Negotiators from the United States and Iran are reportedly engaged in discussions in New York regarding a phased arrangement aimed at resolving the nearly seven-month conflict. This potential deal centers on Iran restoring shipping through the strategically vital Strait of Hormuz in exchange for Washington easing its stringent economic blockade, a move that could significantly reshape global oil markets and regional stability.
By SarmayaNext Corporate & Business Desk • ✓ Fact-Checked • Published September 2026
US and Iran Discuss Phased Deal to Reopen Hormuz Amidst UNGA
US and Iranian negotiators are discussing a phased deal where Iran would reopen the Strait of Hormuz for shipping, and the US would lift its economic blockade. These talks, held during the UN General Assembly, aim to end a seven-month conflict, with Iran seeking economic relief and the US seeking free maritime passage.
Sources familiar with the ongoing talks in New York indicate that US and Iranian negotiators are exploring a step-by-step agreement to de-escalate the protracted conflict. The core of this proposed phased deal involves Tehran reopening the Strait of Hormuz, a critical global oil supply route, in return for Washington lifting its comprehensive economic blockade on Iran. This strait has become a central bargaining chip, with Iran leveraging its control to seek relief from economic pressures, while the US prioritizes the resumption of unrestricted maritime traffic.
The negotiations, occurring on the sidelines of the 81st Session of the United Nations General Assembly (UNGA), face considerable challenges. Both sides are hesitant to make the first concession, as each views its current position as significant leverage. Iranian officials, however, acknowledge the escalating economic toll of maintaining the confrontation. A senior Iranian official suggested that a phased approach, starting with the reopening of Hormuz and the lifting of the blockade, could also potentially grant Iran access to its frozen assets. This proposed temporary fix follows an earlier understanding that collapsed in July, highlighting the need for durable concessions that build trust between the parties.
Concurrently, Pakistan’s Prime Minister Shehbaz Sharif met with Iranian President Masoud Pezeshkian during the UNGA. Both leaders reaffirmed their close, long-standing ties and committed to working towards regional peace, security, and prosperity. They emphasized the importance of regular consultations and close coordination to address regional challenges and opportunities. Prime Minister Sharif expressed deep concern over the prolonged regional conflict, advocating for restraint, de-escalation, and sustained diplomatic engagement to achieve lasting peace and stability. He also underscored Pakistan’s readiness to continue its constructive role in supporting regional peace and the implementation of the Islamabad Memorandum of Understanding (MoU). President Pezeshkian lauded Pakistan’s principled diplomacy and its efforts for regional peace, reiterating Tehran’s desire to deepen multifaceted cooperation.
Key Positions in US-Iran Phased Deal Discussions
| Party | Primary Demand | Key Leverage | Stated Stance |
|---|---|---|---|
| Iran | Relief from US economic blockade, access to frozen assets | Control over Strait of Hormuz | Acknowledges economic impact, open to phased agreement |
| United States | Resumption of unrestricted maritime traffic through Hormuz | Crushing economic sanctions, control of Hormuz | Holds all cards, open to talks under right circumstances, no need to negotiate |
Implications of a Phased US-Iran Deal: Global Trade and Regional Stability
The potential phased deal between the US and Iran carries significant implications for global energy markets and regional geopolitics. The Strait of Hormuz is a chokepoint through which a substantial portion of the world’s seaborne oil passes. Its closure or restricted access has a direct and immediate impact on oil prices and supply chains, affecting economies worldwide. A successful reopening would likely stabilize oil markets, potentially leading to lower energy costs for consumers and businesses globally, including in Pakistan, which relies heavily on imported oil.
