Iran vows Hormuz will stay closed until US meets sweeping demands

Iran's newly appointed Supreme National Security Council secretary declared Tuesday that the Strait of Hormuz will remain closed until the United States ends the war, releases frozen Iranian assets, and agrees to a region-wide ceasefire, hardening Tehran's negotiating position and dimming hopes for a quick resolution to the five-month standoff over the world's most critical oil chokepoint.

Dueling Demands Deepen Deadlock

Mohsen Rezaei, appointed Sunday as head of Iran's top security body, said Washington must end hostilities across the region — including in Lebanon and Gaza — before Tehran will allow shipping to resume through the strait, which carried roughly one-fifth of global oil and liquefied natural gas before the war began in February.reuters+1

"As long as America does not change its behaviour and does not accept Iran's conditions, the Strait of Hormuz will not be opened," Rezaei was quoted as saying by the semi-official Tasnim news agency.cyprus-mail+1

Rezaei stressed that any transit arrangement being negotiated separately between Iran and Oman would not constitute a reopening of the waterway. Qatar's foreign ministry said those Oman-Iran talks had reached "an advanced stage," but the distinction underscored that technical progress on shipping lanes does not equal restored access.wanaen+1

President Trump responded with his own escalatory demand Monday night, saying Iran should compensate the United States for "damage they've done over a 50-year period." Trump also claimed the U.S. Navy holds "100%" control of the strait, though ship-tracking data from Kpler showed confirmed crossings fell to as few as six vessels per day over the weekend.cbsnews+2

Oil Markets React

Crude prices extended a sharp rally as traders assessed the impasse. Brent climbed toward $89 a barrel on Tuesday while U.S. West Texas Intermediate topped $83, following gains of roughly 5% the day before.cnbc+1

"Current rhetoric suggests any potential deal is still some way off, meaning risks remain skewed to the upside for oil prices," ING strategists wrote Tuesday.cnbc

The S&P 500 slipped 0.38% and the Nasdaq Composite fell 0.79% as energy-driven inflation fears revived speculation about a possible Federal Reserve rate hike in September.finimize

Mediation Continues Amid Violence

Pakistan and Qatar, the conflict's main mediators, offered cautious optimism. Pakistani Defence Minister Khawaja Asif told Bloomberg News that the two sides appeared "close to some sort of an arrangement." But analysts said the competing reparations demands had pushed the parties further apart.reuters

"Both sides appear to be putting forward maximalist demands ahead of serious negotiations," said Negar Mortazavi, senior fellow at the Centre for International Policy.aljazeera

The diplomatic stalemate was underscored by continued violence at sea. Four crew members were killed Tuesday in a suspected Houthi attack on a cargo vessel in the Bab el-Mandeb Strait — the first such fatalities since the war began — while a container ship was struck by a missile off Pakistan in what sources described as a U.S. enforcement action against vessels running Washington's blockade of Iranian ports.cbsnews+1