The United States and Iran have introduced new demands during ongoing negotiations aimed at reopening the Strait of Hormuz, a critical waterway through which one-fifth of the world's oil and liquefied natural gas supplies were shipped before the US-Israel conflict with Iran began in late February 2026. These developments have cast doubt on the possibility of a wider peace deal to end their five-month war.

While the US claims direct involvement in the talks, Iran states it is negotiating only with Oman, proposing to share future management of the strait with the Gulf nation. Tehran's Foreign Minister Abbas Araghchi said negotiations with Oman over a new shipping arrangement, including defining new shipping lanes, have progressed to their "final stages."

On Monday, US President Donald Trump announced he would demand compensation from Iran for deaths and injuries linked to conflicts over several decades. This followed Iran's recent demands for reparations related to the war and its refusal to reopen the strait until Washington meets its political and economic conditions. Trump also posted on his Truth Social platform that Iran should compensate families of the 17 US sailors killed in the October 2000 attack on the USS Cole in Yemen, an attack attributed to al-Qaeda rather than Iran.

Experts suggest that broader peace negotiations between the US and Iran are unlikely to resume until the Strait of Hormuz issue is resolved. Al Jazeera’s correspondent Tohid Asadi reported from Tehran that "the two sides are further apart" and growing more distant regarding any diplomatic settlement.

The ongoing closure of the Strait of Hormuz has led to surges in oil prices and stock markets, reflecting the global economic impact of the stalled talks.

Sources