Strait of Hormuz Standoff: US-Iran Peace Talks Remain Deadlocked

Tensions in the Strait of Hormuz remain high as Iran continues to challenge US assertions of authority over the vital maritime corridor. While the United States maintains that the waterway is open, Tehran insists it remains under its management and will stay blocked until specific demands regarding sanctions, reparations, and perceived aggression are addressed.

President Donald Trump reiterated on Wednesday that the US maintains “total control” of the region. However, Iran’s Persian Gulf Strait Authority (PGSA) dismissed these claims in a statement on X, asserting that official US narratives do not reflect the reality on the ground. The authority emphasized that the blockade will persist until Iranian conditions are satisfied.

The strategic importance of the strait cannot be overstated, as it typically facilitates the transit of one-fifth of the world’s oil and liquefied natural gas supplies. Despite the rhetoric from Washington, shipping traffic has plummeted to a one-week low due to the ongoing Iranian restrictions. Iranian forces are actively preventing vessels from navigating the passage unless they receive explicit approval, impacting waters shared by Iran and Oman.

The US has responded by maintaining a naval blockade around Iranian ports. On Tuesday, American forces intercepted a Panama-flagged ship in the Gulf of Oman, alleging the vessel failed to heed warnings while heading toward an Iranian port. Foreign Minister Abbas Araghchi criticized these actions on Thursday, accusing the US of suffering from “intelligence failures” and describing the naval maneuvering as a significant miscalculation.

Araghchi further remarked that “worse than fake news is fake intelligence.” This sentiment was echoed by Hojjatoleslam Hossein Taeb, commander of the Basij Organisation, who stated that the strait is currently under the “management and control” of the Islamic Republic, claiming the US has witnessed the power of the Iranian revolution firsthand.

Direct communication between Washington and Tehran regarding the waterway has ceased. Instead, Iran is engaged in separate discussions with Oman, proposing a shared management model for the future. Qatar has emerged as a key mediator, with Foreign Ministry spokesman Majed al-Ansari noting on Tuesday that these negotiations have reached an “advanced stage” and that the goal is to resume commercial shipping while addressing the security concerns of both Iran and Oman.

The current impasse stems from the collapse of a June 17 memorandum of understanding, which initially sought to keep the strait open for 60 days. Disagreements over shipping routes, the legality of transit fees, and renewed hostilities—including US-led strikes on Tehran on February 28—derailed the agreement. Iran maintains that it cannot trust US commitments following these escalations.

Pakistan has also stepped into a mediation role, with Interior Minister Mohsin Naqvi conducting talks in Tehran this week to facilitate a return to the negotiating table. These efforts follow earlier, unsuccessful attempts at diplomacy, including face-to-face meetings in April between US Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf in Islamabad.

The diplomatic landscape is further complicated by President Trump’s recent demand for compensation for “50 years” of alleged damages caused by Iran, including the loss of US personnel and civilian protesters. Trump claimed that 52,000 people have died in Iran over the last four months, a figure that contrasts sharply with Tehran’s report of 3,117 deaths during January protests and the 7,000 reported by the Human Rights Activists News Agency (HRANA) in February.

Analysts suggest that the US may eventually need to concede to some of Iran’s demands to avoid further regional escalation. Alan Eyre of the Middle East Institute noted that the Iran-Oman talks are currently the only significant diplomatic channel active, as Tehran views direct engagement with the US as futile.

Negar Mortazavi, a senior fellow at the Center for International Policy, highlighted that the primary uncertainty is whether the aggressive posturing from both sides represents genuine red lines or merely opening negotiating positions. She warned that without a compromise, the strait could remain restricted, potentially transforming the standoff into a long-term, open-ended conflict.

As of late last week, Iran’s Supreme National Security Council has formalized a new set of conditions that the US must meet to break the current deadlock. With international pressure mounting, the focus remains on whether mediators can bridge the gap between the two nations before the situation deteriorates further.

Iran fired on some ships it said had not followed its permitted route, leading to a renewal of hostilities with the US.

Iran says it is not speaking directly to the US because it has violated the June 17 MoU by restarting strikes on Iran in July.

On June 17, the two sides remotely signed the MoU, which was supposed to kick-start a 60-day negotiation process.

As a result, the strait – which was fully and freely open to all shipping before the US launched its war on Iran – has become the main obstacle to the progression of wider peace talks.

Now, Pakistan is making efforts to mediate peace talks.

However, various disagreements prevented that process from getting off the ground, and talks have stalled since then.

Iran says it is not worth talking directly because it “can’t count on anything the US says”, Eyre said.

“If both sides are prepared to compromise, there is still a path towards ending the conflict and reopening the strait,” Mortazavi told Al Jazeera on Wednesday.

The six conditions include an end to US threats against Iran and insults to what Zolghadr described as the country’s national and religious values; a permanent end to attacks against Iran and its allies in Lebanon, Palestine, Yemen and Iraq; the lifting of the US naval blockade and withdrawal of naval and air forces from around Iran; compensation for damage from what he called two “imposed wars”; the lifting of

sanctions; and the unconditional release of frozen Iranian assets.

Trump told reporters at the White House on Monday that his administration was going to seek payment for “50 years” of damage caused by Iran, framing the move as a direct response to Tehran’s claims.

Tehran says some 3,117 people died in antigovernment protests that swept the country in January, prior to the launch of the US-Israel war.

In February, the US-based Human Rights Activists News Agency (HRANA) reported about 7,000 deaths, including 6,500 protesters.

On Thursday, Al Jazeera’s Tohid Assidi reported, citing observers, that Iran is focused on two primary issues.

“First was the security assurances Iran sought, ensuring that a reached deal could pave the way for a period of stability in the country,” Assidi said.

“Second were economic concerns, primarily articulated in demands for the US naval blockade to be removed and sanctions frozen, which represented the key demands coming from the Iranian side,” he added.

The US media have reported that concerns over dwindling defensive munitions have contributed to Trump’s decision not to carry out his threatened large-scale strikes against Iran.