US President Donald Trump said on Saturday (Sep 26) 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."

The waterway key to the world's oil supply is central to the conflict between the US and Iran, which is at a stalemate after nearly seven months, though new mediation efforts took place this week.