Iran Says Strait of Hormuz to Remain Shut Until U.S. Meets Deal Demands

Iran will keep the critical Strait of Hormuz closed to shipping until the United States meets several conditions laid out in a now-suspended interim deal, a top negotiator announced Tuesday. The statement, published by state media, signals a hardening stance in the ongoing conflict and raises the stakes for global energy markets.

Iran's Conditions for Reopening

Speaking to parliament, top Iranian negotiator Mohammad Baqer Qalibaf outlined the specific prerequisites for reopening the vital waterway. According to the report, Iran is demanding that the U.S. take the following actions:

• Lift its blockade of Iranian ports.
• Remove all sanctions on Iranian oil.
• Release Tehran’s frozen financial assets.
• End all threats and military operations.

These conditions are tied to a memorandum of understanding (MoU) that was signed by both nations on June 17 but quickly fell apart.

Breakdown of Diplomatic Efforts

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The June agreement was intended to pave the way for a final deal within 60 days but unraveled amid disputes over control of the strait. On July 7, U.S. President Donald Trump declared the deal was "over," and a week later, Iran’s foreign ministry officially announced it was "suspended."

The latest comments from Tehran follow a report from a senior Iranian official on Monday, who told Reuters that Iran would shift to a "fully offensive" posture due to the stalled diplomatic efforts.

Market Implications

The Strait of Hormuz is a strategic chokepoint for global energy supplies. Before the conflict, approximately a fifth of the world's oil and liquefied natural gas (LNG) transited through the narrow channel, making its accessibility crucial for market stability.

The continued closure and Iran's increasingly assertive posture introduce significant uncertainty and potential volatility into oil and gas prices. An extended blockage of this key artery could disrupt supply chains and place upward pressure on global energy costs, elevating geopolitical risk for investors and energy traders.