Iran Sets New Conditions for Reopening Strait of Hormuz

Iran’s military said the Strait of Hormuz will remain closed until the United States accepts Tehran’s conditions, a statement that came as attacks on regional shipping continued and after the United Arab Emirates said an airstrike targeted one of its vessels, CNBC reported.

The hardened stance arrived alongside more encouraging signals from the negotiating table. Oman, which is mediating, described the latest round of talks as positive, and both sides suggested progress toward an agreement on a new shipping route through the strait that Iran and Oman would jointly oversee, according to the BBC. Iranian Foreign Minister Abbas Araghchi said discussions were in their final stages but cautioned that reopening the waterway remained “subject to other conditions,” including U.S. compensation for what Tehran calls violations of a ceasefire memorandum the two sides signed in June.

President Donald Trump said earlier in the week that a deal “could be soon,” but Vice President JD Vance struck a more cautious tone Saturday, telling Fox News that work remained even if progress was being made.

The context

Tehran has effectively blockaded the Strait of Hormuz, through which roughly a fifth of the world’s oil and natural gas typically flows, since the U.S. and Israel began attacking Iran in February, according to the BBC. A ceasefire framework signed in June — a Memorandum of Understanding meant to halt fighting and advance talks toward ending the war — collapsed within days, with tit-for-tat attacks resuming shortly after it was signed. Diplomatic talks broke down as well. The conflict has widened beyond the strait: Yemen’s Iran-backed Houthis have blockaded Saudi Arabia’s Red Sea ports since July 20. Recent negotiations, mediated by Oman, have centered on a jointly managed shipping route through the strait as a step toward restoring maritime traffic. Oman’s foreign ministry has warned that continued attacks on shipping could jeopardize that effort. The week’s trajectory captured the volatility: signs of a near-deal midweek gave way to fresh Iranian demands by Sunday.

Why it matters

The strait normally carries about a fifth of global oil and natural gas, and oil supplies now sit at a 45-year low, making the outcome of these talks a direct driver of world energy prices. The negotiations also shape the direction of a five-month war between Iran and the U.S. and Israel that has drawn in shipping across the region, including the UAE vessel reportedly struck by an airstrike. The AP reported that reaching a deal may require Trump to compromise — a concession the outlet described as out of character for the president.

What’s next

No timeline for finalizing a deal has been announced, and Iran has warned that even a route agreement with Oman would not immediately reopen the strait. Key questions include whether Washington will address Tehran’s conditions, whether compensation talks over the failed June memorandum advance, and whether continuing attacks on shipping derail the Oman-mediated process. Vance’s comment that “we’re really in the middle of the game here” suggests U.S. officials expect further negotiation.