Secretary of State Marco Rubio flagged two key concerns with Iran’s latest peace proposal: uncertainty over “deeply fractured” leadership in Tehran and doubts about how the regime interprets its own terms.

Iran has reportedly proposed reopening the Strait of Hormuz and extending the truce via Pakistani mediators, delaying nuclear talks until later as both sides seek a diplomatic off-ramp.

In an interview with Fox News on Monday, Rubio used “opening the Strait of Hormuz” as an example of how vague language can mask unacceptable terms, warning that if Iran’s version of “open” means ships must seek Iranian permission or pay fees, that’s not freedom of navigation at all.

He argued the Strait is international waters, not a toll road, and that allowing Iran to control access would set a dangerous global precedent for other countries to claim dominance over waterways near their shores. “completely unacceptable – not just to us, but to the whole world,” Rubio said.

Rubio declined to speak for President Donald Trump on whether delaying nuclear talks would be acceptable, but made clear that Iran’s nuclear ambitions remain the “core issue” driving the U.S. stance. He said Iran is already wielding control over 20-25% of global energy supply like an “economic nuclear weapon,” even boasting about it publicly. A literal nuclear weapon, he warned, would give that same regime the ability to hold the entire region hostage.

He believes Iran is motivated to negotiate out of desperation due to its economic and military collapse, rather than genuine goodwill. He said Iran is a skilled negotiator looking to buy time, not make real concessions.

Trump May Reject Iran’s Latest Proposal

This development comes amid escalating tensions between the U.S. and Iran. On Tuesday, CNN reported that Trump is unlikely to accept Iran’s latest proposal, as it would forfeit key leverage over the Strait of Hormuz without addressing core concerns around nuclear enrichment and near-weapons-grade uranium stockpiles.

Moreover, U.S. officials are uncertain who actually holds decision-making power inside Iran’s divided regime, making any deal harder to trust or enforce.

White House did not immediately respond to Benzinga‘s request for comments.

Meanwhile, Treasury Secretary Scott Bessent warned of a potential collapse of Iran’s oil industry due to expanding U.S. sanctions. Bessent indicated that Iran’s oil sector is weakening under the intensified U.S. economic pressure, which could lead to domestic fuel shortages.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.

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