Iran has offered to reopen the Strait of Hormuz within seven days if Washington eases military pressure and lifts its blockade of Iranian ports, under a proposal delivered through mediators on Sept. 16, a senior Iranian official told Reuters on Tuesday. Crude prices fell about $3 a barrel on reports of the offer.

Iran's delegation in New York has full authority to revive diplomacy with the US and discuss an agreement to end hostilities through mediators, the official said. Kyodo separately reported that the proposal seeks an end to US military operations around the strait and has approval from Supreme Leader Mojtaba Khamenei and the Supreme National Security Council. The official cited by Kyodo ruled out a meeting between Presidents Masoud Pezeshkian and Donald Trump at the UN General Assembly.

The US port blockade has virtually halted Iran's crude exports, Kyodo reported. Tehran had previously outlined broader demands for ending the conflict. On Saturday, security chief Mohsen Rezaei told Al Jazeera those included “the end of the war on all fronts, the release of frozen assets, and the end of the naval blockade”. Parliament Speaker Mohammad Bagher Ghalibaf said Sunday that the strait would remain closed until Iran's conditions were met.