Iran reviews U.S. reply on Hormuz reopening as shipping talks remain stalled

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Iran reviews Hormuz reopening talks

Highlights

Iran continues reviewing the U.S. response on reopening the Strait of Hormuz, with talks stalled since mid-September over unmet Iranian conditions.
Washington's demand to address Iran's nuclear program before reopening Hormuz remains a key stumbling block, prolonging pressure on global oil and LNG shipping routes.
Iran expresses conditional support for Saudi-Yemeni dialogue, stating willingness to back any agreement but emphasizing missed opportunities under the UN roadmap.

Negotiations over Hormuz access and war terms

As reported by BusinessWorld, citing Reuters, Iranian foreign ministry spokesperson Esmaeil Baghaei says Tehran is still examining the U.S. response and will reply to Washington through intermediaries after the review ends.

Baghaei also says Iran continues to exchange messages through intermediaries, without giving further detail. Qatar and Pakistan are among the countries that have acted as mediators in efforts to end the war that begins with U.S. and Israeli strikes on Iran on February 28.

After a June interim ceasefire crumbled and intermittent strikes resumed, Iran presented its proposal in mid-September and later confirmed it had received a U.S. response. The process has since stalled, with Iran's security chief saying on Sunday that Washington's reply does not sufficiently address Tehran's seven conditions for reopening the strait and returning to negotiations.

Energy trade risks and wider regional tensions

A central point of disagreement is Washington's insistence on addressing Iran's nuclear program from the outset. Tehran says talks should first focus on reopening the Strait of Hormuz and restoring security in the waterway.

The waterway remains a critical route for energy markets because it carried about a fifth of global oil and LNG trade before the war. Any delay in reopening or securing the passage keeps pressure on regional shipping and broader fuel supply chains.

Baghaei also reiterates Tehran's willingness to help resolve the escalating conflict between Saudi Arabia and Yemen's Houthis, an Iranian ally, through dialogue. He says the Yemen issue should have been resolved earlier under the UN roadmap and that Iran would support any agreement reached by Yemenis and Saudis.

Our earlier article on big oil returning to Iraq amid rising U.S.-Iran conflict explained how major producers like Chevron were reopening contract talks despite a deteriorating regional security backdrop. We noted that companies were increasingly weighing elevated geopolitical risk against the prospect of stronger returns, underscoring how the war environment is reshaping energy investment decisions across the Middle East.

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