US and Iran Explore Phased Deal to Reopen Strait of Hormuz in Exchange for Lifting Economic Blockade

U.S. and Iranian negotiators are discussing a phased agreement to end their conflict over the Strait of Hormuz, Reuters reported on September 24, citing sources familiar with the talks. The potential first step would see Iran reopen the strait to navigation in exchange for Washington lifting its economic blockade, with Tehran potentially also gaining access to frozen Iranian assets as part of the initial phase.

The talks face a central structural obstacle: sequencing. Neither Washington nor Tehran is willing to surrender its primary source of leverage first, leaving the negotiations fragile. Iran has signaled it is prepared to defer its demand for transit fees through Hormuz, but it is not willing to relinquish administrative control of the waterway, a position that complicates prospects for a deal. Gulf states have separately rejected Iranian control over the strait and are pressing for an unconditional restoration of freedom of navigation.

The Strait of Hormuz is one of the world's most critical energy chokepoints, handling a substantial share of global oil and liquefied natural gas flows before the conflict disrupted shipping. A phased agreement, if reached, would represent a significant step toward restoring those flows, though the sequencing dispute means no agreement is imminent.