Pakistan: US, Iran Close to Hormuz Deal Despite Trump Demands
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- Khawaja Asif told reporters in Islamabad the US and Iran are "close to some sort of arrangement" on the Strait of Hormuz, saying "things are shaping up in favour of peace" without detailing any breakthrough.
- Iran–Oman talks over reopening Hormuz to maritime shipping have reached an advanced stage, per Al Jazeera citing a Qatari Foreign Ministry spokesman.
- Iran's demands include lifting the US naval blockade, releasing frozen assets, compensation for war damages, and a permanent end to attacks on militant groups in Lebanon, Iraq, Yemen, and Gaza.
- Trump on Aug 10 demanded Iran pay reparations and said those demands will be included "firmly into any, and all, future negotiations," while signaling over the weekend he'd let economic pressure build rather than launch fresh strikes.
- Iran's economy showed year-on-year inflation hitting 77%, with the rial falling more than 10% from its prewar level amid the ongoing US blockade.
- Attacks continued alongside talks: a fire at Saudi Arabia's Jazan refinery was extinguished Aug 9 with Yemen's Houthis claiming responsibility, while European diesel futures surged more than 10% and Middle East-to-China supertanker hire costs approached US$500,000 per day—more than double prewar levels.
Why it matters: For the roughly 20% of global oil and LNG that flowed through Hormuz before Feb 28, the mediator's optimism clashes with a ground reality of doubling tanker costs (US$500,000/day) and 10% surges in European diesel futures. Iran's 77% inflation gives Trump leverage to wait for economic collapse — but ongoing refinery attacks show the talks haven't stopped the shooting.
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