(Sept 25): US and Iranian negotiators are exploring a phased deal that would see Tehran reopen the Strait of Hormuz and Washington lift its blockade of Iranian ports, according to a person familiar with the discussions.

The two countries — which have both refused to make similar agreements in recent months — were making a push for a breakthrough Thursday on the sidelines of the United Nations (UN) General Assembly, the person said, declining to be named discussing private matters. Qatari officials are mediating the negotiations. 

A sequenced deal would be similar to the memorandum of understanding that the US and Iran struck in mid-June, which led to a fragile ceasefire that collapsed just weeks later. 

A White House official said President Donald Trump remains open to talking with Iran but stressed the US didn’t need to negotiate because it was in a strong position as a result of an escalating sanctions campaign and an ongoing naval blockade pressuring Iran’s economy. 

Talks about a potential phased deal were reported earlier Thursday by Reuters.

Iranian Foreign Minister Abbas Araghchi told a group of journalists and academics in New York that his country offered the US a new seven-day proposal to reopen the Strait of Hormuz if certain conditions were met, the Financial Times reported. 

Oil fell on reports that US and Iranian negotiators were exploring a phased deal, with global benchmark Brent sliding towards US$106 (RM432) a barrel after rising more than 7% over the previous two days.

Off-and-on negotiations between Washington and Tehran have broken down numerous times since the war began, mostly over disagreements related to the Strait of Hormuz and when Iran would get access to billions in funds frozen by the US.

Iranian President Masoud Pezeshkian, who was in New York for the UN summit, used his speech to stress Tehran wouldn’t allow freedom of navigation through the Strait of Hormuz while sanctions and a US naval blockade remain in place. 

Araghchi represented Tehran in the talks and outlined its “firm positions” on reopening Hormuz, according to Iranian state media. Those conditions include the US immediately lifting a naval blockade, unfreezing Iranian assets and ending the war “on all fronts”, according to Iranian reports, an apparent reference to Israel’s campaign against Iran-backed Hezbollah militants in Lebanon.

“We have not closed the Strait of Hormuz,” Pezeshkian said in an interview with Fox News broadcast on Thursday evening. “It was open without any legal justification or framework. They attacked us.”

Trump told reporters on Tuesday that US and Iranian officials had spoken in New York amid the flurry of UN meetings. His comments lifted stocks and pushed down oil prices. 

The American president has repeatedly said the US and Iran were close to a deal with no results. He’s also threatened Tehran with military escalation multiple times — including a threat to “annihilate” the country earlier this week — without following through.

White House special envoy Steve Witkoff said on social media this week that mediators had spent much of the day shuttling between US and Iranian officials during extended discussions.

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