Reopening of the Hormuz port by Iran in exchange for US concessions

The Strait of Hormuz is about to be reopened. However, the U.S. must meet certain conditions before it can do so, such as compensation, the end of'sanctions' and military threats and the lifting of the sanctions.

Since the U.S. and Israel attacks on Iran, on February 28, the strait has effectively been blocked, pushing up oil prices.

Esmaeil baghaei, a spokesman for the Iranian Foreign Ministry, said that on Monday talks with Oman regarding arrangements for navigation in the strait "progressed smoothly and constructively". An agreement was reached on a map of shipping routes. However, some technical issues relating to a joint declaration remained unresolved.

He stated during a press conference held in Tehran on a weekly basis that discussions included mechanisms for safe navigation and environmental protection as well as maritime services, crime prevention, and fighting.

Compensation is included in the conditions

Abbas Araqchi, Iran's foreign minister, said on Sunday that an agreement with Oman is in its final stages. He also stressed that Tehran will not reopen this channel until the U.S. meets certain demands.

Araqchi stated that Iran and the U.S. were not engaged in direct discussions, and Tehran would not initiate them as long Washington violates an interim agreement signed in June.

Donald Trump, the U.S. president, said in an Axios interview that the U.S. is "low-keying it" with Iran. "We only half-negotiate with them." "We are only watching Iran and its massive inflation, as well as the fact that they have no money."

Araqchi stated that reopening of the strait will depend on the U.S. compensating for the damage caused by its widespread attacks against Iran.

Mohammad Baqer Zolqadr - the outgoing secretary for Iran's highest national security body - also mentioned ending U.S. threat against Iran, stopping aggression towards Iran and its Lebanese and Palestinian allies, and its?Yemeni, Iraqi, and Lebanese allies, lifting a U.S. blockade of?the Gulf, and releasing Iranian assets that have been frozen.

Iran announced on Sunday that former Revolutionary Guards Commander Mohsenrezaei - seen as more outspoken than Zolqadr - would be the second-in command of the body which coordinates the nation's security policy and foreign affairs.

The change was made without explanation and it wasn't immediately clear whether it would signal a change in policy.

OIL EDGES ARE HIGHER

The price of oil rose to $84.22 per barrel on Monday, as the optimism about a deal that would open the Strait was dampened by Iran's demand that the U.S. meet its demands.

Brent oil reached $126 per barrel at the end of April. This is the highest price since 2022. Shipping disruptions continue.

Trump, who said that the attacks on Iran were meant to prevent the Islamic Republic developing nuclear weapons, and to degrade its ability to menace the region, faces pressure from his own people to end the war, which is unpopular in the United States ahead of the midterm elections scheduled for November.

Washington and Tehran agreed on a ceasefire agreement in June. However, the U.S. reinstated a blockade?on Iranian shipping within the Gulf of Mexico in July. This move was deemed by Tehran to be a violation of the truce which had by that time already been broken.

The United States will lift the blockade on Iranian ports once the deal to restore commercial shipping is announced.

Officials said that U.S. action would be dependent on Iran's ability to implement its commitments.

The U.S. comments showed a delicate sequence of events towards a deal, that according to sources appeared?to have been set up for Tehran to control vessel traffic entering into the Gulf via the strait. Shippers had said the deal was not easily feasible.

HOUTHI ASSASSINS

The Houthi rebels in Yemen have intensified their attacks on Iranian ships that are anchored at the Strait of Hormuz, a second oil chokepoint between the Red Sea, and Gulf of Aden, which is located on the Arabian Peninsula.

Houthis have also declared a naval blockade in the Red Sea against Saudi Arabia last?month as a response to what they claim is a Saudi siege in?Yemen. Riyadh has denied this allegation, and supports Yemen's internationally recognized government.

The fighting between Houthis forces and the government in Yemen has intensified. On Monday, the Yemeni army said that seven people were killed including military personnel and civilians in a Houthi assault on the Red Sea Port City of Mocha.

The military reported that air defences shot down 11 Houthi-made drones involved in the attack. Reporting by Nayera Abdallah, Steve Holland and Enas Alashray: Writing by Philippa Fletcher and Stephen Coates, Editing by Nick Zieminski, Alie Williams

(source: Reuters)