Iran's Revolutionary Guards say the Strait of Hormuz stays closed until Washington lifts sanctions and pays war compensation, and an Iranian lawmaker now says the country's armed forces have taken control of the waterway. Tehran and Oman are negotiating a bilateral shipping-lane split as President Trump says he is letting economic pressure, not renewed strikes, do the work of forcing a resolution.
Iran's Revolutionary Guards said Sunday that the Strait of Hormuz will stay closed until the United States meets a list of demands, including an end to sanctions and compensation for war damage, hardening Tehran's position even as President Trump described his approach to the standoff as low-key.
Tehran's Supreme National Security Council laid out the conditions on Saturday, including an end to the war on all fronts, the lifting of a US counterblockade on Iranian ports, the release of frozen assets and full compensation for wartime damage. The terms largely echo June's proposed $300 billion reconstruction fund for Iran. Tehran also wants to retain control of the strait after the war and charge tolls for passage, and has struck vessels it accuses of trying to bypass its preferred route, including a tanker hit Saturday.
Trump bets on economic pressure
Trump, in an Axios interview, framed the standoff as a waiting game: he said he is only semi-negotiating with Tehran and is counting on Iran's inflation and empty coffers to force a resolution, calling it a chess game that will eventually work out. He also noted oil trading just above $75 a barrel is easing pain for US consumers.
US officials say Tehran's new demands reflect a widening rift inside the regime, with President Pezeshkian's camp pushing for a deal while IRGC commander Vahidi's camp resists concessions. Despite the impasse, roughly eight million barrels a day continue moving through the strait's southern lane under informal coordination with the US military.
Tehran claims military control of the strait
An Iranian lawmaker has declared that the country's armed forces have taken control of the Strait of Hormuz, the waterway through which approximately 25% of global maritime crude oil trade passes. Iran and Oman are negotiating new shipping lanes; under the plan, inbound traffic would be routed through lanes favoring Iranian waters and outbound traffic through Oman's side.
A temporary 60-day deal has also been floated, contingent on the US lifting port blockades. Iranian legislators are pushing companion legislation that would grant the armed forces full control over the waterway, which US analysts say departs from established maritime norms.
Houthi allies open a second front
Iran's Houthi allies in Yemen opened a parallel blockade against Saudi Arabia's Red Sea ports. The Houthis said they struck a Saudi oil facility on the Red Sea coast on Sunday, and separate strikes on the port city of Mokha killed three civilians and eight military personnel and wounded 32 people.
Oman said talks on managing the strait were approaching their final stages, leaving room for de-escalation if a deal lands. Vice President Vance described the standoff as still in its middle stages, with diplomatic, economic and military tools all in play.
Sources: Investinglive: Iran vows Hormuz stays shut, Investinglive: Trump low-keying it, Crypto Briefing
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