A large billboard reading The Strait of Hormuz remains closed
Iran Reportedly rejected a ceasefire proposal sent by the U.S. through the Iraqi prime minister. ATTA KENARE / AFP via Getty Images

Iran rejected a ceasefire proposal sent by the U.S. through the Iraqi prime minister on Thursday, according to a new report.

The New York Times detailed that Ali al-Zaidi conveyed the proposal to Tehran after visiting Washington earlier this month.

However, he was told that Tehran was not interested in a "temporary deal" that would not address the status of the Hormuz Strait, a sticking point in negotiations that led to the current flare up.

At the same time, President Donald Trump told Axios that he is close to making a decision on whether to launch a "massive attack" against Iran.

"I am considering a massive attack. Bigger than ever before. I am close to making a decision. We are all set for it," the president told the outlet.

He went on to say that Tehran wants to negotiate but he believes the regime has not "received enough pain yet."

Trump had earlier threatened to strike Iran if the Houthis again targeted vessels crossing through the Red Sea following an attack against tankers carrying Saudi oil.

CNBC noted that Saudi Arabia has been diverting millions of barrels of oil per day from the Strait of Hormuz to the Red Sea as a result of the war. The Houthis preventing Riyadh from doing so further exacerbates the disruption taking place in oil markets.

Elsewhere, Reuters detailed that Tehran flew military commanders and equipment to Yemen to help the Houthis enforce their blockade of Saudi oil going through the Red Sea. The outlet claimed that the flight took place on July 13 and involved at least 10 members of the Iranian Revolutionary Guard, including senior commanders.

"The IRGC commanders travelled there to support Houthi operations and provide training on new missile systems," one source told the outlet, adding that the flight also included gold to fund the activities.

Trump also threatened to strike Iran should the Houthis continue such actions. "A year ago the United States of America attacked, very powerfully, the Houthis, for their interference with commerce and trade, by shooting at ships. Since that time, and during our conflict with Iran, they have acted very responsibly. Unfortunately, now they are starting up again, shooting at two Saudi Arabian ships last night," Trump said in a social media publication on Thursday.

"Please let this TRUTH serve to represent that if they do this again, the U.S. will hold Iran responsible, in that the Houthis are a Surrogate and/or Proxy of Iran, and major military punishment will be inflicted upon Iran and, of course, the Houthis, themselves, who I am very disappointed with in that they have, until now, acted very professionally and smart," he added.