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US and Iran Stalled in New York Negotiations Over Strait of Hormuz

US and Iran Stalled in New York Negotiations Over Strait of Hormuz

Indirect negotiations between the United States and Iran, facilitated by Qatari mediators on the sidelines of the United Nations General Assembly in New York, have reached another impasse. Despite ongoing dialogue aimed at ending a seven-month conflict, both nations remain firmly entrenched on opposing demands regarding the agenda and the reopening of the Strait of Hormuz.

Iranian Foreign Minister Abbas Araghchi departed New York on Tuesday, stating he anticipates an official response from Washington by the end of the day regarding Tehran’s proposal to reopen the strategic waterway within seven days. The proposal, initially conveyed through Qatari intermediaries last week, was reportedly rejected by President Donald Trump. Under the Iranian plan, the strait would be reopened only after the US lifted its naval blockade, waived sanctions, released approximately $12 billion in frozen assets, and enforced a broader regional ceasefire involving Lebanon. Furthermore, broader peace discussions, including those concerning Iran’s nuclear program, would commence only after these conditions were satisfied.

While US media outlets suggested Trump might be open to easing sanctions and unfreezing assets, the President firmly denied these reports. Instead, US officials emphasize a desire for a comprehensive agreement that resolves all outstanding issues, particularly the nuclear question, simultaneously rather than through a gradual, step-by-step process.

Araghchi clarified that recent talks with Qatari mediators focused exclusively on the Strait of Hormuz and denied that the US had formally rejected the Iranian offer. He described the negotiations as becoming more “serious” but insisted that Tehran’s stance remains unchanged. “Our conditions for opening the strait are clear… At present, there has been no discussion at all about flexibility,” Araghchi stated, noting that the proposal aligns with elements of the Islamabad memorandum of understanding signed by both nations on June 17.

Tensions have escalated as the US continues to apply economic pressure. In August, the US imposed additional sweeping sanctions on Iran and nations trading with it. Treasury Secretary Scott Bessent described the strategy as the “economic asphyxiation” of Iran. A 2025 study in The Lancet Global Health estimated that US sanctions contribute to over 564,000 deaths annually worldwide, though the exact toll on Iranians remains difficult to quantify.

Scott Lucas, a professor of US politics and international relations at University College Dublin, noted that Washington effectively demands Iranian surrender regarding the strait. He highlighted the disconnect between the Trump administration’s current approach and the June memorandum, which had granted Iran a role in managing the waterway. “The Iranian government is not going to agree to that, so we’re stuck in this limbo right now,” Lucas said.

From Tehran’s perspective, control over the Strait of Hormuz, which carries one-fifth of the world’s oil and natural gas, serves as its primary leverage. Ali Salehian of the Governance and Policy Think Tank in Iran argued that Tehran does not trust the US to honor future agreements given the failure to uphold the Islamabad MoU. “For Iran, the bottom line of every negotiation with Trump… is the Islamabad MoU,” Salehian explained.

Looking ahead, analysts predict the diplomatic standoff will persist. Both sides have expressed a preference for a settlement, yet Trump has threatened further strikes, while Araghchi warned that Iran is prepared to resume fighting, including a potential “doomsday war,” if aggrieved. Trump expects a deal only after the November 3 midterms, whereas some experts suggest Iran may prefer to restart hostilities before the elections to maximize political pain for the US president.

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