HORMUZ OFFER: U.S. Proposes Unfreezing Iranian Funds In Exchange For Free Passage Through Strait

The United States has proposed offering Iran gradual access to frozen funds and partial sanctions relief in exchange for keeping the Strait of Hormuz open to unrestricted commercial shipping without transit fees, according to reports Wednesday. Diplomatic sources cited by UAE-based Erem News said Pakistan is serving as a mediator to convey the proposal to Tehran. The framework would be renewed monthly and require Iran to maintain full freedom of navigation through the Strait without imposing fees or restrictions on vessels. In return, Washington would authorize the release of an agreed-upon portion of Iranian assets frozen abroad each month, according to a negotiated timetable. The proposal addresses two key points in ongoing talks: Washington's demand that Iran not charge for passage through the Strait, and Tehran's demand that the United States end its naval blockade of Iranian ports. Diplomatic sources characterized the proposal as a temporary arrangement rather than a comprehensive settlement, separate from parallel negotiations between Iran and Oman aimed at a broader accord. Shipping traffic through the Strait has declined significantly, with eight vessels transiting on Tuesday compared to an average of approximately 12 per day over the previous 10 days - the lowest daily level since August 5. The Strait of Hormuz remains central to negotiations between Washington and Tehran, with the Trump administration demanding unrestricted passage for international shipping while Iran seeks sanctions relief, access to frozen assets and an end to the U.S. Blockade.