Iran Sets Five Conditions for Reopening Strait of Hormuz as US Shifts to Economic Pressure

Iran's Supreme National Security Council has issued five conditions for reopening the Strait of Hormuz, a critical waterway carrying roughly 20 percent of global oil and natural gas supplies. Secretary Mohammad Bagher Zolghadr, who also commands a division within the Islamic Revolutionary Guard Corps, stated Saturday that the U.S. must end its naval blockade, withdraw military forces from the region, lift sanctions, release frozen Iranian assets, and provide war reparations before the strait will reopen. Zolghadr also demanded that the U.S. cease all threats and military action against Iran and its regional allies.

In parallel, Iran and Oman are pursuing separate talks on strait management, with Foreign Minister Abbas Araghchi saying Saturday they are "very close" to an agreement on transit routes. However, both Iranian officials stressed that reopening the waterway depends on U.S. compliance with a June memorandum of understanding between Iran and the United States. Araghchi stated on Sunday that no direct negotiations with the U.S. are currently underway; instead, the two sides are exchanging messages through intermediaries. Oman's foreign ministry described the Iran-Oman discussions as proceeding "in a positive and constructive atmosphere."

President Trump responded to Iran's demands by signaling a shift in U.S. strategy. In a Sunday phone interview with Axios, Trump stated "we are low keying it" and "only semi-negotiating" with Iran, emphasizing economic pressure rather than military escalation. He claimed Iran faces severe economic difficulties, including inability to pay military personnel, and suggested the U.S. strategy will eventually "work out" without detailing further action. Vice President JD Vance told Fox News on Saturday that the U.S. is applying "diplomatic, economic, military tools" to achieve its objectives, describing the conflict as in "the middle of the game."

According to Wall Street Journal reporting, Trump had privately indicated willingness to declare victory and exit the conflict if Iran reopened the Strait of Hormuz, even without securing a nuclear agreement. However, Iran's escalated demands have complicated this exit strategy. U.S. officials told Reuters that the blockade will be lifted only once a deal to restore unimpeded commercial shipping is announced, reversing the sequence Iran has demanded.

The 60-day negotiation window for a final agreement expires in approximately one week, though it may be extended. Meanwhile, military concerns persist: the U.S. has reportedly exhausted nearly 80 percent of interceptors for a key missile defense system during the conflict, now in its sixth month. The Pentagon has asked defense contractors to rapidly increase weapons production to replenish depleted munitions stockpiles.