An emboldened Iranian regime has issued a fresh set of demands to the United States as it warned the Strait of Hormuz may not immediately reopen even if it reaches an agreement with Oman on managing shipping in the strategic waterway.
Omani officials have expressed confidence a deal to manage the strait is possible in recent days, with negotiations described as positive.
On Saturday, Iranian Foreign Minister Abbas Araghchi said talks were in their final stages, “specifically the determination of a transit route”, but fully reopening the waterway was contingent on other conditions.
Those included the US paying Iran compensation for what he described as violations of the Memorandum of Understanding, signed in June, which was meant to provide a pathway to permanently ending the conflict.
Iran’s security chief and Revolutionary Guard commander, Mohammad Baqer Zolqadr, later issued a more detailed list of demands.
Speaking to the semi-official news agency Tasnim, he declared the Strait of Hormuz would not reopen until the US “corrects its behavior”.
Zolqadr said the US must never threaten Iran again, permanently end the war with Tehran and its proxies, lift its blockade and remove all forces from the region, “completely compensate” the Iranian regime for war damage, lift sanctions, and “unconditionally” release frozen assets.
Iranian Foreign Minister Abbas Araghchi said talks with Oman were in their final stages (Photo: AFP/Getty)The maximalist demands reflect Iran’s confidence in the leverage it has over the US through its chokehold on the strait.
The effective closure of the strategic waterway has driven up oil and gas prices, worsening cost of living pressures just months away from key US mid-term elections.
Polls have shown the war is deeply unpopular with US voters, presenting President Donald Trump with a political headache in addition to few signs of strategic progress.
The US has yet to formally respond to Iran’s latest demands, but Trump has insisted several times the announcement of a deal “could be soon”.
However, the President has repeatedly made similar claims throughout the months-long conflict and has often supplemented them with threats of further violence.
Notably, Vice President JD Vance offered a more measured view in an interview with Fox News on Saturday.
“We’re really in the middle of the game here,” he said. “This thing is not over.”
Vance suggested the focus of present talks was “how you can actually set up a traffic scheme so that the ships can pass through safely”, with more complex issues, including Iran’s nuclear ambitions, apparently shelved for future discussions.
The Vice President also pushed back on suggestions Iran would charge tolls on shipping in the strait, saying Tehran had told US officials they had “no plans” to charge for transit.
The effective closure of the Strait of Hormuz has driven up oil and gas prices (Photo: AFP via Getty Images)Multiple reports, many citing senior Iranian officials, have presented a contrary narrative.
According to Reuters, Iran is seeking to charge tolls equivalent to as much as seven per cent of the value of cargo being shipped, which would net Tehran millions once the flow of traffic in the strait returns to pre-war levels.
US officials, including Trump, have repeatedly said shipping tolls were a red line in negotiations, but Iran has continued to push for charges as it seeks to secure a new source of long-term income for its struggling economy.
Tehran’s other demands have also previously been dismissed by the US.
Trump and Vance have previously ruled out “unconditionally” restoring Iran’s frozen assets or lifting sanctions on the regime.
Instead, June’s MOU called for a phased approach which was contingent on Tehran agreeing to give up its stockpile of nuclear material.
Calls from Iran to permanently end the war against its proxy groups have also been largely ignored, with US officials maintaining it has the right to respond to regional aggression and allied nations, including Israel, pushing for the militias to be completely disbanded.
Most immediately, however, the US has been clear it will not lift its blockade on Iranian ports until after a deal has been agreed.
Whether Trump and others in his administration would be willing to shift their stance in the face of an otherwise favourable agreement on managing the strait remains to be seen, but coupled with Iran’s other demands it appears likely the waterway will remain a major sticking point for the foreseeable future.
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