Trump-Iran Talks Put Strait of Hormuz Access On Table In Exchange For US Blockade Relief: Report

U.S. and Iranian negotiators in New York are discussing a phased path out of the war that could see Iran reopen the Strait of Hormuz in exchange for Washington lifting its blockade on Iranian ports, according to a report citing Iranian and Western diplomatic sources and regional officials. New Developments in US-Iran War Neither side wants to be seen as surrendering its leverage first, and that has become a major hurdle in the discussions, Reuters reported, citing comments from Iranian sources and Western diplomatic sources, as well as two regional officials. However, behind Tehran’s stand is a recognition that a prolonged war has economic consequences. A senior Iranian official noted that a reasonable way to end the stalemate would be a gradual arrangement, with Iran permitting transit via Hormuz, while the U.S. agrees to remove its economic blockade. In addition, Iran potentially gets access to assets that have been frozen, the report added. However, this arrangement would involve President Donald Trump accepting a tentative remedy after a temporary peace deal fell through two months ago. A key obstacle the negotiators are facing is forming a deal that is acceptable to both sides, according to the report. A White House official told the news outlet that Iran is “desperate” for a deal and that Trump “holds all the cards” and will make a decision that is best for the U.S. The White House did not immediately respond to Benzinga’s request for comment. Read Also: Trump to Meet Gulf Leaders on Iran War Endgame, Signals Conflict Is ‘Hopefully’ Nearing End: Report Trump and Pezeshkian Both Want Peace, But Tussle Continues Iranian President Masoud Pezeshkian reportedly said on Thursday that the country is willing to make a peace deal with the U.S. before the November midterms. Speaking on the sidelines of the United Nations General Assembly, Pezeshkian urged Washington to return to the June memorandum of understanding that had established a framework for a temporary ceasefire before collapsing. Meanwhile, Trump said in his UN address that his administration could reach a peace agreement with Iran after the midterms. Earlier this week, Trump warned that he could “annihilate” Iran if Tehran fails to reach a deal to end the conflict. However, both sides continue to spar amid the potential negotiations. Iran’s Parliament Speaker Mohammad Bagher Ghalibaf mocked the Trump administration over rising U.S. Treasury yields on Thursday, warning that Iran could return the U.S. to “1970s rates,” along with high gas prices and diesel shortages. Treasury Secretary Scott Bessent defended Trump’s aviation restrictions on Iran, saying more than 80% of the country’s external flights had likely been shut down. Betting crowd on Polygon (CRYPTO: POL)-based Polymarket now assigns an 8% chance that the U.S. and Iran reach an agreement over traffic in the Strait of Hormuz by Sept. 30, up 5 percentage points in a week. See More: Top Value Stocks Photo courtesy: Shutterstock