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Iran uses Strait of Hormuz control to pressure the US on talks

Traffic along the waterway has effectively halted again as Iran keeps leverage tied to negotiations and seeks sanctions relief and release of frozen funds.

Reported · Written up by our desk · Energy

Forexlive says Iran’s approach to negotiations with the United States appears to be working, even after Trump signaled earlier that a deal was “over” and then toned things down by suggesting the other side wants to continue talks.

The outlet links the renewed tension to the Strait of Hormuz, where it says control remains Iran’s biggest leverage. In its account, attacks on ships along the strait have helped Tehran both remind Washington of its leverage and create a built-in reason to postpone or call off talks if the US responds.

Forexlive adds that Iran could also use related developments, including Israel’s strikes on Lebanon, as additional justification for delaying negotiations. The outlet characterizes Tehran’s messaging as a cycle of reopening and closing the strait for optics, while shifting blame to the US for any shutdown.

While noting a slightly calmer mood in the headlines, Forexlive warns that markets are still exposed to the possibility that oil prices could rise again if the strait’s status worsens. It says the longer this reopening and closing continues, the worse it could be for the global outlook and for the pressure Iran is trying to apply to win sanctions relief and access to frozen funds.

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