Iran Demands US Lift Blockade and Pay Reparations to Reopen Strait of Hormuz

Iran issued a formal list of demands on Saturday for reopening the Strait of Hormuz, the world’s most critical oil and gas chokepoint. Mohammad Bagher Zolghadr, secretary of Iran’s Supreme National Security Council, said the US must lift its naval blockade, end sanctions, withdraw military forces, pay war reparations, and release frozen assets. The demands complicate negotiations with Oman on a new transit route, though both sides signaled progress on that separate track.

What Iran is demanding

Iran’s Supreme National Security Council published six core demands on Saturday. The US must stop threatening Iran, end military action against Iran and its regional allies, lift the naval blockade of Iranian ports, withdraw air and naval forces from the region, fully compensate Iran for war damage, lift all sanctions, and unconditionally release frozen Iranian assets. Secretary Zolghadr, who also commands the Islamic Revolutionary Guard Corps, said the strait will not reopen until the US corrects its behavior. The interim ceasefire deal signed in June included a schedule to end sanctions and compensation plan as part of final negotiations, but the two sides have not agreed on amounts or timelines.

Why the Strait of Hormuz matters

The Strait of Hormuz carries roughly one-fifth of the world’s oil and natural gas. Iran has effectively blockaded the waterway since February when the US and Israel began attacking Iranian targets. The closure has driven US gas prices to $4.02 per gallon on average, up from $3.16 one year ago, and created global energy volatility. The United Arab Emirates reported one of its oil tankers was targeted by a missile while transiting the strait on Saturday, with no injuries reported.

Oman’s separate negotiations show promise

Iran and Oman, which border the strait, are negotiating a separate deal to establish a new transit route through the waterway. Iranian Foreign Minister Abbas Araghchi said Saturday the two countries were close to an agreement on navigation and route determination. Oman’s foreign ministry said discussions were continuing in a positive and constructive atmosphere. However, Araghchi stressed that even a route agreement would not mean full reopening of the strait, as other conditions must be met first. Oman warned that ongoing attacks on shipping could derail progress.

The deadline and US response

The 60-day period to negotiate a final deal expires in just over one week, though it can be extended. Vice President JD Vance said Saturday that negotiations have progressed but the conflict is not over. He stated the US is applying diplomatic, economic, and military tools to ensure Americans get lower gas and energy prices. The Trump administration has previously demanded the complete reopening of the strait and rejected Iran’s attempts to charge transit fees or exercise unilateral control. The White House has not yet formally responded to Iran’s new demands.

Final Thoughts

Iran’s formal demands signal hardened positions just as the interim deal deadline approaches. While Oman talks on a transit route show tactical progress, the gap between Iran’s sweeping demands and US willingness to meet them remains wide. Energy markets will likely stay volatile until a breakthrough emerges.

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