US and Iran discuss phased deal to reopen Hormuz and end US blockade
USO•US and Iranian negotiators are exploring a phased arrangement that would reopen the Strait of Hormuz and lift the US economic blockade of Iran. Sources say Iran may defer its demand for transit fees, while a former US negotiator estimated a 30% chance of an agreement before the November 3 midterm elections.
1. Phased proposal
US and Iranian negotiators in New York are exploring a phased path out of nearly seven months of conflict, with Iran allowing navigation through the Strait of Hormuz in return for the US lifting its economic blockade. A senior Iranian official said the arrangement could also involve Tehran gaining access to frozen assets.
2. Leverage and timing
Neither side wants to give up its leverage without receiving something tangible, sources close to the talks said. Former US negotiator Dennis Ross put the chance of an agreement before the November 3 midterms at 30%, while saying both sides may have stronger reasons to make a deal before than after the vote.
3. Transit fee dispute
Regional sources said Tehran was willing to move its demand for Hormuz transit fees out of the main agreement and into a side attachment, as ending the blockade had become more urgent. Gulf states reject Iranian control of the strait and have said freedom of navigation must be restored.
