The latest

Iran called on other countries not to participate in new US economic measures against Tehran, describing the sanctions as “state terrorism,” as Qatar intensified diplomatic efforts to restore open shipping through the Strait of Hormuz. The waterway, which carried 20% of global oil supplies before war began six months ago, remains the largest obstacle to a peace agreement amid sharply reduced vessel traffic.

Details

• Sanctions campaign: President Donald Trump’s administration warned countries on Monday to reduce business ties with Iran or face secondary sanctions, calling the campaign an “economic D-Day.” The Treasury initially stopped short of imposing penalties, but on Friday targeted a Hong Kong-based entity and a person linked to Iran’s Bank Melli.
• Iranian response: Iran’s Foreign Ministry said international law obliged countries to refrain from enforcing US sanctions. It argued that participation would amount to complicity in one state unlawfully imposing its will on independent countries, and called the measures a “crime against humanity” threatening millions of civilians’ health and livelihoods.
• Qatari mediation: Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani said he stressed the importance of restoring pre-war shipping conditions during talks with Iranian leaders in Tehran on Thursday. Iranian Foreign Minister Abbas Araghchi called the discussions “creative” and urged Washington to end military and economic pressure and resume negotiations.
• Diplomatic dispute: Araghchi said restoring diplomacy depended on the United States recognising that pressure does not work. Trump reiterated Thursday that Washington was not talking with Tehran, while the White House said its economic campaign would continue until Iran came to the negotiating table “in a meaningful way.”
• Hormuz conditions: Iran’s Supreme National Security Council secretary, Mohsen Rezaei, said Tehran was preparing conditions for reopening the strait. Previous Iranian demands included ending the US blockade of its ports, compensation and sanctions relief. Washington insists Hormuz must remain an open international waterway.
• Shipping remains thin: US Central Command chief Admiral Brad Cooper said American forces had cleared mines laid by Iran’s Revolutionary Guard and international shipping lanes were open. Ship-tracking services, however, estimated traffic at 5% to 15% of normal levels. Seven commodity vessels crossed Thursday, down from 17 a day earlier and below the 10-day average of 15.

Background

Qatar and Pakistan brokered a June memorandum that produced a ceasefire, but it quickly unravelled over US-Iranian disagreements concerning Hormuz. After the United States and Israel launched the war on February 28, Tehran threatened vessels crossing without its authorisation, pushing traffic lower and oil prices higher.

What’s next

Attention turns to Iran’s forthcoming list of conditions for reopening Hormuz and whether daily vessel crossings rise above the recent 10-day average of 15, two indicators central to renewed negotiations.