Trump rejects Iranian proposal to open Hormuz and end fighting

US President Donald Trump said on Saturday he had rejected an Iranian proposal to reopen the Strait of Hormuz and end fighting in the Middle East.

Iran raised the initiative at the UN General Assembly in New York, saying it had been transmitted to the Americans via Qatari mediators and that it could reopen the strategic waterway and put an end to hostilities in the region within seven days.

But in comments to reporters at the White House, Trump said: "I reject their proposal...I rejected their deal.

"They want to make a deal to open the Hormuz Strait immediately because they're losing so badly," he said before leaving for Tennessee. "We're winning tremendously.

"They want to make a deal and I think that's fine, I like making a deal too. What they want to do is immediately open the Hormuz Strait...because they have no money coming in, because they get their money from the Hormuz Strait," Trump said.

The US has imposed an economic blockade on Iran to put pressure on Tehran to lift its blockade of Hormuz, which has drastically reduced shipping through the strait, even though Trump again asserted that the US had control of the waterway.

The Wall Street Journal first reported that Trump had rejected the Iranian proposal, citing unnamed US officials.

It said Trump was privately sceptical that Iran would meet his demands and had told his staff that he sees a renewed bombing campaign as likely after the November US midterm elections to Congress.

A US official had said earlier that discussions with Iran through mediators were "positive and constructive".