US and Iran negotiate phased plan to reopen Hormuz and lift sanctions

Negotiators from the United States and Iran met in New York to explore a phased approach to ending the seven-month conflict that has seen Tehran block the Strait of Hormuz and Washington impose a broad economic blockade on Tehran. The proposed sequence would begin with Iran allowing commercial navigation through Hormuz, followed by the United States lifting sanctions and potentially releasing frozen Iranian assets.

A senior Iranian official said the most realistic solution would involve “solving the crisis in stages, the first being to end the blockade and reopen Hormuz,” speaking on the sidelines of the UN General Assembly. A White House spokesperson responded that Iran is “desperate for a deal,” but emphasized that President Trump “holds all the cards and will make whatever decision is best for the United States.”

Former U.S. negotiator Dennis Ross estimated a roughly 30 percent chance of reaching an agreement before the November midterm elections, noting that the blockade is “squeezing the Iranians” and that a pre-election deal could help ease Gulf tensions and stabilize oil prices. Analysts said both sides are reluctant to relinquish leverage: Washington controls the pressure on Iran’s economy, while Tehran controls access to a key energy chokepoint.

Regional officials indicated Tehran might drop its demand for transit fees for Hormuz navigation from the core agreement and treat it as a side issue, while Gulf states have rejected any payment scheme and insist on unrestricted navigation. The United States has recently expanded sanctions to target Iranian airlines and support networks, a move President Trump warned could cause Iran’s economy to “rot” without a deal.

The talks remain tentative, with both parties maintaining their fundamental positions. Observers noted that if an agreement is not reached before the midterms, the diplomatic window could narrow as the risk of escalation grows.