Iran has outlined conditions for reopening the Strait of Hormuz, demanding an end to U.S. “acts of aggression,” lifting the naval blockade, and releasing frozen assets. These demands were conveyed through a Qatari mediator in New York.
President Trump indicated a potential deal might follow the U.S. midterm elections, following a recent meeting with Iranian envoys. Meanwhile, oil prices have seen a slight decline on hopes of a diplomatic resolution.
Iran has put forth specific conditions for the reopening of the critical Strait of Hormuz, signaling a potential diplomatic off-ramp to a seven-month conflict. These demands were communicated to the U.S. through a Qatari mediator in New York.
According to Iranian foreign ministry spokesman Esmaeil Baghaei, Tehran's conditions include an immediate cessation of U.S. "acts of aggression," the lifting of the naval blockade, an end to economic warfare, and the release of frozen Iranian assets. The proposal aims to restore normal traffic through the Strait of Hormuz, a vital artery that previously handled approximately one-fifth of global oil and gas shipments.
A senior Iranian official indicated that the strait could be reopened within a week if the U.S. reduces military pressure and lifts its blockade of Iranian ports.
Meanwhile, U.S. President Donald Trump, speaking at the United Nations General Assembly, acknowledged a recent "very good" three-hour meeting with Iranian envoys. "Will a deal be made with Iran? Or do I annihilate the Islamic Republic, and do it quickly?" Trump stated, though he also expressed optimism about a potential deal. "I believe we'll make a deal right after the election, because it doesn't make sense for them not to," he told reporters, suggesting Iran might be waiting for the outcome of the upcoming midterm elections.
Despite these diplomatic overtures, shipping through the Strait of Hormuz remains significantly reduced. In the week ending September 20, confirmed transits averaged 6.98 million barrels per day, a mere 38% of the pre-war baseline of 18.3 million barrels. Iran's crude exports have also plummeted, falling to zero in September from 893,000 barrels per day in July, following the U.S. reinstatement of its naval blockade.
The research agency Kpler noted that the strait is increasingly becoming a "Saudi-controlled shuttle corridor," as Saudi Arabia has rerouted exports to its Gulf coast following a Houthi attack that disrupted flows on its East-West pipeline.
An interim peace agreement between Washington and Tehran collapsed in July, and no timeline has been provided for future talks. Hopes for a diplomatic resolution have led to a softening of oil prices, with Brent crude futures falling 0.9% to $98.37 a barrel and West Texas Intermediate futures dropping 1.5% to $89.16 per barrel.
Fuel tankers carrying Iraqi oil arrive at the coastal storage facilities of the Baniyas Oil Terminal in Tartus province, Syria, on September 13, 2026. (Hasan Belal | Anadolu | Getty Images)Trump: I believe we’ll make a deal with Iran right after the election
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