Iran demands full sanctions relief before reopening Strait of Hormuz

Iran’s foreign minister said Sunday there are no talks with Washington about reopening the Strait of Hormuz, after Tehran laid out sweeping demands that make a quick breakthrough unlikely.

Abbas Araghchi told state media the Islamic Republic would only reopen the vital waterway once U.S. sanctions are lifted and Washington ends what he called “hostile policies.” The demands include the release of billions in frozen Iranian funds, an end to all oil export restrictions, and a guarantee the U.S. won’t pull out of any future nuclear deal again. The move comes despite reports Oman had brokered indirect discussions between Iran and the U.S. to ease tensions around the strait, a chokepoint for global oil supplies.

The strait remains open for now, but Iran has repeatedly threatened to close it in response to sanctions that have crippled its economy. Since 2018, when President Trump abandoned the nuclear accord and reimposed harsh economic penalties, Iran has seized foreign tankers, attacked oil facilities, and staged military drills near the strait. Last year, Iran’s Revolutionary Guard seized a South Korean tanker over frozen funds, signaling how closely it ties shipping security to its own financial grievances. The U.S. has kept a carrier strike group in the Gulf and flown B-52 bombers on deterrence missions, raising the risk of miscalculation.

Analysts say Iran’s fresh demands show it’s pushing for major concessions before any talks can resume, betting the strait’s strategic value will force the U.S. into a broader deal. But Washington has so far refused to lift sanctions without first addressing Iran’s nuclear program and regional aggression. With Oman’s mediation efforts stalled and neither side willing to blink, the risk grows that a misstep—like a disrupted tanker or a skirmish between naval vessels—could trigger a wider conflict. For now, global oil markets remain on edge as the standoff over Hormuz threatens to tighten supply and push prices higher.