Iran Reportedly Says It Can Quickly Reopen Hormuz If a Deal Is Reached. Oil Falls Further.

Iran said it can reopen the Strait of Hormuz in a matter of seven days if it reaches a deal with the U.S. to ease military pressure and lift the blockade of its ports, according to different media reports.

Oil prices are falling further on the news. Brent crude, the international benchmark, dropped 2.22% and clocked in at $98.11 a barrel at 7:56 a.m. ET, while West Texas Intermediate, the U.S. benchmark, plunged 2.70% and stood below $90 a barrel at the same time.

Citing an unnamed senior Iranian official, Reuters detailed that Tehran conveyed a proposal to the U.S. last week. "The U.S. needs ​to announce that it wants to resolve the issue diplomatically, ​make that official, and then agree on a timeline for how the process will move forward," the official said.

President Donald Trump said he would probably be open to meeting with Iranian President Masoud Pezeshkian, who is expected to travel to New York to attend the United Nations General Assembly. The Iranian official said the delegation flying to New York has full authority to conduct diplomatic talks, but Pezeshkian is not expected to meet with Trump at the moment. Trump is set to address the UNGA on Tuesday.

At the same time, Trump also said he is in a "deciding mode" and "very big things" about the war will take place soon. "My question is, if and when do I blow the entire nation up? They better behave," Trump said. Treasury Secretary Scott Bessent also threatened to "shut down" Iranian airlines and sanction countries receiving the planes as of Wednesday.

"How do we do that? That if they land, you cannot provide them with fuel. You cannot provide them with landing services, you cannot sell them tickets, or you will be knocked out of the dollar system," Bessent said.

The Iranian military also said its intelligence shows the U.S. preparing a new, large-scale strike against the country and warned of "painful retaliation" across the region. Countries deemed to be backing the strike would be considered as involved in the conflict, forces added.

"If the U.S. makes any mistake against the Islamic Republic of Iran, all its positions and interests in the region will be targeted by sustained, effective and painful attacks," Iranian forces said.