U.S.–Iran talks in New York stall over sequencing as Hormuz stays shut

NEW YORK — Indirect negotiations between the United States and Iran on the sidelines of the U.N. General Assembly ended the week without a breakthrough, leaving the Strait of Hormuz — one of the world's most important oil shipping lanes — still closed and energy markets on edge.

Qatar has acted as the main go-between, carrying proposals between the two delegations. Iranian Foreign Minister Abbas Araghchi left New York on Tuesday saying he expected a formal American answer to Tehran's latest offer by the end of the day.

Where the two sides split

The core dispute is about order. Iran's proposal would reopen the strait within about a week in return for sanctions relief, the release of roughly $12 billion in frozen assets and a wider regional ceasefire that includes Lebanon, with its nuclear program discussed afterward. The U.S. side has insisted on settling all open issues together, with the nuclear file at the center.

President Trump has reportedly rejected the Iranian offer and signaled that a deal is unlikely before the Nov. 3 midterm elections. Iranian officials, for their part, point to a memorandum of understanding from June that Washington later walked away from as evidence that any new promise could be reversed.

Why it matters at home

The standoff is feeding directly into American prices. Crude oil remains far above pre-conflict levels, and gasoline and energy costs were among the top worries cited by consumers in this month's confidence survey. Analysts note that flows out of the Persian Gulf have recovered to more than 90% of pre-war levels through other routes, which may give Washington more room to wait.

Markets reacted to every headline on Tuesday, with oil easing slightly on hopes that talks would continue after the election.