Iran has said the Strait of Hormuz will remain closed unless the United States agrees to Tehran’s demands, while warning that the crisis cannot be resolved through military action.
The Islamic Republic says Washington must accept seven conditions outlined in a June agreement, stressing that its position on the issue is “completely clear and firm”.
The shutdown of the strategically vital Persian Gulf waterway has sent global oil prices sharply higher. In the UK, diesel exceeded £2 per litre for the first time last week as fuel supplies tightened.
Under pressure from US President Donald Trump and amid growing concerns over energy costs, G7 leaders agreed on Friday to release 100 million barrels of crude oil and diesel from emergency reserves.
Mohammad Baqer Qalibaf, speaker of Iran’s parliament, said the Strait of Hormuz would not reopen until Washington accepted Tehran’s conditions.
He said the US had recently sent proposals through an intermediary, despite presenting a different account of the talks in public.
“The Americans must realise that the era of prolonging negotiations and imposing unilateral demands has ended,” Qalibaf said.
“The Islamic Republic of Iran’s position is entirely clear and unwavering. The Strait of Hormuz will remain closed until the seven conditions set out under the Islamabad Memorandum of Understanding are fulfilled.”
Iranian parliament speaker Mohammad Baqer Qalibaf said Washington had recently submitted proposals through a mediator despite its public statements.
Iranian Foreign Minister Abbas Araghchi also rejected the prospect of a military resolution to the conflict, saying there was “no military solution” to the war.
He warned that Iran would respond even more forcefully if its opponents resumed military confrontation.
“There is no military solution, and there is no solution through imposing further sanctions,” Araghchi said.
Since the war began, Iran has sought to assert control over the crucial shipping route and has attacked vessels attempting to pass through the strait without its approval.
Iran’s Foreign Ministry said on Sunday that Tehran had conveyed its main position on the US response through mediators, although further details still needed to be sent to Washington.
Foreign Ministry spokesman Esmaeil Baghaei said the American proposals were broadly consistent with Washington’s earlier stance, particularly regarding Iran’s nuclear programme.
“We made clear that our priority at this stage is the Strait of Hormuz. Restoring security in the waterway requires concrete and clear steps from the United States,” he said.
Iran had previously offered to reopen the strait and return to nuclear negotiations in return for several US concessions, including the removal of a naval blockade around Iranian ports.
Qatar has been acting as a go-between for Washington and Tehran as efforts continue to halt the conflict and reopen the waterway. Before the war began at the end of February, roughly one-fifth of the world’s traded oil passed through the Strait of Hormuz each day.
The memorandum of understanding signed in June produced a short-lived ceasefire and included provisions addressing both the strait and Iran’s nuclear programme.
Donald Trump claimed the US had imposed the “greatest blockade ever in military history” and said Iran wanted an immediate agreement to reopen the strait because it was “losing so badly”.
But Mr Trump told reporters in late September that Tehran was now desperate to reopen the vital waterway because it was ‘losing so badly’, as he confirmed he had rejected its latest ceasefire proposal.
Calling Iran’s proposal ‘unacceptable,’ Mr Trump claimed that the Middle Eastern country wanted to strike a deal ‘because they’re dying’ and ‘have no money coming in’.
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Mr Trump said that the US was imposing the ‘greatest blockade ever in military history’, adding that Iran wanted to make a deal to ‘open the strait immediately because they’re losing so badly’.
The President also said the US was ‘winning tremendously’ and had ‘total control’ of the strait.
‘Because they get their money from the Hormuz Strait, so they outsmarted themselves,’ Mr Trump continued.
The President told aides that he expected to continue bombing Iran after the midterms in November.
Iranian Foreign Minister Abbas Araghchi had said the deal’s first steps would take roughly four to five days.
Under the suggested proposal, the strait would open on the sixth day. Talks with the US would resume on the final day of the deal.
But Mr Trump warned during his address to the United Nations General Assembly that he could ‘annihilate’ Iran if a deal was not found to end the near-seven-month war.
‘Will a deal be made with Iran that lets them rebuild and create a far greater country than it ever was before? Maybe one of the greatest in the Middle East or even the world?’ Trump said.
‘Or do I annihilate the Islamic Republic and do it quickly, never giving them a chance to kill and destroy people and countries again?’ he added.
The US has not struck Iran since September 1.
G7 countries including Britain, France and Germany said they would release up to 100 million barrels starting immediately after the US threatened a diesel export ban.
European leaders had sought to defy the President’s demands over fears the continent could be left exposed to diesel price rises this winter if the Iran war drags on.
But after a meeting of G7 leaders, European countries gave in to Mr Trump’s demands, with experts claiming the White House had ‘bullied’ them into acting.
Foreign Secretary Ed Miliband stood in for Andy Burnham on the call with world leaders, while the Prime Minister attended his father’s funeral.
Mr Miliband said: ‘G7 members have agreed co-ordinated measures to stabilise energy supplies, build resilience in supply chains and shield households and businesses from price shocks.’
There have been global shortages of diesel since the US launched its war with Iran in February. Vladimir Putin has banned exports following a series of Ukrainian attacks on Russian refineries, while China has also imposed export restrictions in response.
Mr Trump demanded that Europe release diesel reserves into the market to lower fuel prices before US midterm elections next month. He had threatened to impose a US export ban that would risk further shortages if Europe didn’t act.
The threat of a diesel ban has seen prices surge and triggered panic in Whitehall, where officials have warned that the UK has as little as 40 days’ supply in reserve.
The average cost of diesel in Britain has surged by more than 40 per cent since the start of the US-Iran war and surpassed £2 on Friday. A litre of diesel is now on average 57.6p more expensive than on February 28 this year, when it cost 142.38p.
A Government source said: ‘The fact that we have these warnings from the US at the same time as ongoing disruption in the Strait of Hormuz and the Houthis trying to shut down exports via the Red Sea is pretty unhelpful and very concerning.’
Another source said officials were already working on contingency plans for potential diesel rationing if the US ban goes ahead and the Middle East crisis remains unresolved.
Britain is particularly exposed to shocks in diesel prices with its 40-day reserve and reliance on the US for a quarter of its imports. By comparison, the EU has about 80 days supply and France and Germany more than 200 days.
