Story
Iran Says Hormuz Strait Deal in 'Final Stages' but Demands U.S. Concessions for Reopening

Summary
Iran reports a deal with Oman to establish new shipping lanes in the Strait of Hormuz is nearly complete, but states the critical waterway will not reopen until the U.S. lifts sanctions, pays compensation, and meets other key demands.
Iran announced on Sunday that an agreement with Oman to define new shipping lanes in the strategic Strait of Hormuz is in its final stages. However, officials reiterated that the vital waterway, which Iran previously blocked, would only reopen after the United States meets a series of demanding conditions.
Details of the Potential Agreement
The deal, brokered with Oman, would establish new maritime routes through the strait, a chokepoint for approximately a fifth of global oil and liquefied natural gas (LNG) shipments before its closure. Iranian Foreign Minister Abbas Araqchi confirmed the agreement was in its "final stages" but emphasized it lays the groundwork for operations *after* U.S. conditions are met, according to Iran’s Mehr news agency.
Direct negotiations between Tehran and Washington are not occurring. Araqchi stated that messages are being passed through intermediaries, as Iran will not engage in talks while the U.S. is in breach of an interim deal signed in June.
Iran's Conditions for Reopening
Iranian officials have publicly outlined several significant concessions required from the United States before commercial shipping can resume through the strait. Mohammad Baqer Zolqadr, the secretary of Iran’s top national security body, listed a comprehensive set of demands, including:
Ad- U.S. compensation to Iran for damages from widespread attacks.
- A complete end to U.S. threats and aggression against Iran and its regional allies.
- The lifting of all U.S. sanctions and the blockade on Iran.
- The release of all frozen Iranian assets.
An anonymous U.S. official told Reuters on Friday that Washington would lift its blockade of Iranian ports once a deal is announced to restore shipping. However, the official stressed that U.S. actions would be directly tied to Iran’s implementation of its commitments, suggesting a complex and delicate sequencing of events is still under discussion.
Broader Regional Tensions
The diplomatic maneuvering occurs amid heightened regional conflict. Iran's allies, the Yemen-based Houthis, claimed responsibility for a drone attack on Saudi Aramco’s Jazan refinery on Sunday. The Saudi energy ministry confirmed a fire at the facility, which processes 400,000 barrels of crude oil per day, but reported no injuries.
This follows increased Houthi attacks on shipping in the Red Sea and a new defense pact signed by Saudi Arabia, Turkey, and Pakistan. Separately, the United Arab Emirates said Saturday that Iran had attacked a ship affiliated with its state oil company, a claim Tehran has not immediately commented on.
Read next
More on Commodities
US-China Summit to Tackle Key Commodity Disputes in Agriculture, Energy
The upcoming meeting between President Trump and President Xi is expected to focus on resolving trade frictions involving U.S. agricultural exports, Chinese energy tariffs, and the supply of critical rare earth materials.

Citi Warns Hawkish Fed Policy Threatens Non-AI Economic Growth
A recent report from Citi Research warns that the Federal Reserve's hawkish monetary policy could suppress the U.S. housing market and make the broader economy dangerously dependent on AI investment.

Petrobras Board Approves Participation in New Government Diesel Subsidy Program
Brazil's state-run oil company, Petrobras, will join a new government program providing a 1.00 real per liter subsidy on diesel, a move aimed at stabilizing fuel prices ahead of the upcoming presidential election.

Oil Prices Retreat as China Urges Iran to Curb Houthi Attacks on Saudi Facilities
Crude oil futures fell on Friday after reports that China, at Saudi Arabia's request, pressured Iran to rein in Houthi attacks, easing some geopolitical supply fears. However, ongoing pipeline disruptions and refining constraints continue to support the market.