Iran offers to reopen Strait of Hormuz despite postponing US nuclear talks
Questions remain if President Donald Trump will agree to the proposed peace deal as he wanted Iran to end its atomic program
Iran is offering to end its chokehold on the Strait of Hormuz without a nuclear deal as oil prices hit a near three-week high.
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Iran's foreign minister visited Russia last week as an opportunity to consult Moscow on the war against Israel and the US.
Iran wants the US to end the blockade of the Strait as part of the peace process - but has failed to mention its nuclear capability in the proposal.
Proposals have been passed to the United States by Pakistan on the condition of anonymity and closed-door negotiations.
Questions remain whether President Donald Trump will agree to the deal as he wanted Iran to end its atomic program.
"We have all the cards. If they want to talk, they can come to us, or they can call us," Mr Trump told the Fox News Channel.
Ceasefire talks appeared increasingly fragile, as Mr Trump declared over the weekend that envoys from Washington would no longer be travelling to Islamabad in Pakistan because of a lack of progress with Iran.
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He indefinitely extended the ceasefire between the US and Iran, which was agreed on April 7, which has largely halted the fighting that began with joint US and Israeli strikes on February 28.
But a permanent resolution has yet to be agreed and the crucial Strait of Hormuz, through which a fifth of the world’s oil supplies are carried, remains effectively blocked.
Oil prices have hit a near three-week high as the cost of benchmark Brent crude continued its ascent, rising 2 per cent to just under 108 US dollars a barrel in early morning trading on Monday, rising back up to levels seen before the first round of peace talks began in early April.
Oil prices fell below 87 dollars a barrel in mid-April when both sides said the waterway was back open for commercial tankers, but the Strait was soon impassable once more as talks faltered, sending crude soaring back up.
Susannah Streeter, chief investment strategist at Wealth Club, said: “The president said negotiators would be wasting their time heading to Pakistan and the lack of progress has hit sentiment at the start of the week.
“But some hopes of a resolution are being kept alive, with reports that Iran has put another proposal on the table which aimed at de-escalating the conflict and potentially seeing the key Strait of Hormuz reopen.
“Details are scant about the offer and patience on both sides is clearly frayed.”
The FTSE 100 Index was 11.64 points lower at 10367.44 in early trade.