The Zhitong Finance App learned that people familiar with the matter revealed that US and Iranian negotiators are exploring a phased agreement, which includes Iran reopening the Strait of Hormuz and the US lifting the blockade of Iranian ports. As of press release, WTI crude oil futures fell 0.87% to $93.79 per barrel; London Brent crude oil futures fell 0.92% to $106.05 per barrel.
People familiar with the matter said that both countries have refused to reach a similar agreement in recent months, but they are pushing for a breakthrough during the UN General Assembly on Thursday. Qatari officials are mediating negotiations. This phased agreement will be similar to the memorandum of understanding reached between the US and Iran in mid-June. The memorandum led to a fragile cease-fire, but it broke down just a few weeks later.
A White House official said that US President Donald Trump is still open to dialogue with Iran, but he stressed that the US is in a strong position due to escalating sanctions and ongoing maritime blockades putting pressure on Iran's economy, so there is no need for negotiations.
Since the war began, intermittent negotiations between Washington and Tehran have broken down many times. The main differences focus on the Strait of Hormuz and when Iran will be able to obtain billions of dollars of funds frozen by the US.
Iranian President Masood Pezzahizyan, who is attending the UN summit in New York, stressed in his speech that Iran will not allow free navigation in the Strait of Hormuz as long as sanctions and the US naval blockade remain in place.
According to reports, Iranian Foreign Minister Abbas Alagzi represented Tehran in negotiations and explained Iran's “firm position” on reopening the Hormuz issue. The conditions include the US immediately lifting the naval blockade, unfreezing Iranian assets, and ending the war on “all fronts.”
Trump told reporters on Tuesday that US and Iranian officials spoke during intensive UN meetings in New York. His remarks boosted the stock market and lowered oil prices.
Trump has said many times that the US and Iran are close to reaching an agreement, but none of them came to fruition. He has also repeatedly threatened a military escalation against Iran, including threatening to “wipe out” Iran earlier this week, but no action was taken.
White House Special Envoy Steve Witkoff said on social media earlier this week that the two sides had “lengthy talks through a mediator, and the mediator ran between the two sides that day.” He wrote on X: “They successfully completed a round of discussions, and we wanted this round to be constructive and promising. The mediators will continue to work.”