Donald Trump has rejected Iran’s latest proposal to end the war and reopen the Strait of Hormuz as experts say the United States president believes Washington has more to gain by waiting than by accepting Tehran’s terms at this moment.

“I reject their proposal,” Trump told reporters on Saturday, arguing that Iran wants an agreement because it is “losing so badly”.

“They want to make a deal, and I think that’s fine,” Trump said. “I’d like to make a deal too. But that deal would not be acceptable.”

On Sunday, Iranian ⁠⁠Foreign ⁠⁠Minister Abbas Araghchi said Tehran had ⁠⁠seen the initial reaction from ‌‌Trump to its proposal but had yet to receive a response through ⁠⁠mediators. In the latest diplomatic efforts, Qatar has played a role in mediating talks between Iran and the US on the sidelines of the United Nations General Assembly meeting in New York.

Iran’s seven-day proposal included Washington lifting its naval blockade of Iranian ports, waiving sanctions on Iranian oil sales, releasing an estimated $12bn in frozen Iranian assets and observing a wider regional ceasefire, including in Lebanon and Yemen.

Iran would then reopen the Strait of Hormuz and begin negotiations with Washington on a final agreement.

The latest proposals are similar to the June memorandum of understanding (MoU) the two countries signed. But the MoU collapsed last month due to differences on the terms of the deal, which resulted in an escalation in attacks, particularly in and around the Strait of Hormuz, which essentially remains under Iranian blockade.

According to experts, Trump’s rejection suggested that while both sides continue to publicly leave the door open for diplomacy, they remain far apart over who should make the first concessions.

“Trump’s calculation looks fairly straightforward. He believes the combination of the naval blockade and economic isolation is finally squeezing Iran hard enough that Tehran’s latest proposal is evidence of weakness rather than an offer Washington needs to seize,” Andreas Krieg, associate professor at King’s College London, told Al Jazeera.

His public argument that Iran is “losing badly” is important because it suggests he thinks time is improving the US bargaining position, Krieg said.

Why does Trump think he can wait?

A key part of Trump’s calculation appears to be a belief that the economic pressure on Iran has not yet run its course.

The Trump administration has escalated economic pressure on Tehran, tightening its naval blockade while imposing sanctions targeting Iranian oil revenues and threatening secondary sanctions against countries doing business with Tehran.

Last week, the US imposed aviation sanctions on Iran, disrupting flights. This came weeks after US Treasury Secretary Scott Bessent announced an economic pressure campaign against Iran, promising to target Tehran’s financial interests across the world.

Richard Weitz, a senior nonresident associate fellow at the NATO Defence College, told Al Jazeera that the White House may believe it can “wait a bit and get better terms”.

There is also concern in Washington about Iran’s proposed sequencing, he said.

Therefore, Weitz said Washington may be calculating that “economic pressure over time will induce the Iranian government to make more concessions”.

“This is what occurred arguably a decade ago, leading to the 2015 Iran nuclear deal as the Iranian government decided it [the US] needed to end the economic sanctions in return for making concessions on its nuclear programme,” he added.

It is, therefore, possible that “we could see the same kind of trade-off in the coming months”.

Iran could make Trump ‘pay’

However, waiting for a deal also carries considerable political risk for the US president, experts said, because his Republican Party could lose November’s midterm elections.

A late August Reuters/Ipsos poll suggested 63 percent of Americans opposed the US-Israel war on Iran while 31 percent supported it. Rising fuel and transportation costs could also feed into broader cost-of-living concerns before the elections.

The problem for Trump is that time does not only increase pressure on Iran, Krieg said. “The gamble is that time cuts both ways,” he noted.

With the midterms approaching, Trump does not want to appear to lift the blockade, waive oil sanctions and release Iranian assets simply to regain access to a waterway that Iran itself disrupted, Krieg said.

“But every additional week also means elevated energy prices, continued military exposure and mounting pressure on Gulf partners.”

