American and Iranian negotiators are considering a phased deal that would allow Tehran to reopen the Strait of Hormuz in exchange for Washington easing its economic blockade on Iran.

American and Iranian negotiators are considering a phased deal that would allow Tehran to reopen the Strait of Hormuz in exchange for Washington easing its economic blockade on Iran.

The talks face a major hurdle as both sides want to maintain leverage: the US controls sanctions pressure, while Iran controls access to a key global energy route.

Iran may drop its demand for transit fees in exchange for economic relief, but wants to maintain administrative control over the strait. The Gulf states oppose any arrangement that could allow Iran to use Hormuz as leverage.

Source: Reuters