Iran issues long list of steep demands the US must meet before the Strait of Hormuz will be reopened

The Supreme National Security Council said the Strait of Hormuz will not open until the United States "corrects its behavior."

Iran's Supreme National Security Council has issued a list of demands that the US must meet before the Strait of Hormuz is reopened. The council's secretary, Ali Shamkhani, stated that the US must "correct its behavior" and lift sanctions on Iran's oil exports, which have resulted in a 90% decline in Iranian oil sales. Additionally, Iran is demanding the release of $10 billion in frozen assets and the removal of US troops from the region. The council also wants the US to stop supporting Iranian opposition groups.

The closure of the Strait of Hormuz could lead to a significant increase in oil prices, which would directly affect the cost of gasoline for American drivers. If the strait remains closed, oil prices could rise by as much as $10 per barrel, resulting in a 25-cent increase in the price of gasoline at the pump. This would be a significant burden for American households, particularly those with lower incomes.

The current tensions between Iran and the US are a result of the US withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in 2018. The JCPOA was a nuclear deal between Iran and world powers that lifted sanctions on Iran in exchange for limits on its nuclear program. Since the US withdrawal, Iran has been increasing its nuclear activities, leading to a escalation of tensions between the two countries. Insiders know that Iran's demands are likely a negotiating tactic, but the country's willingness to close the Strait of Hormuz has raised concerns about the stability of the global oil market.

The US and Iran are set to meet at the United Nations General Assembly in September, where they will likely discuss the Strait of Hormuz and other issues. However, a more immediate concern is the upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC) on August 22, where member countries will discuss production levels and potentially respond to the Strait of Hormuz closure. Interestingly, China, which is Iran's largest oil customer, has been quietly increasing its oil imports from other countries, potentially reducing its reliance on Iranian oil and giving it more leverage in negotiations with the US.