Iran has set six sweeping conditions for reopening the Strait of Hormuz, effectively rejecting expectations of an imminent return to normal shipping through the strategic waterway unless the United States makes major political, military and financial concessions.
In a statement issued by Mohammad Baqer Zolghadr, secretary of Iran’s Supreme National Security Council, Tehran said the strait would remain closed until Washington ends what it described as hostile behaviour towards Iran.
The demands include an end to US threats and military action against Iran, a permanent end to the war, the withdrawal of US naval and air forces from the region around Iran, compensation for war-related losses, the lifting of sanctions and the unconditional release of frozen Iranian assets.
The conditions raise fresh doubts over diplomatic efforts between Washington and Tehran and whether any emerging agreement can deliver a rapid reopening of the waterway, a critical artery for global oil and gas supplies.
The statement is particularly significant because it indicates that the much-discussed US-Iran draft agreement does not, from Tehran’s perspective, amount to an agreement to reopen the Strait of Hormuz.
Any eventual deal would also require approval from Iran’s Supreme National Security Council, making the body’s position critical to the prospects of restoring normal maritime traffic.
Shipping flows remain disrupted
Shipping data meanwhile suggests that disruption in the waterway is continuing despite diplomatic efforts to ease tensions.
Only 33 vessels transited the Strait of Hormuz from Monday through Thursday, compared with 50 during the same period a week earlier. Just six crude tankers have reportedly cleared the strait outbound so far this week.
The decline comes despite expectations that Iran and Oman were nearing an arrangement to establish a shipping corridor through the waterway.
The continued uncertainty is keeping energy markets on edge, with traders watching closely for signs that the world’s major oil chokepoint can return to normal operations.
Iran has also been considering restrictions on US and Israeli vessels, while earlier proposals for charging transit fees have added to concerns among shipowners and energy companies.
The European Union has accused Iran’s Islamic Revolutionary Guard Corps Navy of enforcing a screening and toll system for vessels using the strait.
US projects return to normal flows
Washington, however, has presented a considerably more optimistic assessment of the negotiations.
JD Vance, US Vice President, said oil and gas flows from the Gulf could eventually return to pre-war levels. He also said Iran had told Washington it had no plans to impose tolls on vessels, although he acknowledged that the US did not fully trust Tehran’s assurances.
The conflicting positions highlight the gap between Washington and Tehran over what any diplomatic settlement should deliver.
While the US is talking about restoring normal energy flows, Iran is demanding major concessions on military activity, sanctions, compensation and access to its frozen assets before reopening the strategic waterway.
For oil traders, the key issue is therefore no longer simply whether Washington and Tehran are negotiating, but whether they are negotiating the same outcome for the Strait of Hormuz.