Iran issues tough demands to reopen strait of Hormuz as deal still out of reach

What Happened

Iran's Supreme National Security Council, through secretary and Islamic Revolutionary Guard Corps (IRGC) commander Mohammad Bagher Zolghadr, declared that the Strait of Hormuz will not reopen until the United States 'corrects its behaviour.' The demands, broadcast by state media, include a permanent US end to threats against Iran, an end to the war with Iran and its regional armed allies, the lifting of a naval blockade of Iranian ports, withdrawal of US military forces from the area, complete compensation for war damage, lifting of sanctions, and unconditional release of frozen assets. The demands came as negotiations for a final deal remained unresolved, with a 60-day period set to expire in just over a week. Iranian Foreign Minister Abbas Araghchi said an agreement on navigation and a transit route was close, but reopening the waterway depends on other conditions; he blamed the US for violating an interim deal signed in June. Mediator Oman described the talks as ongoing in a 'positive and constructive atmosphere' and condemned attacks on ships. Separately, the United Arab Emirates said an Adnoc-owned vessel was attacked by an Iranian missile while transiting the strait; the company reported no casualties but noted over a dozen of its vessels have been attacked since February. The United Kingdom Maritime Trade Operations reported a projectile strike on a vessel east of Khasab, Oman, that caused a contained fire; it was unclear if this was the same incident. The US, which wants an acceptable deal before ending its blockade, did not immediately comment.

Key Actors

Why It Matters

The Strait of Hormuz is a critical choke point for global oil and gas supplies. Iran's maximalist demands and its reported missile attack on a UAE vessel underscore the volatile combination of military pressure and stalled diplomacy. A failure to reach a final deal could escalate into broader conflict, disrupting energy markets and deepening regional instability, while linking the strait's status to sanctions and war compensation sets a contentious precedent for maritime security.

Watch For

Monitor whether the United States issues a formal response to Iran's list of demands, and whether the 60-day negotiating window is extended beyond the deadline expected in just over a week. Watch for further attacks on commercial shipping in the strait, any progress on the separate Iran-Oman strait management agreement, and whether the interim June deal collapses or is reinforced by new diplomatic initiatives.