began nearly seven months ago when U.S. and Israeli strikes targeted Iran, leading to ongoing naval confrontations and retaliatory bombings in the region.