The essential closure of the Strait of Hormuz has disrupted oil and gas flows from the Gulf nations, which depend on energy exports to finance their budgets.

Mohamad Elmasry, a professor at the Doha Institute for Graduate Studies, told Al Jazeera that Iran’s proposal could be viewed as “kind of throwing a bone to Trump” by offering a potential route towards lower oil and gas prices before the vote.

However, Iran may decide “to make Trump pay for declining the proposal and the increased economic pressure the country is under”, he told Al Jazeera.

“They may decide that this is the time to escalate … just as the midterms are approaching.”

The Republican Party is not doing well in the polls, and a number of its candidates are “distancing themselves” from Trump, he noted. Polls indicated that Republicans could lose their slim majorities in the US Congress.

It’s not just the Iranians under severe economic pressure because of the US naval blockade and ongoing sanctions, “it’s also the Trump administration,” Elmasry said.

Trump’s wait for more Iranian concessions could ‘backfire’

Trump “wants Tehran to reopen Hormuz without Washington paying the full economic and political price Iran is currently demanding”, Krieg said.

“The danger is that he is confusing Iranian pain with Iranian willingness to capitulate. Those are not the same thing.”

Iran is undoubtedly under pressure. Krieg said the sanctions and blockade are “biting”, which is precisely why Tehran needs an agreement.

But additional pressure does not necessarily produce additional concessions.

Iran could instead increase the costs of the conflict for its adversaries, Krieg said, including through the Strait of Hormuz, regional infrastructure and potentially Bab al-Mandeb, another strait between Yemen and the Horn of Africa.

In recent weeks, the strategic weight of Bab al-Mandeb has increased dramatically after the Iran-aligned Houthis expanded their control of Yemen’s Red Sea coastline.

This advance in effect has handed the Houthis unrestricted access to the narrow waterway, a worrying development for global shipping given the group’s track record of targeting vessels, including Israeli-linked ships, in solidarity with Palestinians in Gaza.

The Houthis have already declared a naval blockade on Saudi ships in the Red Sea, which Riyadh began to use as an alternative shipping route to Hormuz for its oil exports.

“So this can backfire,” Krieg warned. “Trump thinks Iran’s clock is running faster than America’s. Tehran thinks the opposite: that Qatar, Saudi Arabia, the UAE, global energy markets and ultimately Trump himself have a lower tolerance for prolonged disruption than Iran has for economic punishment.”

Ross Harrison, a senior fellow at the Middle East Institute, similarly told Al Jazeera that Tehran may now be “less worried about overplaying their hand than they are underplaying their hand”.

According to Harrison, Tehran now sees the risk of escalation as less costly than agreeing to something prematurely or appearing willing to compromise, particularly after Washington’s response to the proposal.

In an interview with Al Jazeera that aired on Saturday, Iranian President Masoud Pezeshkian said his country no longer trusts negotiations with Washington after attacks occurred during previous rounds of talks and were followed by sanctions.

“We have no trust in the American side and do not know on what basis an understanding can be reached with it,” Pezeshkian said.

Tehran betting ‘heavily’ on time

US-based analyst Harrison noted that Tehran was probably “not surprised at all” by Trump’s rejection and viewed the offer partly as a way to demonstrate to Iranians and the American public that it remained willing to negotiate.

Experts said Tehran understands the US president wants an exit he can present as a victory.

“Iran is betting heavily on time. … Its strategy is to keep the pressure high enough that he eventually comes back to negotiations while making that exit progressively more expensive,” Krieg said.

“The Iranian calculation is essentially: Do not give Trump the deal cheaply when he may need it more badly several weeks or months from now.”

Harrison said the Iranian offer was a “show of goodwill” intended to demonstrate Iran’s willingness to negotiate to both its domestic audience and the American public.

According to Krieg, “protraction” of the conflict was the “most likely outcome”.

“Both sides need a deal, but both currently think waiting will improve the deal they eventually get,” he added.