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U.S. Imposes New Sanctions as Trump Weighs Iranian Peace Proposal

President Trump reviews a Pakistani-mediated offer to reopen the Strait of Hormuz as oil prices rise and fresh sanctions are imposed.

April 29, 2026 at 3:00 AM

The Trump administration has introduced a fresh round of sanctions against Iranian entities as the geopolitical standoff enters a critical phase. The move comes as President Trump and his national security team review a new diplomatic proposal relayed via Pakistan. The proposal reportedly suggests an immediate reopening of the Strait of Hormuz in exchange for deferring discussions on Iran's nuclear program. However, White House spokesperson Karoline Leavitt clarified that the President maintains strict 'red lines' against any agreement that would allow Iran to develop atomic weapons. On the economic front, oil prices have edged higher as the blockade of the Strait of Hormuz reaches its eighth week. Secretary of State Marco Rubio characterized the situation as Iran holding a fifth of the world's energy supply hostage, refers to the blockade as an 'economic nuclear weapon.' While some administration officials favor sustained economic pressure and blockades, others are reportedly concerned that the situation could devolve into a long-term, 'Cold War-like' war of attrition. President Trump claimed via social media that the Iranian leadership is facing internal instability and is in a 'state of collapse,' which he suggests is driving their urgency to reopen the shipping lanes. Despite the diplomatic back-channel activity, no military breakthroughs or formal agreements have been reached, and the U.S. remains positioned for continued sanctions and potential military escalations if red lines are crossed.

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