Iran says that the US must meet seven conditions based on the Memorandum of Understanding (MOU) signed in June before it will allow the Strait of Hormuz to reopen.
“The position of the Islamic Republic of Iran is completely clear and firm, and the Strait of Hormuz will not be opened until our seven conditions, based on the Islamabad Memorandum of Understanding, are met,” Iran’s parliament speaker Mohammad Baqer Qalibaf said on Sunday. Washington “must understand that the period of dragging out the (diplomatic) process and dictating one-sided demands is over.”
The MOU was signed by the US and Iran in June. It was initially intended to create a pathway for a permanent deal to end the war. The MOU called for an end to military operations by the US, Iran, and their allies, including in Lebanon, and for the restoration of commercial traffic through the Strait of Hormuz overseen by Tehran.
However, Israel refused to end its war and occupation of southern Lebanon. Since the signing of the MOU, war between Ansar Allah and Saudi Arabia ignited. Tehran now says the ceasefire must expand to Yemen and Gaza.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei added that Tehran will not negotiate with the US over its nuclear program until its conditions are met. “The Americans’ propositions are more or less in line with their previous positions, specifically on the nuclear issue,” he explained. “We told them our focus in this stage is the issue of the Strait of Hormuz, and the return to security in this waterway requires clear steps from the US.”
The Strait of Hormuz has become a crucial issue for President Donald Trump. Before the war, the Strait was a free and open waterway. In response to a US and Israeli war, Iran seized control over the Strait and limited traffic in the waterway.
Tehran asserts that Iran and Oman, as the coastal states bordering the Strait, have sovereign rights over the waterway. Tehran and Muscat have held negotiations on establishing new shipping routes and protocols through the waterway, leading Trump to threaten attacks on Oman.
Before the war, a fifth of the global oil supply exited the Persian Gulf through the Strait of Hormuz. The waterway has largely been closed due to Iran’s restrictions on shipping and the US blockade of Iran.
The closure of the Strait caused a spike in oil prices. The US attempted to increase the export of Gulf oil by escorting tankers through the Strait and Saudi Arabia pumping oil through its Red Sea ports. However, Ansar Allah’s attacks on Saudi energy infrastructure and Iranian attacks on tankers in the Strait have significantly limited the amount of Gulf oil reaching the global market.
The price of Brent crude remained above $102 per barrel at the end of last week.
