Iranian factions clash over Strait of Hormuz negotiations amid economic pressure
Three competing groups within Iran's regime are vying to shape talks with the United States, with the IRGC-led faction demanding full control of the Strait of Hormuz, while pro-negotiation officials seek a compromise to ease sanctions and economic hardship.
Iranian policymakers are divided over how to handle negotiations with the United States concerning the Strait of Hormuz. A faction led by senior Islamic Revolutionary Guard Corps (IRGC) commander Major General Ahmad Vahidi is currently steering policy and insists on retaining total control of the waterway, even as it has resumed attacks on shipping after a June memorandum of understanding failed to secure that outcome. An IRGC-affiliated outlet, Tasnim, argued that abandoning the strait would constitute a failure for Iran.
A second, more moderate group that includes President Masoud Pezeshkian, Foreign Minister Abbas Araghchi and Parliament Speaker Mohammad Bagher Ghalibaf favors negotiations that would preserve some degree of strait control while alleviating the economic damage caused by U.S. sanctions and a naval blockade. The group reportedly persuaded the supreme leader to accept the June memorandum and has warned of the war’s toll on Iran’s economy.
A third, smaller faction known as the Paydari Front, represented by Supreme Leader envoy Saeed Jalili, opposes any talks with the United States, invoking revolutionary principles to reject compromise.
Economic analysts note that the blockade has led to a collapsed rial, high unemployment and shortages of basic goods, fueling public protests such as a July 28 gathering in Esfahan Province. Iran’s top security council is aware of the risk of renewed anti-regime unrest.
Omani mediators have offered a 10-day truce that would reopen the strait in exchange for lifting the blockade and unfreezing Iranian assets, but Iran rejected the proposal, maintaining its demand to levy fees on shipping. Deputy Foreign Affairs Minister Kazem Gharibabadi reiterated that control of the strait is essential for Iran’s long-term security.
In related developments, the Houthi movement claimed a missile strike on a Saudi-flagged tanker on July 28, and Chinese officials reportedly sought Houthi assistance for safe passage of Chinese-owned tankers through the Red Sea. In Iraq, Iranian-backed militias denied Saudi accusations that attacks on Saudi oil facilities originated from Iraqi territory, while Iraqi authorities continue investigations.
"The strait is a very important indicator for assessing Iran’s success in war and any arrangement will ensure Iran’s long-term security," said Deputy Foreign Affairs Minister Kazem Gharibabadi.
"Iran is not afraid of any action to establish its sovereignty in the strait or of the resumption of war," he added.
These internal divisions and external pressures underscore the uncertainty surrounding Iran’s negotiating stance and the broader stability of the region.