Trump rejects Iran’s Strait of Hormuz offer as US tightens bank and airline squeeze
By Aboki Forex —
US President Donald Trump has rejected an offer from Iran to reopen the Strait of Hormuz, as Washington intensifies economic pressure on Tehran with measures targeting banks and airlines.
Trump disclosed the decision on Saturday, September 26, while speaking to reporters as he departed the White House. He said Iran had proposed a deal that would lead to the immediate reopening of the strategic waterway.
Trump says Iran acting under pressure
Trump said he rejected the proposal because Iran was seeking the agreement under mounting economic and military pressure. “They made a proposal but I rejected it,” he said. “They want to make a deal where they open the strait immediately because they’re losing so badly.”
The Strait of Hormuz remains central to the conflict because of its importance to global energy and shipping flows. Iran’s proposal reportedly envisaged reopening the waterway within seven days under conditions involving reduced US military and economic pressure.
The development comes amid continued tensions in the region and fresh attacks by Yemen’s Houthis on Saudi Arabia. Treasury Secretary Scott Bessent said the pressure is beginning to produce results.
Banks and airlines cut Iran links
Bessent, in a post on X on Saturday, said the Trump administration’s Operation Economic Outcast had expanded efforts to restrict Iran’s access to international finance and aviation services. “Türkiye and Oman announced the cessation of Mahan Air flights to their countries. The UAE has halted all flights by Iranian airlines, and top commercial banks in the UAE and Türkiye have stopped transacting with Iran.”
He added that the US would continue working with the United Kingdom, Türkiye, Oman and the United Arab Emirates to increase economic pressure on Tehran. More action was needed to counter what he described as Iran’s “terrorist agenda.”
The latest move follows an escalation announced in August. On August 20, Trump announced what he described as ‘economic warfare’ against Iran, warning countries, businesses and financial institutions that continue providing economic support to Tehran that they could face consequences from Washington. He called for an end to oil smuggling, financial swap arrangements, cash transfers, exchange-house transactions, ship registrations and the use of front companies to support Iran’s economy. Treasury subsequently launched Operation Economic Outcast.
Oil prices and Nigeria fuel risk
The confrontation over the Strait of Hormuz is also putting pressure on global oil prices as traders assess the risk of disruptions to crude and petroleum product shipments. On Thursday, Brent crude rose by more than 3% to a session high above $106 per barrel, while West Texas Intermediate traded around $94 per barrel.
The rise followed renewed concerns about the security of energy and shipping routes. The wider Indian Ocean region is also important to global trade because large volumes of containerised cargo and energy shipments move through its shipping routes. Any prolonged disruption around Hormuz could increase transportation costs and add a risk premium to crude prices.
For Nigeria, a sustained increase in international crude prices could translate into higher petrol costs, especially because domestic fuel pricing remains exposed to movements in crude and refined-product prices. Recent industry data already showed this relationship. As crude prices moved above $100 per barrel, petrol prices in Nigeria rose to around N1,400 to N1,450 per litre in several markets, while estimated petrol import-parity costs also increased.