Iran has offered to reopen the Strait of Hormuz to commercial shipping if Washington ends its naval blockade of Iranian ports, releases $15 billion in frozen funds and lifts sanctions that have restricted Tehran’s access to global markets for years.
Kazem Gharibabadi, Iran’s deputy foreign minister, said Tehran was ready to restore passage through the waterway, but only under terms that treat Iran as a beneficiary of Gulf commerce rather than a country excluded from it. His comments placed the world’s most sensitive energy chokepoint at the centre of a wider negotiation over war damages, sanctions relief and the limits of United States pressure on Tehran.
“Iran is ready to open the Strait of Hormuz,” Gharibabadi said, while arguing that the country could not permit normal shipping after a 40-day war that, by Tehran’s count, has killed 4,000 Iranians, including civilians. “We can’t be good guys, we can’t allow the Strait of Hormuz to be opened and ships to sail smoothly… Hormuz can’t be opened for the whole world except Iran,” he said.
The remarks sharpened a diplomatic standoff that has already unsettled oil, gas and freight markets. The Strait of Hormuz links the Gulf with the Gulf of Oman and the Arabian Sea, carrying a large share of the world’s seaborne oil and liquefied natural gas. Qatar, Kuwait, Bahrain, Iraq and parts of the UAE’s energy trade remain heavily exposed to the route, while Saudi Arabia and the UAE have more options through pipelines and alternative export terminals, though not enough to offset a prolonged disruption.
Tehran’s position reflects a shift from a simple threat to close the strait towards a strategy of conditional access. Iran has sought to frame the waterway as leverage against military pressure, financial sanctions and restrictions on its oil trade. Ships linked to states with separate understandings with Tehran have been allowed limited movement, while broader commercial traffic remains exposed to inspections, delays and uncertainty.
The United States has insisted that any reopening must be verifiable, durable and separated from what it views as coercive demands. Washington has also continued to target networks accused of helping Iran sell oil through intermediaries, including companies and individuals linked to shipments to China. That has reinforced Tehran’s argument that the naval blockade and financial sanctions form part of the same pressure campaign.
The frozen funds demand is likely to be one of the most difficult points in any settlement. Iran argues that the money belongs to its people and should be released as part of a package to stabilise the Gulf. United States officials have long maintained that sanctions-linked restrictions are tied to Tehran’s military activity, nuclear programme and support for armed groups across the region.
Energy traders are watching the negotiations closely because even partial reopening of Hormuz could ease pressure on crude benchmarks and LNG cargoes. A prolonged blockage, by contrast, would intensify competition for supplies outside the Gulf, push shipping insurance costs higher and force importers in Asia and Europe to rely more heavily on alternative cargoes from the United States, Africa and other producers.
The dispute has also placed Gulf governments in a difficult position. They need uninterrupted access to shipping lanes but are wary of steps that could deepen confrontation with Tehran. Several regional capitals have backed diplomacy while strengthening maritime security and exploring emergency supply arrangements. Pakistan and Iraq have emerged as important intermediaries because of their energy exposure and channels with Tehran.
Gharibabadi’s comments indicate that Iran wants negotiations to proceed in phases. The first would focus on ending the war, lifting the port blockade and restoring access to frozen assets. Sanctions and nuclear issues would follow, with Tehran seeking guarantees that any reopening of Hormuz would not leave it vulnerable to renewed economic isolation.
