As indirect negotiations between the United States and Iran continue this week in Qatar, the U.S. has reportedly demanded the reopening of the Strait of Hormuz in exchange for the release of frozen Iranian funds. However, Iran is insisting on maintaining its toll collection for passage through the strait, according to a report by The Wall Street Journal on July 2, citing sources.
The U.S. negotiating team, led by Steve Witkoff and Jared Kushner, met with Qatari officials on July 1 to discuss the reopening of the Strait of Hormuz and the implementation of a U.S.-Iran memorandum of understanding (MOU) regarding the Israel-Lebanon conflict.
The U.S. side proposed to release $6 billion of Iran's $100 billion in frozen overseas funds in exchange for Iran relinquishing its control over the Strait and its toll collection. However, the talks stalled as Iran remained firm on its control of the strait, sources indicated.
Kazem Gharibabadi, Iran's Deputy Foreign Minister, stated on social media platform X that the U.S. Central Command's discussions with 12 Middle Eastern countries regarding free passage and security in the Strait of Hormuz were unwarranted, asserting, "The Strait of Hormuz is under Iran's jurisdiction, not the U.S. Central Command."
As a result, Iran continues to insist on charging fees for all vessels passing through the Strait, as noted by the Journal. The U.S. is also seeking to coordinate with Oman, which manages the southern region of the strait, but Iran has opposed any plans that do not include tolls.
Meanwhile, Gulf nations have expressed doubts about Iran's capability to manage the Strait effectively. Sanam Vakil, head of the Middle East and North Africa program at the Chatham House think tank in the UK, remarked, "Iran seeks to open the Strait under favorable conditions for itself and is reluctant to give up its current negotiating leverage. However, it is easier for Iran to disrupt the Strait than to manage it stably."
With discussions between the U.S. and Iran at an impasse regarding the Strait of Hormuz, the safety of commercial shipping through the area remains uncertain. Last week, Iran attacked vessels using alternative routes established by Oman without Iranian approval, prompting a U.S. counter-response and escalating tensions.
According to maritime data firm Kepler, the number of vessels transiting the Strait of Hormuz as of July 1 was 43, nearly halving from 75 the previous week.
* This article has been translated by AI.
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