US and Iran negotiate phased reopening of Hormuz and lift of economic blockade

In New York, US and Iranian delegations are exploring a multi-stage deal that would have Iran reopen the Strait of Hormuz while the United States removes its economic blockade and may unfreeze Iranian assets. The strait has become the focal point of bargaining, with Iran seeking relief from sanctions that are strangling its economy and the US demanding free passage for global oil shipments. A senior Iranian official outlined a phased approach, beginning with the blockade’s end, and suggested Tehran could defer transit-fee demands to a side attachment.

President Donald Trump has signaled interest in reaching an agreement before the November midterm elections, seeing potential benefits for Gulf stability and US gasoline prices. Former negotiator Dennis Ross estimates a modest chance of a pre-midterm deal, noting that the blockade’s pressure may push Iran toward escalation if concessions are not secured. Gulf states have warned against any Iranian control of Hormuz, while regional analysts say the leverage each side holds makes compromise difficult and the diplomatic window could narrow if talks stall.