Iran's Supreme National Security Council has demanded the complete withdrawal of US military forces from the region among its conditions for reopening the Strait of Hormuz, while US Vice President JD Vance stated that American military action destroyed Iran's nuclear program and that Iran had agreed to invite IAEA inspectors back, the latter of which Iran's foreign ministry denied [6][7][11][22].

The council's secretary, Mohammad Bagher Zolghadr, published a demand list: that the US never threaten Iran again, permanently end the war against Iran and its allies, lift the naval blockade, withdraw military forces, pay compensation for war damages, lift sanctions, and unconditionally release frozen assets [6][7][10]. Zolghadr stated the council would not retreat from these demands "whether in war or in negotiations" [10]. IRGC spokesperson Hossein Mohebi described the strait as "a theatre of war for us and not just a waterway" and said the IRGC would maintain control until the US accepts all conditions [5][21]. Iran's parliament separately approved a draft law to regulate navigation in the strait, banning passage of US and Israeli ships and imposing fines of up to 20% of shipment value for violations [2].

Vance stated that US military action had destroyed Iran's nuclear program and conventional military capability [11]. Vance also said Iran had agreed to invite IAEA inspectors back into the country [22]. Iran's foreign ministry spokesman Esmaeil Baqaei stated that no new commitments on nuclear inspections had been made and that Tehran had no plan to grant inspectors access to bombed sites [22]. Trump stated that Iran "fully and completely agreed to inspections despite its protestations and false statements" [22]. Treasury Secretary Scott Bessent said a 60-day sanctions waiver was tied to Tehran's commitment to keep the strait open and allow IAEA inspectors back [22].

Iranian Foreign Minister Abbas Araghchi said talks with Oman on a technical shipping route were in their "final stages" but that an agreement alone would not reopen the waterway [3][9][17]. Oman's foreign ministry described negotiations as proceeding "in a positive and constructive atmosphere" while condemning repeated attacks on vessels transiting the strait [4][7]. The IRGC stated that the strait's reopening had "nothing to do with the negotiations between Iran and Oman" [4][12]. France 24 reported that many of Iran's demands had already been agreed to by the US in a June memorandum of understanding, reframing them as reaffirmation rather than new conditions [20].

Trump characterized the US approach as "low-keying it" and "semi-negotiating," saying the administration was watching Iran's inflation and lack of funds [3][16][17]. Vance said Iran had informed the US it would not impose tolls on transiting ships and would allow maximum oil flow, but that Washington would verify rather than trust those commitments [15][26][28]. Chairman of the Joint Chiefs of Staff Dan Caine urged senior Trump administration officials to find an exit from the nearly six-month war [15]. Les Echos reported that the US is running low on munitions [31].

President Masoud Pezeshkian said there was "cohesion, strength, and unity in the country" and that Iran was "considered victorious and powerful in this war," calling for an end to the "neither war nor peace" status [7][8][19]. Analyst Negar Mortazavi argued Pezeshkian's messaging was coordinated strategic communication aimed at both domestic hardliners and Washington, countering narratives of leadership division [19]. Gregory Brew of Eurasia Group said Tehran believes Trump wants to exit the war and is using tough conditions as leverage [27]. Hossein Alizadeh suggested the demands could be designed to be unachievable, reflecting either negotiating tactics or internal factional rivalries [27]. Mona Yacoubian of CSIS said Iran's conditions make it difficult for Trump to find a face-saving exit [27].

Former US Defense Secretary Mark Esper called Iran's conditions "ridiculous" and said they should be rejected [13]. Security expert Richard Weitz stated the US would almost certainly not accept the demands [13]. US Secretary of State Marco Rubio has repeatedly stated that any form of state control over international waters contradicts international law [32].

The UAE's foreign ministry condemned what it called a "hostile Iranian attack" targeting an ADNOC tanker with a missile in the strait [4][7]. ADNOC said 15 of its vessels had been attacked since the war began, including three in one week, with one crew member killed and 20 wounded [4][7]. Saudi Arabia's foreign ministry called Iran's action "a direct attack on global energy security" [11]. Houthi forces claimed responsibility for attacks on Saudi Aramco facilities in Jizan and the port of Mocha, and announced a naval blockade against Saudi ports [1][16][17]. Turkish Foreign Minister Hakan Fidan said a new defense pact between Turkey, Saudi Arabia, and Pakistan was purely defensive and not aimed at Iran, with Egypt expected to join [4][11][16]. Pakistan's foreign ministry said the pact was "intended to strengthen collective deterrence" [4].

TankerTrackers.com reported that at least 56 tankers were conducting covert ship-to-ship transfers in "digital darkness" to move oil through the strait [8]. Chinese state media cited Kpler data showing only 8 vessels transited on August 4, compared to 130-140 pre-war [29]. The Lloyd's Market Association introduced a clause terminating insurance cover for any vessel that pays a transit fee through the strait, which insurance industry representatives said makes any fee-based passage arrangement commercially unworkable [23].

The UN Economic Commission for Latin America and the Caribbean reported that the conflict would affect the region throughout 2026 through inflation, cooling global demand, and monetary policy channels [30]. South Korea's Yonhap news agency reported emergency measures including securing 24 million barrels from the UAE and exploring Russian crude imports for the first time in four years [33]. BBC Swahili documented fuel shortages and price spikes across African countries from Kenya to South Africa [34]. Uzbekistan's Kun.uz reported a 5.1% increase in domestic gasoline prices within two weeks of the conflict's start [36].

In the US Congress, Senator Chris Van Hollen said the war-powers debate was "an opportunity for this Congress to finally take responsibility" [24]. Senator John Kennedy argued that a congressionally forced withdrawal "would be a huge blow to American credibility" [24]. Oil prices have topped $100 a barrel as the standoff continues [24]. Peer-reviewed research published in Ambio warned that attacks on tankers and over a thousand stranded vessels risk large-scale marine pollution and invasive-species bio-invasion in the Gulf [25][35].