‘Washington, Tehran exploring phased way out of war’

Washington and Tehran are discussing a phased approach to end the conflict, according to sources familiar with the negotiations. The key issue is Tehran reopening the Strait of Hormuz and the US lifting its economic blockade on Iran. Hormuz, through which about a fifth of global oil flows, is the central point of contention. Iran seeks relief from the blockade that is crippling its economy, while the US wants unrestricted passage for ships carrying the vital oil.

Both parties are hesitant to make the first move, leading to the proposal of a staged arrangement. Iran would open Hormuz and lift the blockade in exchange for an end to the sanctions. The US president, Donald Trump, has indicated he may agree to an interim deal after the November midterm elections. However, a senior European official noted that Iran arrived in New York with an extensive list of demands.

The US remains reluctant to act, citing Iran's financial desperation and the benefits of maintaining the blockade. Dennis Ross, a former US negotiator, estimates the likelihood of a deal before the midterms at around 30%, but acknowledges both sides have reasons to reach an agreement sooner. Iran, while open to diplomacy, is preparing for a potential resumption of conflict.

The Gulf states, seeking resolution without permanent control over strategic waterways, are pressing Trump for a clear post-election strategy, emphasizing their opposition to Iranian control of Hormuz. The UAE recently suspended flights from Iranian airlines in response to US sanctions.