Iran says no direct talks with U.S. as it touts incoming deal on Strait of Hormuz

Iran reiterated Sunday that it is not holding direct negotiations with the U.S. and that it would not restart diplomatic talks until Washington agrees to certain conditions and stops violating the terms of the Islamabad Memorandum of Understanding.

Iranian Foreign Minister Abbas Araghchi told reporters in Tehran that Tehran is passing messages through intermediary countries, likely Pakistan and Qatar, but indicated that the conversations are far from direct negotiations.

He added that Iran’s separate discussions with Oman over control of the Strait of Hormuz are in “final stages” but warned that any agreement reached between the two nations would not automatically reopen the waterway, which has remained closed to commercial shipping for weeks.

Iran and Oman have held direct negotiations over management of the strait for weeks after the signing of the now-defunct Islamabad Memorandum of Understanding in July. According to reports, the incoming deal would outline specific routes that commercial ships would be required to take to transit the waterway safely.

In some reports, ships entering the strait would pass through Iranian waters and leave through Omani-controlled routes.

Mr. Araghchi confirmed that while the deal would outline new shipping lanes in the strait, it would be effectively meaningless without the removal of the U.S. blockade of Iran’s ports and a ceasefire.

Iran has kept the Strait of Hormuz effectively closed for months after the U.S. and Israel launched joint strikes in late February. At least one-fifth of the world’s oil supply travels through the strait each year, and its closure has driven up global energy prices.

Brent crude oil, the standard international trading classification, stood at about $82 a barrel on Friday, down from $101 a barrel in July but still above pre-war levels.

After nearly two weeks of continuous fighting, the U.S. and Iran returned to a state of relative peace last week after President Trump called off yet another attack on Iranian targets.

Mr. Trump called off the attack after fielding calls from regional leaders and reportedly noting positive progress in peace talks.

Mr. Trump and other administration officials said last week that a deal to reopen the strait is imminent while offering few details on what the deal would include. The extent of Washington’s involvement in the Iran-Oman talks over the strait remains unclear.

On Saturday, Iranian Gen. Hossein Mohebbi, spokesperson for the Islamic Revolutionary Guard Corps, and Supreme National Security Council Secretary Mohammad Bagher Zolghadr laid out six conditions for reopening the strait: a ceasefire for the entire region, the removal of the naval blockade, war damage compensation, the unfreezing of billions of dollars worth of Iranian assets and sanctions relief.

The now-defunct memorandum of understanding included provisions that mentioned all of Iran’s current demands. That deal ultimately broke down in July after Iran struck commercial ships in the Strait of Hormuz, which it said had violated the terms of the agreement.