Iran demands US lift sanctions to reopen Strait of Hormuz

Iran’s Revolutionary Guard (IRGC) has set fresh conditions for reopening the Strait of Hormuz to international shipping, demanding an end to the U.S.-led blockade of Iran before Tehran will lift its own restrictions on the key waterway. The move comes as tensions surge in the Gulf, where Washington has stepped up patrols and sanctions enforcement in response to a wave of attacks on commercial vessels linked to Iran. The strait, through which about a fifth of the world’s oil passes, has become a flashpoint in the shadow conflict between the two countries.

For months, Iran has tightened its grip on the strait as a bargaining chip, seizing tankers and harassing ships it accuses of violating its waters. The latest escalation follows U.S. efforts to choke off Iran’s oil exports by targeting ships carrying its crude, a policy that has slashed Tehran’s revenues. Iran’s leadership now appears to be using the strait’s closure as leverage, demanding Washington lift sanctions that have crippled its economy in exchange for restoring safe passage. Analysts say Iran’s strategy is to force the U.S. into negotiations by disrupting global oil supplies, a gamble that risks further escalation.

The IRGC, which controls Iran’s military operations in the Gulf, has not specified what it considers an end to the U.S. blockade, but likely means the removal of sanctions imposed after former President Donald Trump abandoned the 2015 nuclear deal in 2018. Iran’s foreign ministry echoed the demand on Thursday, calling for "concrete steps" from Washington to ease restrictions. Meanwhile, the U.S. Fifth Fleet, based in Bahrain, has increased its presence, with warships escorting commercial vessels to deter Iranian interference. Last week, a U.S. destroyer fired warning shots at an IRGC boat that came dangerously close to an American ship in the strait.

If Iran refuses to back down, the standoff could trigger a sharp rise in oil prices and disrupt global trade. The U.S. has so far rejected direct talks, insisting sanctions will remain until Iran curbs its nuclear program. With neither side showing signs of yielding, the risk of miscalculation—whether an accidental clash or a deliberate escalation—remains high. The strait’s closure would not only strangle Iran’s economy but also send shockwaves through energy markets, affecting everything from gasoline prices to shipping costs worldwide.