US, Iran discuss ‘phased deal’ to reopen Hormuz and end US blockade

WASHINGTON: The United States and Iran are exploring a possible phased agreement aimed at ending their conflict, with negotiations reportedly focusing on reopening the Strait of Hormuz and easing US economic restrictions on Tehran.

According to Reuters, Iranian, regional and Western sources said negotiators were examining a framework under which Iran would reopen the strategic waterway while the United States would ease its economic blockade and provide access to frozen Iranian assets.

The talks remain difficult because neither side wants to give up its main source of leverage before receiving concessions from the other.

Iran has indicated flexibility on some economic issues, while the status of the Strait of Hormuz remains one of the central points of disagreement.

The Strait of Hormuz remains a crucial part of the discussions because of its importance to international energy shipments.

Recent shipping activity has increased, with around 60 commercial vessels reportedly passing through the waterway on Wednesday, including vessels that coordinated with the US military for protection. Reuters reported that the day’s traffic represented the highest daily crude-oil volume through the strait since early July.

A phased agreement could therefore involve reciprocal steps rather than requiring either side to make all concessions at once.

The discussions are also taking place against the backdrop of the Islamabad Memorandum of Understanding, a US-Iranian interim agreement signed in June with Pakistan acting as a witness and mediator.

The memorandum provided a framework for ending military operations, easing restrictions and negotiating a broader settlement, including arrangements concerning the Strait of Hormuz.

Pakistan has continued to support implementation of the Islamabad understanding. Prime Minister Shehbaz Sharif also stressed the importance of implementing the memorandum during his meeting with Iranian President Masoud Pezeshkian in New York.