Trump rejects Iran's 7-day Hormuz plan but tells Axios he expects talks this week. Iran's Guards claim they seized a U.S. underwater drone.

Here is the situation as of Sept. 27. President Trump said he expects talks with Iran to resume in the coming week, despite rejecting Tehran's proposal for a seven-day truce followed by the reopening of the Strait of Hormuz, France 24 reports with AFP. Foreign Minister Abbas Araghchi said the plan, brought to the U.N. General Assembly, was conveyed to Washington through Qatar. It called for a cessation of hostilities across the Middle East, including Lebanon, and a return to the terms of an earlier ceasefire that collapsed: release of frozen Iranian assets, lifting of sanctions on Iranian oil and an end to the U.S. naval blockade. "They want to make a deal, but it is not the deal that I want to make," Trump told Axios. "It is what we would have maybe agreed to a year ago." Axios reported indirect talks could come as early as Monday. "Our conditions are clear, and any move toward reopening the Strait of Hormuz is contingent upon these conditions being fulfilled," Araghchi said, according to state broadcaster IRIB. U.N. Ambassador Mike Waltz called the offer "a pretty cynical attempt to put something on the table that they knew was unacceptable." Meanwhile, Iran's Revolutionary Guards said they seized an American submersible drone in the strait on Sunday. The report carried no U.S. confirmation. The war began nearly seven months ago with U.S. and Israeli strikes; a June memorandum of understanding broke down when Iran fired on ships it accused of deviating from its approved route. Assessment: the two sides are arguing over sequence as much as substance. Tehran wants relief first and talks second; Washington wants the reverse. In January 1981, Algerian mediators solved a similar problem in the Algiers Accords, moving frozen Iranian assets through escrow as 52 American hostages went free. Watch for a first, verifiable step through Qatar. That is the signal.