'Positive and constructive' US-Iran talks continuing through mediators, including on nuclear issues: report

Despite President Donald Trump's rejection of Iran's proposal, “positive and constructive” US-Iran discussions were continuing through mediators, including on nuclear issues, Axios reported.

The report indicated that talks between Washington and Tehran are "still possible" despite Trump's "no", and saying Iran had “overplayed its hand”.

Qatar has emerged as the principal intermediary in the latest effort.

According to Axios, Qatar's prime minister met Iranian President Masoud Pezeshkian in New York last Thursday and discussed the potential deal with the Trump administration.

Senior Qatari officials subsequently met Witkoff and briefed him. Qatari mediators then discussed Iran's original proposal with both sides and reportedly produced a compromise proposal for Washington and Tehran to consider.

Over the weekend, Qatari officials continued shuttling between the two sides over changes to the proposed text.

Trump initially said he had rejected Iran's proposal outright. But his subsequent comments indicate that he still expects negotiations to resume.

Axios reported that indirect talks could take place as early as Monday (Sept. 28, 2026), with Qatar continuing its mediation efforts.

Iran has also kept the diplomatic channel open.

Araghchi said Tehran was awaiting the definitive US position through mediators and would decide its next step once that response arrives.

Analysts see the dispute shifting from whether there will be diplomacy to what each side is prepared to give up in exchange for reopening Hormuz.

Analysists read Trump’s “no” as evidence that Washington believes it has enough leverage to demand more from Tehran.

The US administration views its ongoing naval blockade of Iranian ports and sweeping economic sanctions as highly effective, squeezing an Iranian economy, according to the Wall Stree Journal.

The blockade is putting pressure on Iran's oil revenues, while military operations and escorts have allowed some commercial traffic to continue.

At the same time, Saudi Arabia is restoring alternative export capacity.

From Washington's perspective, those developments may reduce the immediate cost of refusing Iran's proposed terms.

While this is an assessment, it's not a settled fact. The continued disruption of Hormuz still carries major economic and military costs for the US and its allies.

The situation can now be viewed as a contest over who needs the deal more urgently.

Iran needs:

The US wants:

The Gulf states want:

That is why Hormuz remains central to the negotiations.

Iran still can disrupt Hormuz, a chokepoint critical to the world economy.

But Washington appears increasingly confident that the costs of managing a partially disrupted Hormuz are lower than the price Tehran is demanding for restoring normal traffic.

That does not mean Iran has lost its leverage.

Rather, the balance of leverage may be changing.

And Trump's latest position leaves the door open to a different deal: not necessarily “Iran opens Hormuz in exchange for US concessions”, but a broader agreement in which reopening the waterway becomes one element of a larger settlement.

For now, Trump's message is effectively: the US wants Hormuz open, but it does not accept Iran's price for opening it.

And with Trump now expecting more talks this week, the next question is whether Washington and Tehran can find a price that both sides can accept.