Trump Rejects Iran's Hormuz Reopening Offer as Araghchi Warns of 'Doomsday' War but Leaves Door Open

President Donald Trump has rejected an Iranian proposal to reopen the Strait of Hormuz, even as Iranian Foreign Minister Abbas Araghchi says Tehran remains prepared for renewed war while insisting diplomacy has not been exhausted. The exchange, detailed over the weekend by NBC News and CNBC, came as crude oil fell sharply on the week and Iran's Revolutionary Guard navy said it had captured a U.S. underwater drone in the strait.

What Trump Rejected

Trump told reporters Saturday he had turned down Iran's offer, saying, "I rejected their deal. They want to make a deal where they open the strait immediately because they're losing so badly," according to NBC News. The Iranian plan, put forward Friday and conveyed to Washington through mediator Qatar on the sidelines of the United Nations General Assembly in New York, would have reopened the Strait of Hormuz and resumed normal maritime passage, along with restarting nuclear talks, within seven days if the U.S. accepted Tehran's conditions, per NBC News and CNBC.

Those conditions, according to Iranian foreign ministry spokesman Esmaeil Baghaei, include a halt to what Tehran calls U.S. "acts of aggression," an end to the naval blockade and economic warfare, and the release of frozen Iranian assets, CNBC reported. Araghchi told NBC News' "Meet the Press" that the terms were "not new," pointing to a memorandum of understanding the two countries signed in June that laid out a temporary ceasefire before collapsing within days after fresh strikes were exchanged.

U.S. Ambassador to the United Nations Mike Waltz called the offer "a pretty cynical attempt to put something on the table that they knew was unacceptable, to ask for the release of the blockade, the sanctions, international sanctions, and access to billions in assets," NBC News reported. Waltz declined to outline what terms Trump would accept, saying "I'm not going to negotiate for the president," while adding that Trump "will leave all options on the table to ensure the world is safe from Iran holding the world hostage with a nuclear weapon." He also questioned "who's calling the shots in Iran right now," arguing Tehran had violated the prior memorandum by attacking international shipping.

Araghchi's 'Doomsday' Warning

Speaking to NBC News' Kristen Welker on Sunday, Araghchi said Iran is ready to resume fighting: "We are fully prepared for the war to be resumed. We stand firm in the face of any new aggression, even if it comes to a doomsday war." He added that Tehran has not closed the door on talks: "At the same time, we stand ready for diplomacy. It is up to President Trump to choose."

Araghchi said Trump's public rejection had still not been formally relayed to Iran through mediators, telling NBC News, "Only a negotiated solution can break this deadlock." In a Telegram post translated by Google and cited by CNBC, he said Iran's terms are non-negotiable: "Our conditions are clear; any progress toward the opening of the Strait of Hormuz is contingent upon the fulfillment of these conditions, and we will not back down from them." Iranian army commander-in-chief Amir Hatami was quoted by the Iranian Student News Agency, via CNBC, as saying "The war is not over," framing the conflict so far as an Iranian win that needs consolidating.

The Wall Street Journal reported, and CNBC and NBC News both cited, that Trump said he expected to resume bombing Tehran after the U.S. midterm elections in November. Earlier in the week Trump told reporters he was weighing whether to "annihilate" Iran or reach a deal, predicting, "I believe we'll make a deal right after the election because it doesn't make sense for them not to. They're waiting to see how I do in the midterm election." Araghchi dismissed that framing to NBC News: "We don't care about U.S. midterm elections. We care about our national interests."

Seeking Alpha reported separately that Trump expects more U.S.-Iran talks this week, though major disagreements persist over the U.S. blockade, Iranian nuclear concessions and the reopening of the Strait of Hormuz. Neither Seeking Alpha, CNBC nor NBC News specified a date, level or venue for a next round of talks.

Captured Drone Adds Friction

Iran's Islamic Revolutionary Guard Corps navy said Sunday it had captured an advanced U.S. unmanned underwater vehicle in the Strait of Hormuz. The Tasnim News Agency, quoting the IRGC in a Telegram post cited by CNBC, described the vehicle as a Remus 600 that has been handed to specialists for data recovery. Neither CNBC nor NBC News reported U.S. confirmation of the incident, and the account rests on the IRGC's own statement.

Oil Slides as Talks Continue

Crude settled lower Friday and posted a sharp weekly drop as Tehran and Washington held discussions on the sidelines of the U.N. General Assembly, CNBC reported. West Texas Intermediate fell 2.3% to close at $92.41 a barrel, while Brent, the international benchmark, declined 2.1% to settle at $104.32. For the week, U.S. crude finished 7.9% lower while Brent was flat, per CNBC. Using those reported settlements, Friday's WTI price sat $11.91 below Brent, or about 11.4% lower ((92.41 − 104.32) ÷ 104.32 × 100). Year to date, CNBC reported WTI up nearly 61% and Brent more than 71% higher — gains CNBC linked to Iran's restriction of oil and gas exports out of the Persian Gulf during a conflict that began Feb. 28 with U.S. and Israeli air strikes on Iran and has run on-again, off-again since, spiking gas prices and fanning inflation.

Political Backdrop

Domestic politics are shadowing the standoff. The latest NBC News Decision Desk Poll found 31% of respondents approved of Trump's handling of the Iran war while 69% disapproved, a 38-point gap by NBC News' own figures, with polling cited by NBC News showing Democrats holding an advantage heading into the November midterms.

Bottom Line

Tehran has put a time-bound offer on the table to reopen Hormuz, and Washington has rejected it as insufficient, yet both sides still point toward talks: Araghchi says Iran stands ready for diplomacy and that "only a negotiated solution can break this deadlock," while Seeking Alpha reported Trump expects more U.S.-Iran discussions this week. None of the cited reports set a date, level or venue. One interpretation of last week's slide in crude — an interpretation, not a reported market judgment — is that traders priced in some easing of supply risk around the U.N. sidelines discussions; even so, CNBC's reported year-to-date gains of nearly 61% for WTI and more than 71% for Brent suggest the conflict's price imprint has not been erased.