US, Iran Said to Be Exploring Phased Deal to Open Hormuz

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

The two countries were making a push for a breakthrough Thursday on the sidelines of the United Nations General Assembly meetings in New York, the person said, declining to be named discussing private matters. Qatari officials are mediating the negotiations, they added.

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

The White House did not immediately respond to a request for comment. Talks about a potential phased deal were reported earlier on Thursday by Reuters.

Still, 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.

Iran 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.

Foreign Minister Abbas Araghchi represented Tehran in the talks and outlined Tehran's "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.

President Donald 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.

Trump 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.

Trump Threatens Iran Annihilation in Speech That Disregards UN