US-Iran Talks Explore Phased Deal to Reopen Strait of Hormuz

US and Iranian negotiators are exploring a phased plan that could reopen the Strait of Hormuz and ease Washington’s economic blockade of Iran, according to sources familiar with the talks.

The discussions are taking place in New York on the sidelines of the United Nations General Assembly. The strategic waterway has become a central issue in efforts to find a diplomatic route out of the conflict.

The Strait of Hormuz carries a major share of global oil shipments. Its closure has therefore increased pressure on regional energy markets and shipping routes.

Phased Approach Under Discussion

Two Iranian sources, two regional officials and two Western diplomats told Reuters that a staged arrangement was among the options being discussed.

Under the proposal, Iran could allow ships to pass through the strait. In return, Washington could ease or end its blockade. The arrangement could also involve access to frozen Iranian assets, according to the sources.

A senior Iranian official said the crisis could be addressed in stages. The first step, according to the official, would involve ending the blockade and reopening Hormuz.

The talks face a major obstacle. Neither side appears willing to make the first concession.

Iran wants economic pressure reduced before making wider commitments. Washington, meanwhile, is seeking concessions from Tehran as part of its pressure campaign.

Trump Administration Faces Diplomatic Choice

Any interim agreement would require US President Donald Trump to accept another temporary arrangement.

A previous understanding between Washington and Tehran collapsed in July. Trump has also indicated that a broader agreement may come after the US midterm elections in November.

A senior European official said Iranian negotiators had arrived in New York with extensive demands.

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The White House has shown limited urgency over reaching an immediate agreement. A US official said Trump believed Washington held significant leverage because of its sanctions and blockade.

Former US negotiator Dennis Ross estimated the chances of a deal before the midterms at about 30 per cent. He also said both sides had reasons to reach an agreement sooner.

Iran Signals Flexibility on Transit Fees

Tehran is also weighing changes to its position on shipping fees.

Regional sources said Iran could drop or postpone its demand for transit fees on vessels using Hormuz. The priority, they said, was securing an end to the blockade.

An Iranian official said Tehran’s main concern was maintaining administrative control over the waterway. The issue of transit fees could therefore be deferred.

Iran has also warned that military escalation remains possible if diplomatic efforts fail. The senior Iranian official said Tehran was prepared for renewed conflict while continuing to explore negotiations.

Gulf States Seek Clarity

Gulf countries are also closely watching the negotiations.

Leaders from the region pressed Trump in New York for greater clarity about his strategy after the US midterm elections. They also sought assurances about possible military action if negotiations fail.

Gulf states have rejected Iranian control over the Strait of Hormuz. They have called for freedom of navigation and opposed the use of the waterway as a tool of pressure.

At the same time, regional governments are urging de-escalation. They want to avoid becoming further involved in the conflict.

Ebtessam al-Ketbi, president of the Emirates Policy Center, said uncertainty remained over Washington’s longer-term strategy.

Former US negotiator Alan Eyre also warned that economic pressure could produce a harder Iranian response instead of diplomatic concessions.

80 Countries Call for Gulf Shipping to Resume

Diplomatic pressure increased at the United Nations on Thursday.

A coalition of 80 countries called for the restoration of maritime navigation in the Gulf. Bahrain’s Foreign Minister Abdullatif bin Rashid al-Zayani read the joint statement to journalists.

The statement called for navigational rights to be restored without delay.

The appeal comes as restrictions on shipping and aviation add to the economic pressure surrounding the conflict.

UAE Suspends Iranian Airline Flights

The United Arab Emirates has also tightened restrictions on Iran.

The UAE General Civil Aviation Authority announced on September 24 that it had suspended flights operated by Iranian airlines to and from the country until further notice. The authority linked the decision to US restrictions on Iranian airlines.

The measure affects an important aviation link. Dubai has long served as a major destination for Iranian airlines and passengers.

The UAE move followed new US sanctions targeting Iran’s aviation sector. Reuters reported that Iranian airlines were also barred from neighbouring countries, including the UAE and Oman, as the new US measures took effect.

The UAE Central Bank has separately restricted transactions involving Bank Melli Iran. The move cited compliance concerns involving money laundering, terrorism financing and arms proliferation.

Iranian airlines have faced growing difficulties operating international routes. Several neighbouring countries have introduced restrictions, while some smaller carriers continue to operate to destinations including Armenia and China.

The developments add another layer of pressure as Washington and Tehran explore whether a phased diplomatic arrangement can reopen Hormuz and reduce the economic confrontation.