Iran has issued extensive demands, including lifting sanctions and U.S. military withdrawal, for reopening the Strait of Hormuz, following an alleged missile strike on an ADNOC vessel. These conditions underscore heightened regional tensions impacting global energy markets, as separate negotiations between Iran and Oman aim to manage navigation amid varying U.S. assessments of an imminent deal.
In a significant escalation of regional tensions, Iran has outlined extensive demands for the United States to facilitate the reopening of the crucial Strait of Hormuz. These conditions, revealed on Saturday, come shortly after an alleged missile strike targeted an Abu Dhabi National Oil Company (ADNOC) vessel transiting the vital waterway.
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Mohammad Bagher Zolghadr, Secretary of Iran's Supreme National Security Council, stated that Washington must lift its naval blockade and sanctions, withdraw all U.S. military forces from the region, pay war reparations, and release frozen Iranian assets. Furthermore, Iran demands an end to U.S. attacks on its regional allies and an cessation of threats against the Islamic Republic.
While CNBC has not independently verified these sweeping demands, they underscore the volatile geopolitical landscape surrounding the world's most critical oil transit chokepoint. The White House has yet to comment on Iran's pronouncements.
The Iranian statement followed closely on the heels of an incident where ADNOC confirmed that one of its vessels was targeted by a missile in the Strait of Hormuz. The company reported no injuries and stated the situation was brought under control. The United Arab Emirates (UAE), of which Abu Dhabi is the capital, vehemently condemned the attack.
The UAE Ministry of Foreign Affairs condemned in the strongest terms the targeting of an ADNOC-affiliated tanker while it was passing through the Strait of Hormuz.
Meanwhile, parallel discussions are reportedly underway between Iran and Oman, two nations bordering the strait, to manage navigation. Iranian Foreign Minister Abbas Araghchi indicated that an agreement on transit routes, specifically the determination of a transit route, was close to being finalized. Oman confirmed these discussions were constructive while condemning attacks on shipping.
U.S. Vice President JD Vance, in a Fox News interview, noted that Iran and its Gulf neighbors, particularly Oman, were discussing measures for safe passage, including a traffic scheme, demining, and a commitment from Iran to refrain from attacking commercial vessels. Vance, however, emphasized, "We don't trust. We verify," highlighting the U.S. stance that Iran would be judged by its actions.
The closure of the Strait of Hormuz, which was an open international waterway before the U.S.-Iran conflict began on February 28, has triggered a global energy supply shock, contributing to surging gas prices, exacerbated inflation, and concerns over dwindling oil reserves.
Despite previous indications from the Trump administration, including Treasury Secretary Scott Bessent and Secretary of State Marco Rubio, that an agreement to reopen the strait was imminent, a deal has yet to be announced. Sardar Mohbi, a spokesman for Iran's Islamic Revolutionary Guard Corps, clarified via Telegram that the reopening of the Strait of Hormuz is "subject to the specific mechanism and conditions of the Islamic Republic of Iran and has nothing to do with the negotiations between Iran and Oman."
Market data reflects the ongoing uncertainty, with ship traffic through Hormuz reportedly down 33% on Friday compared to the previous day, and most vessels opting for the Iranian route, according to Kpler.
A recently published draft plan by Iranian state media, currently under review by Iran's parliament, proposes to restrict traffic through Hormuz. This plan would specifically ban U.S. and Israeli ships, and prohibit vessels from other nations deemed to have harmed Iran until reparations are paid.
Amidst these developments, oil prices reacted to the volatility. Brent crude futures gained over 1% to close at $83.55 a barrel, while U.S. West Texas Intermediate advanced about 1% to settle at $78.18 per barrel, even as prices saw a weekly decline of more than 7%.
The recent truce following a June 17 memorandum of understanding between the U.S. and Iran has given way to weeks of renewed attacks and counterstrikes, with Iran targeting several Gulf neighbors.
Iran's chief negotiator, Mohammad Bagher Ghalibaf, criticized what he termed "theater diplomacy" by the Trump administration, particularly after President Trump's claims of an imminent deal and calling off planned strikes.
"'Massive attack coming … wait, never mind, they want to negotiate.' That's theater diplomacy on loop," Mohammad Bagher Ghalibaf, Iran's parliament speaker and top negotiator, wrote in a post on X on Thursday in an apparent gibe at Trump.
The conflict continues to broaden, posing ongoing threats to Gulf energy infrastructure and critical shipping lanes.
— Anniek Bao, Kevin Breuninger, Emma Graham, Spencer Kimball, Justina Lee and The Associated Press contributed to this story.
