Iran Issues Sweeping Demands to Reopen Strait of Hormuz, Stalling Global Trade

Iran has thrown a wrench into negotiations over the Strait of Hormuz by issuing a broad list of conditions the United States must meet before the critical waterway reopens to commercial traffic. Mohammad Bagher Zolghadr, secretary of Iran's Supreme National Security Council, publicly demanded that Washington lift its naval blockade and sanctions, withdraw military forces from the region, pay war reparations, release frozen Iranian assets, and end support for attacks on Iran's allies — a package of demands that would represent a sweeping reversal of U.S. policy.

The strait has been effectively closed since Iran shut it down in February, retaliating for a U.S. and Israeli military strike. Ship crossings have collapsed from roughly 130 per day before the conflict to just over a dozen daily in the past week, according to maritime data firm Kpler. Some vessels have switched off their location transponders entirely to avoid detection by Iranian or American forces, making even those figures uncertain. An Emirati state oil company, Abu Dhabi National Oil Company, said at least 15 of its vessels have been attacked in the waterway since hostilities began, resulting in one death and 20 crew injuries.

The demands upend expectations of an imminent deal brokered through Oman, which sits on the other side of the strait from Iran. Iran's foreign minister Abbas Araghchi acknowledged the two countries are 'very close' to an agreement on a temporary shipping route, but explicitly tied any reopening to U.S. compliance — specifically accusing Washington of violating the June 'Islamabad Memorandum,' a cease-fire brokered by Pakistan that already collapsed over disputed interpretations. The U.S. had supported an alternative southern shipping lane hugging Oman's coast; Iran viewed that as an attempt to circumvent its control over the waterway and struck vessels using it.

The political stakes are significant for the Trump administration. Prolonged closure of the Hormuz strait keeps global energy prices elevated, a consumer pain point that Republicans face heading into November midterm elections. Vice President JD Vance, speaking on Fox News on Saturday, framed the U.S. as holding strong leverage — arguing Iran is 'hurting in a big way' — but declined to specify what Washington might concede. Analysts note that Iran's hard-line domestic politics are also a factor: President Masoud Pezeshkian and Foreign Minister Araghchi face pressure from conservatives who oppose any accommodation with the United States, and the sweeping public demands may be partly aimed at managing that audience.