Date: September 24, 2026
Reporter: Emilly Jordan
The United States and Iran are exploring a phased arrangement that could end their nearly seven-month conflict by reopening the Strait of Hormuz and lifting the U.S. economic blockade of Iran, according to sources familiar with the negotiations in New York.
The discussions are taking place on the sidelines of the United Nations General Assembly, with the strategically important waterway emerging as the central bargaining point between Washington and Tehran. Iran wants relief from the U.S. blockade, which has severely restricted its economy and oil exports, while Washington is seeking the restoration of unrestricted shipping through Hormuz, a major global route for oil and gas.
A senior Iranian official told Reuters that the most plausible way to break the deadlock would be to resolve the crisis in stages. Under the proposal, Iran would allow navigation through the Strait of Hormuz while the United States would lift its economic blockade, with Tehran potentially receiving access to frozen Iranian assets.
“One way forward would be to solve the crisis in stages,” the official said, describing reopening Hormuz and ending the blockade as the first step.
The talks face a major obstacle because neither side wants to surrender its strongest bargaining position before receiving concrete concessions from the other. Washington controls economic pressure on Iran, while Tehran controls access to the strategic waterway, creating a situation in which both governments are seeking guarantees that any agreement will hold.
The United States and Iran previously reached an interim understanding, but that arrangement collapsed in July. Negotiators are therefore also confronting the question of how to make any new concessions sufficiently durable to prevent another breakdown.
U.S. President Donald Trump has said he believes an agreement could be reached after the November 3 congressional midterm elections. A senior European official said Iranian negotiators have presented a lengthy list of demands.
A White House official, meanwhile, said Iran was seeking a deal but argued that Trump remained in a strong negotiating position. The official said Washington was open to talks under the right circumstances but did not believe the United States needed an agreement immediately. The administration has described its sanctions and blockade as having placed severe pressure on Iran's economy.
Former U.S. Iran negotiator Dennis Ross told Reuters that he saw only a 30% chance of an agreement before the midterm elections, while noting that both Washington and Tehran could have political and economic reasons to reach an understanding before the vote. His assessment is an attributed forecast, not a confirmed outcome.
For Iran, the economic pressure has become increasingly significant. U.S. sanctions have targeted the country's remaining commercial airlines and support networks, while the blockade has sharply restricted oil exports, one of Tehran's principal sources of hard currency.
Iranian officials have also signalled some flexibility over demands concerning transit fees for ships using Hormuz. Regional sources said Tehran could move the issue of fees from the main agreement into a separate attachment, allowing the immediate focus to remain on ending the blockade and restoring navigation.
Gulf states have rejected the idea of Iranian transit fees. According to regional sources cited by Reuters, any compromise on the issue would be temporary and would not amount to Iran abandoning its position regarding its administrative control of the waterway.
The Strait of Hormuz has become particularly important because it carried roughly one-fifth of global oil and gas shipments before the war. Its disruption has affected energy markets and increased concerns among Gulf countries that the waterway could remain caught in the conflict.
Gulf leaders have separately pressed Washington for clarity about its longer-term strategy. During a meeting with Trump in New York, they sought assurances about what would happen if Iran refused to return to negotiations after the midterm elections and whether the United States would resume military action.
The Gulf states have rejected Iranian control of Hormuz and called for freedom of navigation to be restored, according to regional sources. At the same time, they have pushed for de-escalation and a political process, reflecting concerns that another round of U.S.-Iran fighting could further destabilize the region.
The negotiations are also taking place against the backdrop of fighting involving Iran-aligned groups elsewhere in the region. In Yemen, the Houthi movement has intensified attacks and advanced against forces backed by Saudi Arabia, while the wider conflict has raised concerns over the Bab el-Mandeb Strait, another critical shipping route connecting the Red Sea with the Gulf of Aden.
Iranian officials have said Tehran is preparing for the possibility that fighting with Washington could resume even as diplomatic contacts continue. A senior Iranian official told Reuters that Tehran remained under pressure but was not prepared to surrender its leverage.
The United States, Iran and Gulf states therefore face competing priorities. Washington wants the economic pressure on Tehran to produce concessions, Iran wants the pressure removed before giving up significant leverage, and Gulf governments want the conflict brought to an end without either Hormuz or other regional waterways becoming permanent instruments of confrontation.
The New York negotiations could provide a path toward reopening one of the world's most important energy routes, but the differences over sanctions, the blockade, Iranian control of Hormuz and the sequencing of concessions remain unresolved. For now, the discussions represent an attempt to turn the leverage held by both sides into a phased agreement rather than another escalation of the war.