A ship anchors and an Iranian flag waving in the wind in the Strait of Hormuz near Larak Island, Iran, on May 16, 2026.
Majid Saidi | Getty Images News | Getty Images
The United States and Iran have signaled progress in talks to end the war, but the militants remain at odds over Iran’s enriched uranium stockpile and tolls through the strategic Strait of Hormuz.
US Secretary of State Marco Rubio said on Thursday there were “good signs” that a deal to end the conflict was on the horizon, but warned that such a deal would become “unfeasible” if Iran pursues permanent restrictions on shipping through the Strait of Hormuz.
“Nobody in the world is in favor of a fee structure. That can’t happen and that’s unacceptable,” Rubio told reporters in Miami, Florida.
“If we don’t get a good deal, the president has made it clear that there are other options,” Rubio said, without elaborating.
This came shortly after Iran announced that the latest offer from the United States brought the warring countries closer to a peace deal. The Islamic Republic is currently considering the American position and has been exchanging messages for several weeks based on Iran’s own 14-point framework.
The semi-official Iranian Student News Agency (ISNA) said the latest proposal submitted by the United States had “narrowed the gap to some extent” and that “further reductions require an end to the temptation of war from the United States.”
Strait of Hormuz payment system
Talks to end the Iran war have made little progress in recent weeks, with both sides in an uneasy truce as Iran closes the Strait of Hormuz and the United States blocks Iranian ports.
Asked about reports of talks between Iran and U.S. ally Oman about the possibility of the two countries working together on creating a payment system to control traffic in the Strait of Hormuz, US President Donald Trump dismissed the idea. President Trump said his administration has “complete control” of the waterway.
“We want it open. We want it to be free. We don’t want tolls. It’s international. It’s an international waterway,” the president told reporters Thursday.
A ship remains anchored in the Strait of Hormuz near Larak Island, Iran, on May 16, 2026. Negotiations between the United States and Iran over the opening of the vital waterway have largely stalled as the two sides mutually reject proposals to end the war that began when the United States and Israel attacked Iran on February 28.
Majid Saidi | Getty Images News | Getty Images
The Strait of Hormuz, located in the Gulf between Oman and Iran, is recognized as one of the world’s most important oil chokepoints.
Normally, about 20% of the world’s oil and liquefied natural gas passes through the Strait of Hormuz, but shipping traffic has virtually stopped since the U.S.-Israel-led offensive against Iran began on February 28.
Enriched uranium stockpile
The US president also promised to withdraw Iran’s enriched uranium stockpile.
The issue has been a major sticking point throughout negotiations, with the US government demanding that Tehran transfer the enriched uranium over concerns it could be used for nuclear weapons. Iran has resisted such calls, insisting the stockpile is intended for peaceful purposes.
Reuters reported on Thursday, citing Iranian sources, that Iran’s Supreme Leader Mojtaba Khamenei has given instructions that the country’s near-weapons-grade uranium should not be sent out of the country.
The U.S. military’s Central Command (CENTCOM) announced via social media on Friday that the USS Abraham Lincoln Carrier Strike Group “maintains maximum readiness” in the Arabian Sea “while reinforcing the blockade of Iranian ports.”
Pakistan Army Chief Asim Munir visited the Iranian capital on Thursday as part of ongoing mediation talks between Washington and Tehran, Iran’s ISNA news agency said.
