Iran demands US compliance for reopening Strait of Hormuz

Iranian Foreign Minister Abbas Araghchi has stated that the reopening of the strategically significant Strait of Hormuz hinges on the United States returning to its commitments under the Islamabad Memorandum. This stance, reported by @FirstSquawk, underscores the existing tensions between Iran and the United States amidst an unstable truce following the 2026 Iran–United States war. The Islamabad Memorandum, which was intended to defuse hostilities and set terms for shipping and sanctions relief, has seen repeated allegations of violations from both sides, leading to intermittent blockades and strikes. Araqchi’s statement suggests a high level of conditionality and reflects the significant pressure point that control of the Strait represents in the ongoing diplomatic standoff. Key Takeaways Araqchi’s statement appears to emphasize Iran’s conditional approach to reopening the Strait of Hormuz, suggesting ongoing diplomatic tensions. Market pricing is consistent with a decrease in the likelihood of a U.S.-Iran agreement by the September 15 deadline, with odds currently at 2.9% YES. The conditional stance on reopening the strait suggests that market participants view the prospect of a ...