Global oil flow at stake as Washington seeks deal to end Strait of Hormuz blockade

The United States has offered to lift all sanctions on Iran and cancel its newly launched "Operation Economic Outcast" in exchange for the reopening of the Strait of Hormuz, according to a report by Al Arabiya citing a senior source on Wednesday, 26 August. The proposal was reportedly delivered by Pakistan’s army chief, Field Marshal Asim Munir, during a high-level meeting in Tehran with Mohsen Rezaei, the secretary of Iran’s Supreme National Security Council. The deal aims to restore maritime traffic through the strategic waterway, which handles approximately 20 percent of global oil supplies, and secure a cessation of regional proxy attacks. Terms of the US Proposal Under the reported terms, Washington would terminate the naval blockade of Iranian ports and suspend the aggressive secondary-sanctions campaign announced on Monday, 24 August by U.S. Treasury Secretary Scott Bessent. That campaign, dubbed Operation Economic Outcast, was designed to isolate Tehran’s technology, gold, aviation, and digital asset sectors. In exchange, Iran must guarantee unimpeded passage through the Strait of Hormuz. The move follows the collapse of a June 2026 memorandum of understanding (MOU) that had briefly eased tensions before both parties traded accusations of protocol violations. Iran Demands Compensation and Withdrawal Despite the new diplomatic overture, Iran has maintained a list of maximalist conditions. According to the reports, Tehran is demanding $300 billion in direct…