Iran's Revolutionary Guards announced on Sunday that they will not reopen the Strait of Hormuz until the United States meets a list of demands, which includes compensation for war damages. The effective blockade of this critical energy route has raised concerns among allies and affected market prices. US President Donald Trump indicated a cautious approach towards Iran, suggesting he could wait for economic conditions to change in Tehran.
Iran's demands include an end to the ongoing war, lifting of the US counterblockade on Iranian ports, removal of sanctions, release of frozen assets, and compensation for wartime damages, as reported by the Tasnim news agency. These conditions align with a previous June agreement that proposed a $300 billion reconstruction fund for Iran.
The Revolutionary Guards emphasized their strategy to maintain the blockade until their conditions are accepted, stating that the strait has become a 'theatre of war.' Traffic through the strait has decreased significantly due to ongoing attacks, with reports of at least one tanker being struck recently. Oman has condemned the attacks and is involved in discussions regarding navigation arrangements in the strait.
In parallel, Iran's Houthi allies in Yemen have declared a blockade on Saudi ports in the Red Sea and claimed to have targeted a Saudi oil facility. The situation has escalated tensions in the region, challenging Saudi Arabia's stability and security efforts. On Friday, Saudi Arabia signed a joint defense agreement with Turkey and Pakistan, which includes a mutual defense clause.