TEHRAN/WASHINGTON: Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani on Monday discussed Iran's proposal with US President Donald Trump under which Washington would lift its naval and economic blockade of Iran and release $8 billion in frozen Iranian funds in exchange for Tehran reopening the Strait of Hormuz.
Iran has signed off on the Qatari-brokered terms, according to two diplomatic sources who spoke to Israeli media. According to the Israeli media, the US and Iran are considering an $8 billion agreement to reopen the Strait of Hormuz.
Under the reported proposal, the US would immediately lift the naval blockade on Iran in the Strait of Hormuz and release a portion of the $8bn (£6bn) of its frozen assets. In return, Iran would agree to visits by International Atomic Energy Agency (IAEA) inspectors to its bombed nuclear facilities, based on a previous abandoned agreement that had been reached in Cairo in September 2025.
Iran would open the Strait of Hormuz on the second day, via a route it has already negotiated with Oman that they would jointly lodge with the International Maritime Organisation (IMO). Neither government has confirmed the terms, and Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, Secretary of State Marco Rubio and Secretary of War Pete Hegseth reportedly oppose a deal along these lines.
The Qatari mediators - together with other regional players such as Pakistan, Saudi Arabia, Egypt and Turkiye - continued discussions with the Iranians and the White House about a draft proposal calling for a series of steps over two days to build mutual confidence toward a broader deal.
A similar US-Iran memorandum reached in Switzerland in May collapsed after an Iranian attack on oil tankers in the strait. Sheikh Mohammed bin Abdulrahman Al Thani's meeting with Trump came as Qatar continues to lead mediation efforts to end the nine-month war.
Vice President JD Vance was also scheduled to meet with the Qatari leader, according to a US official. US President Donald Trump stated that there is "positive momentum" towards a deal to end the Iran war following a high-profile meeting with Qatar's Prime Minister, Sheikh Mohammed bin Abdulrahman Al Thani, at the White House.
In a post on Truth Social following their discussions, Trump noted that a resumption of US military strikes on Iran was "quite unlikely," adding that key Gulf powers prefer to maintain the regional status quo. "I had an excellent conversation with the Prime Minister of Qatar," Trump said, addressing the diplomatic developments.
"Much was discussed with respect to Iran. Right now, we're seeing momentum toward the end of this conflict, and military action doesn't seem to be necessary." However, the President issued a stern warning that American military readiness remains absolute.
"Should there be any change with respect to developments in the Middle East, the United States of America is 'locked and loaded' and ready to go," Trump stated, adding that partners including Qatar, Saudi Arabia, the UAE, Bahrain, and Kuwait strongly favor stability.