US-Iran talks seek to restart Strait of Hormuz, both sides discuss phased arrangements

BlockBeats news, September 25 — According to sources close to U.S.-Iran negotiations, U.S. and Iranian negotiators are in New York exploring a phased solution that includes Iran reopening the Strait of Hormuz shipping corridor and the United States lifting its economic blockade on Iran.

People familiar with the matter said the Strait of Hormuz has become the core bargaining chip in ending the nearly seven-month U.S.-Iran conflict. Iran recognizes the economic pressure brought by prolonged confrontation and is considering a phased arrangement, with the first step possibly being the restoration of Hormuz shipping while the U.S. eases its economic blockade, and Iran potentially securing a partial unfreezing of its frozen assets. However, neither side is willing to be the first to give up its leverage, which has become the biggest obstacle in the negotiations.

Iranian officials said Tehran is more focused on lifting the blockade than on insisting on collecting Hormuz transit fees in an agreement. Regional sources said Iran may place its transit fee demand in a side document rather than as part of the main agreement, but this does not mean it is abandoning its position on managing the strait. Analysts believe the U.S. hopes to use pressure to force Iran to make concessions, while Iran wants pressure lifted before making commitments.

Former U.S. Iran negotiator Dennis Ross said the probability of reaching an agreement before the November midterm elections is limited, but both sides have incentives to push negotiations forward before the elections, because reopening Hormuz could ease Gulf tensions and reduce oil price pressure. Gulf states currently hope to restore freedom of shipping and avoid the strategic waterway becoming a long-term tool of rivalry, while also pushing the U.S. and Iran to de-escalate through diplomacy.