Iran Rejects Report That Deal Is ‘Close’ After Qatar, Pakistan Push ‘Compromise Proposal’ To End War

Update(1117ET): The somewhat expected quick rejection is coming from the Iranians via newswires:

IRAN-US TALKS CONTINUE, REPORTS DEAL IS CLOSE ARE WRONG

And Israeli media: “At least once, the US Trump administration was ‘very close’ to approving an attack on Iran” i24 Stein’s reports citing sources. Oil bouncing back on the Iranian rejection headlines, and despite…

RUBIO: OIL GOING THROUGH HORMUZ NEARLY EQUAL TO BEFORE WAR

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Update(1035ET): This past weekend Iranian Foreign Minister Abbas Araqchi said that his country’s offer to the United States to reopen the Strait of Hormuz within seven days is still on the table. 

By Tuesday morning, we have a return of another round of ‘deal imminent’-style headlines, which has gained more visibility over the last couple hours, resulting in oil prices tumbling:

• Mediation efforts said that “Qatar and Pakistan presented a ‘compromise proposal’ that meets the demands of both the American and Iranian sides”, Al Araby Al Jadeed reports citing sources.
• Another bout of pressure in the crude complex as the earlier reports via Al Araby Al Jadeed related to a “compromise proposal” gets wider airing; a move which is lifting the ES

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On Tuesday the UK Maritime Operations Centre has reported a new incident around 121 nautical miles east of the Omani coast.

The UKMTO announced the vessel was “subject to interaction as part of ongoing military activity in the region” at around 10am GMT. Regional reports say two tankers are on fire. But Tehran is boasting of a fresh sea mine attack, amid daily ramped-up assaults on international shipping as it tries to hold on to leverage over the United States and global oil transit.

The Iranian side filled in more information, with the Islamic Revolutionary Guard Corps (IRGC) describing that “Two violating oil tankers were set ablaze and halted due to the explosion of mines planted by the brave sailors of the IRGC Navy at an illegal crossing point in the southern part of the Strait of Hormuz,” according to a statement published on their official Sepah News website.

Those conditions were first presented in mid-September. “Our situation is clear and based on ⁠the seven-days proposal presented to the US. They shared comments which we are reviewing, but our proposal is still on the table and if there is any honesty on the US part, which there isn’t, the way to reopening the Strait of Hormuz is obvious,” Araqchi stated Sunday.

For anyone who has lost track, these are the seven conditions Tehran presented in September:

1. lift the maritime blockade;
2. restore Iran’s frozen assets;
3. lift sanctions on Iranian oil exports;
4. halt all US actions “under the pretext of threats and military operations”;
5. end the war on Iran and its regional allies;
6. withdraw US forces from areas around Iran’s borders;
7. pay compensation for war damage and commit not to interfere with Iran’s nuclear and missile capabilities.

According to more of the latest from Bloomberg Tuesday morning:

Brent oil fluctuated near a five-month high as traders weighed the risk of further Iranian attacks in the Strait of Hormuz against robust crude flows from the Persian Gulf. The global benchmark was just below US$110 a barrel, near the highest since May, while the most-active West Texas Intermediate contract was close to US$99.

Iran has “no choice” but to assert control over Hormuz to safeguard the country’s security, First Vice-President Mohammad Reza Aref said on Oct 19, according to a report from state-run news agency IRNA.

Meanwhile, other Tehran officials have continued to warn that if active fighting resumes, Iran’s military still has a lot of cards to play.

At the start of this week IRGC spokesperson Hossein Mohebi has threatened to target undersea communication cables in the Strait of Hormuz. He warned that “all of the world’s internet and commercial data depend on them,” according to Al Jazeera.

🚨🇮🇷🇴🇲 A tanker had an encounter with military forces off the coast of Oman yesterday… The vessel was subject to interaction as part of ongoing military activity in the region. Authorities are aware and investigations continue. Ships have been advised to stay alert to the evolving security situation, as always. Source: UKMTO / Writer: Samuel

— Mario Nawfal (@MarioNawfal) October 20, 2026

He added: “We just want them to know that new targets and new weapons will be unveiled.”

Mohebi has also claimed that the US lacks the “technical and military”” capability to launch a new operation, which President Trump has lately threatened, likely to resume after the November midterm elections. So far the US military has remained surprisingly quiet amid daily Iranian assaults on international shipping.

More Latest Developments

via Newsquawk…

• US President Trump criticised Europe for failing to support the US over Iran and suggested Washington could reconsider its support for Europe.
• Iran’s IRGC said it intercepted and destroyed a US MQ-9 drone over the Strait of Hormuz using its new advanced air defence system.
• Iranian Foreign Ministry Spokesperson Baghaei said they have held several contacts and consultations and that if there is even the slightest chance that it may be able to prevent the escalation of tensions through diplomacy, they must definitely go this route. On talks with Russia, Baghaei said there was no discussion about nuclear negotiations with the US, and that Iran are not negotiating with the US in this regard.
• Iranian Foreign Ministry said the US’ response to the proposal from Iran was incomplete and insufficient.
• Iranian President Pezeshkian said US bases in the region provide no benefits and only fuel insecurity, Press TV reported.
• Iranian Foreign Minister Araghchi said Iran-Russia cooperation is closer than ever, with talks covering regional developments and expanding economic and nuclear cooperation, IRNA reported.
• Qatari Foreign Ministry spokesperson said “We are working with Washington and Tehran in partnership with other mediating countries to end the war in the region.”
• Pakistan Army Chief Munir has arrived in Tehran to meet with senior officials of Iran.
• Russian Foreign Minister met Iran’s President and Supreme National Security Council Secretary in Tehran, following earlier talks with his Iranian counterpart, Iran Nuances reported.
• An explosion was reportedly heard in Iran’s southern city of Bandar Abbas, Sabereen News reported.
• Yemeni forces reportedly targeted Saudi Arabia’s Dammam airport with missiles and drones, temporarily suspending operations, Tasnim reported, citing Al-Masirah.
• Israeli PM Netanyahu said there are indications that Iran and its proxies want to challenge Israel before the elections.
• US War Secretary Hegseth met Israeli PM Netanyahu during an unannounced visit to Israel on Monday, Axios reported.
• US President Trump’s envoys Kushner and Witkoff plan to travel to Norway this week for Ukraine talks and Ukraine President Zelensky is expected to join talks.
• Ukrainian President Zelensky said he talked with US Secretary of State Rubio on the topics of ballistic interceptors and Starlinks. He later said that Ukraine supports a mutual energy ceasefire.
• Ukraine’s DTEK said a Russian attack struck three of its energy facilities in the Odessa region.
• The Trump administration has delayed approving transfers of Patriot interceptor missiles to Ukraine from partner countries, Washington Post reported.