Iran’s Supreme National Security Council said Saturday that the Strait of Hormuz will not reopen until the United States “corrects its behavior,” and it tied any resumption of traffic to six demands delivered in a statement published by Iran’s state broadcaster. The statement, attributed to council secretary Mohammad Bagher Zolghadr, said the U.S. must accept the terms before Iran would reopen the waterway.
The six conditions are: that the U.S. never threaten Iran again; permanently end war against Iran and its regional allies; lift the maritime blockade on Iranian ports and withdraw from the region; provide “full compensation” for Iran’s war losses; remove sanctions; and unconditionally release frozen assets.
Deadline on a final deal is closing in
Under a temporary agreement signed in June, the schedule for sanctions relief and a compensation plan was supposed to be included in a final agreement, while the issue of frozen assets was left for later negotiations. The 60-day deadline for the final deal is set to expire in a little more than a week. An extension remains possible, but the time pressure has clearly increased.
Iran said it is also close to reaching another agreement with Oman on management of the strait, which lies between the two countries. Foreign Minister Abbas Araghchi said earlier Saturday that the sides were close to an agreement on navigation, “especially the designation of transit lanes.” He later wrote on social media that reopening the strait still depends on other conditions, and he blamed the current situation on what he described as U.S. violations of the temporary agreement.
Oman, serving as mediator, said in a statement Saturday that the talks were taking place in a “positive and constructive atmosphere.” It also condemned attacks on ships in the strait.
Traffic has fallen and oil prices have turned higher
According to OilPrice, only 33 ships passed through the Strait of Hormuz from Monday to Thursday this week, down from 50 in the previous week. Just six crude oil tankers were allowed to depart.
On Aug. 6, Iran published a restrictive draft plan for passage through the strait. It barred U.S. and Israeli vessels and said other countries that had harmed Iran would need to complete compensation first before being allowed through. Oil prices jumped the same day.
Brent crude was quoted at $83.55, up 1.29% on the day, while West Texas Intermediate crude traded at $78.18, up 1.15%. Earlier in the week, optimism that the strait might reopen had briefly pushed oil below $80. That rebound in prices has now erased that earlier optimism.
UAE accuses Iran of attacking a commercial vessel
Even as Iran discussed shipping arrangements with Oman, it was also accused of continuing attacks on vessels in the strait. UAE officials said a ship operated by Abu Dhabi state-owned oil and gas company ADNOC came under attack earlier Saturday while transiting the Strait of Hormuz. The UAE foreign ministry said the missile that struck the vessel was launched by Iran and was part of a broader campaign targeting commercial shipping.
ADNOC said no one was injured in this incident. The company also said that since the U.S. and Israel went to war with Iran in February, more than 10 ADNOC vessels passing through the strait have been attacked by missiles and drones, leaving one crew member dead and 20 injured. ADNOC did not disclose the exact location of the latest attack or the extent of the damage.
The UK Maritime Trade Operations office later said a ship east of Khasab, Oman, had been hit by a projectile and caught fire. The fire was extinguished, and both the vessel and its crew were safe. UKMTO said it could not confirm whether that was the same incident reported by ADNOC.
The U.S. government had not responded to Iran’s six demands as of publication. The U.S. position, as described in the source material, has been that an acceptable agreement on transit through the strait should come before any lifting of blockade measures against Iran.