US-Iran War: Will the Strait of Hormuz Reopen and End the Blockade? The two countries are discussing a phased deal, the report says | Today’s news
US and Iranian negotiators in New York are discussing a phased deal that could see Tehran restore shipping through the Strait of Hormuz in exchange for Washington easing its economic blockade, Reuters reported, citing sources familiar with the talks.
Hormuz has emerged as a key leverage point in efforts to end the nearly seven-month conflict. Iran wants relief from US economic pressure as Washington seeks to restore unrestricted maritime traffic through a vital global oil route.
Negotiations remain difficult as neither side is willing to give up its negotiating power first, according to Iranian, regional and Western diplomatic sources cited by Reuters. At the same time, Iranian officials recognize the growing economic impact of maintaining the confrontation.
A senior Iranian official mentioned that a step-by-step deal could provide a way forward, with Tehran reopening the waterway once Washington lifts its economic blockade. Such an arrangement would also potentially allow Iran to regain access to frozen assets.
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“One way forward would be to solve the crisis in stages. The first would be to end the blockade and reopen Hormuz,” he said on the sidelines of the UN General Assembly.
That would mean US President Donald Trump would accept another temporary fix after an earlier understanding collapsed in July. So the central challenge facing negotiators is not just to outline a deal, but also to ensure that any concessions are durable enough that both sides can trust them, the sources said.
Trump said he thought the U.S. and Iran could reach a deal after the Nov. 3 midterm congressional elections. A senior European official said the Iranians “have a very long list of demands”.
A White House official said that while “Iran is desperate for a deal, President Trump holds all the cards and will make whatever decision is best for the United States.”
He said Trump remained “open to negotiations with Iran under the right circumstances” but had no need to negotiate and the US was in a “very strong position” with control over the Strait of Hormuz and an Iranian economy that was “collapsing”.
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The official said that “crushing sanctions” and “one of the most successful blockades in history” have crippled Iran’s economy and left Iran completely broke. Trump was content to let the “inevitable Iranian collapse” play out rather than be “played” by Tehran, the official said.
Former US negotiator Dennis Ross said he sees only a 30% chance of reaching a deal before the vote, but that both sides may have stronger reasons to strike a deal sooner than after the midterms.
“The blockade is what really squeezes the Iranians. It strangles them,” Ross said.
A deal before the midterms could benefit Trump, he said, as reopening Hormuz could ease tensions in the Persian Gulf, curb oil prices and help lower politically sensitive US gasoline prices.
Iran’s chances of getting much-needed economic relief may be greater, while Trump has an increasing political incentive to close the deal.
After the midterms, Ross said, Trump may face fewer constraints and be more willing to step up pressure or consider military options.
Leverage as an obstacle?
The leverage that brought Washington and Tehran back to negotiations could also make compromises more difficult.
Washington controls the pressure that hurts Tehran the most, while Tehran controls access to a critical energy choke point. Neither side wants to give up that leverage without extracting something tangible in return.
That is, the midterms may be less a term for diplomacy than for preserving the conditions that make diplomatic efforts possible. If Washington and Tehran fail to turn leverage into a deal before the mid-term, the diplomatic window could narrow as the risk of escalation grows.
Even as Tehran seeks a diplomatic way out, it is preparing for the possibility of renewed war with Washington, an Iranian official said, accusing the US of using an economic blockade and the threat of force as a tool of coercion.
“Our fingers are on the trigger. The Americans know what they have to do, but because of their exaggerated demands, the chance that diplomacy will solve this is extremely low,” said a senior Iranian official.
Tehran may delay demand for Hormuz toll to secure blockade relief
Regional sources said Iran was ready to move its demand for transit fees for vessels using the Strait of Hormuz out of the main agreement and place it in a separate document as securing an end to the blockade became a more immediate concern.
Gulf countries have opposed any proposal involving transit payments. Regional officials said any compromise on the issue would be temporary and would not mean Tehran abandoning its broader position.
The US has stepped up economic pressure on Iran by imposing additional sanctions on top of the blockade, which has severely limited oil exports and access to crucial foreign currency.
Washington also this month imposed sanctions on Iran’s remaining commercial airlines and related support networks in an effort to cut off economic channels that support the government and the Islamic Revolutionary Guard Corps. Trump warned that Iran’s economy could “rot” if Tehran failed to reach a deal.
“Iran’s primary focus is not to impose tolls in Hormuz, but to maintain its administrative control over the waterway. Iran may be willing to postpone the issue of tolls, but it will not give up administrative control over the strait,” he said.
The talks in New York reflect broader disagreements between the parties: Washington is trying to use economic pressure to secure concessions, while Tehran wants to ease those restrictions before making concessions. Gulf countries, meanwhile, are seeking to end the conflict without allowing the strategically important waterways to become permanent bargaining chips.
