The proposal reportedly ties into the phased reopening of the Strait of Hormuz, a key global shipping route Iran has threatened before. Tehran's government said it is now reviewing the U.S. Response, though no timeline for a decision has been given.

The diplomatic back-and-forth comes even as tensions stay sharp on the ground. A spokesperson for Iran's Revolutionary Guard Corps said Tuesday that the conflict with the U.S. Will only end if Washington "admits defeat" and pulls forces from the region. Iran's military also published a public letter Tuesday urging American citizens to protest against Trump, accusing his administration of wrongdoing.

The mixed signals, talks on one hand, hardline rhetoric on the other, leave the outcome murky for anyone watching global oil markets and shipping routes. A closed or restricted strait would ripple through energy prices worldwide, while a real ceasefire could ease months of military standoff between the two countries.