For Iran, the lifting of the US economic blockade is crucial. White House officials have described the sanctions as “crushing” and the blockade as “one of the most successful in history,” crippling Iran’s economy. Access to frozen assets and the ability to freely export oil would provide a much-needed lifeline, alleviating severe economic pressure. However, US President Donald Trump has stated he believes the US holds all the cards, suggesting he is content to let Iran’s economy continue to struggle, potentially awaiting a deal after the midterm elections on November 3. Former US negotiator Dennis Ross estimates only a 30% chance of a deal before the elections, but notes both sides might have stronger incentives to agree sooner.
The diplomatic efforts by Pakistan, as evidenced by the meeting between Prime Minister Sharif and President Pezeshkian, highlight the broader regional desire for de-escalation and stability. Pakistan’s emphasis on sustained diplomatic engagement and its readiness to play a constructive role underscores the interconnectedness of regional security with global trade routes. A resolution to the US-Iran conflict, particularly concerning the Strait of Hormuz, would not only benefit Iran economically but also contribute to a more predictable and secure environment for trade and investment across the Middle East and South Asia, directly impacting Pakistan’s economic outlook and regional connectivity.
The challenge remains in building sufficient trust for durable concessions. A senior European official noted Iran’s “very long list of demands,” while a White House official maintained that President Trump is in a “very strong position” and has no immediate need to negotiate. This disparity in perceived leverage and demands suggests that while a phased deal offers a viable path forward, the negotiation process will remain arduous, requiring significant diplomatic dexterity to ensure any agreement is robust enough to withstand future political shifts and ensure long-term compliance from both parties.
Key Takeaways
- US and Iran are discussing a phased deal to reopen the Strait of Hormuz in exchange for easing US economic blockades.
- The Strait of Hormuz is a critical global oil route, and its status significantly impacts international energy markets.
- Iran seeks relief from severe economic pressure, while the US aims for unrestricted maritime traffic.
- Pakistan and Iran are reaffirming bilateral ties and advocating for regional peace and diplomatic solutions.
- Negotiations face challenges due to trust issues and differing perceptions of leverage, with US midterm elections potentially influencing the timeline.
The Insider Take
The current US-Iran negotiations represent a delicate balance of economic pressure and strategic leverage. While Iran’s economy is severely impacted by the blockade, its control over the Strait of Hormuz provides significant bargaining power. The US, despite its strong position, faces the imperative of ensuring global oil flow stability. The success of a phased deal hinges not just on the terms, but on establishing a credible mechanism for mutual trust and compliance, especially given past understandings that have collapsed. The involvement of regional players like Pakistan in advocating for peace adds another layer to the complex diplomatic landscape, underscoring the broader desire for de-escalation beyond the immediate parties.
Frequently Asked Questions About US Iran discuss phased
What is the core proposal of the US-Iran phased deal?
The core proposal involves Iran reopening the Strait of Hormuz for international shipping in exchange for the United States easing its economic blockade on Iran. This phased approach aims to resolve the nearly seven-month conflict by addressing both Iran’s need for economic relief and the US’s demand for free maritime passage through the vital oil route.
How does the Strait of Hormuz impact global trade and oil prices?
The Strait of Hormuz is a critical chokepoint for global oil shipments, with a significant portion of the world’s seaborne oil passing through it. Any disruption or restriction in its traffic can lead to immediate spikes in global oil prices and create instability in international energy markets, affecting economies and businesses worldwide, including Pakistan.
What role is Pakistan playing in the US-Iran situation?
Pakistan is actively engaged in diplomatic efforts to promote regional peace and stability. Prime Minister Shehbaz Sharif met with Iranian President Masoud Pezeshkian during the UN General Assembly, reaffirming strong bilateral ties and advocating for restraint, de-escalation, and sustained diplomatic engagement to resolve regional conflicts, including the US-Iran impasse.
“One way forward would be to solve the crisis in stages. The first would be to end the blockade and reopen Hormuz.” — Senior Iranian official
“Iran is desperate for a deal, President Trump holds all the cards and will make whatever decision is best for the United States.” — White House official
“The blockade is what’s really squeezing the Iranians. It’s strangling them.” — Dennis Ross
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