'Iran can't hold global economy hostage', says US; 'prepared to go in another direction'

The United States on Sunday warned Iran against holding the regional and global economy “hostage” through restrictions on maritime traffic in the Strait of Hormuz, saying Washington remained committed to diplomacy but was prepared to pursue an alternative course if normal shipping operations were not restored.

Speaking at the Manama Dialogue security forum in Bahrain, US Assistant Secretary of State for Near Eastern Affairs Donald Blome said diplomatic channels with Tehran remained open, but warned that Washington's willingness to negotiate should not be mistaken for unlimited patience.

“The hand of negotiation has been extended and those channels have continued to be open and active. At the same time, we've been also prepared to go in another direction. We just can't allow Iran to take this region and the global economy hostage,” Blome said, according to Al Jazeera.

His remarks came amid renewed diplomatic efforts involving Qatar to resolve the impasse over the Strait of Hormuz, a crucial maritime passage for international oil and gas shipments.

𝗜𝗿𝗮𝗻 𝗼𝗳𝗳𝗲𝗿𝘀 𝘁𝘄𝗼-𝗱𝗮𝘆 𝗿𝗲𝗼𝗽𝗲𝗻𝗶𝗻𝗴 𝗽𝗹𝗮𝗻

Iranian Foreign Minister Abbas Araghchi said discussions with Qatari mediators were continuing over a proposal that could allow the Strait of Hormuz to reopen within two days if Washington accepted Tehran's conditions.

Araghchi said the proposed implementation period had initially been five days but was subsequently shortened during negotiations.

“The Qatari side proposed shortening the implementation period of the Iranian proposal to five days. We have reached a proposal at this stage that reduces the implementation period to two days,” he said.

The Iranian foreign minister maintained that reopening the waterway would depend on the United States meeting several political, military and economic demands.

These included lifting sanctions imposed after the Islamabad memorandum, reducing American military forces in the region, restoring oil waivers and releasing frozen Iranian funds, including money held in Qatar.

Tehran also sought recognition of shipping routes in the Strait of Hormuz that it had discussed with Oman, alongside the closure of other routes.

Araghchi said implementing Iran's conditions would create an opportunity to resume negotiations with Washington on unresolved issues.

𝗧𝗲𝗵𝗿𝗮𝗻 𝗶𝗻𝘀𝗶𝘀𝘁𝘀 𝗼𝗻 𝘀𝗲𝘃𝗲𝗻 𝗰𝗼𝗻𝗱𝗶𝘁𝗶𝗼𝗻𝘀

Iran's senior security official Mohsen Rezaei reiterated that the strategic waterway would remain closed unless Tehran's seven conditions were fulfilled.

He said the demands differed from the framework discussed during earlier negotiations in Islamabad and insisted that meaningful diplomatic engagement could proceed only after Iran's requirements were accepted.

In a post on X, Rezaei warned that Iran would respond forcefully to any renewed military action against the country.

He maintained that Tehran remained open to diplomacy but would defend itself against further attacks.

Iran's demands also included an end to hostilities on all fronts, particularly Israeli military operations in Lebanon.

𝗤𝗮𝘁𝗮𝗿 𝗺𝗲𝗱𝗶𝗮𝘁𝗲𝘀 𝗮𝗺𝗶𝗱 𝗿𝗲𝗻𝗲𝘄𝗲𝗱 𝘁𝗲𝗻𝘀𝗶𝗼𝗻𝘀

The latest exchanges followed diplomatic communication between Washington and Tehran through Qatari intermediaries, including a letter reportedly delivered from US Vice President JD Vance to Rezaei.

The Iranian official described the communication as reflecting a change in Washington's approach, although substantial differences remained over the conditions for reopening the waterway.

US President Donald Trump has also indicated that discussions with Iran were continuing, while maintaining that Washington retained military options if diplomacy failed.

Trump recently said Tehran wanted to reach an agreement but questioned its reliability as a negotiating partner.

The Strait of Hormuz remains central to the dispute because disruptions to maritime traffic through the passage have affected international energy supplies and heightened concerns over global economic stability.

While Qatar's mediation efforts have raised the possibility of a negotiated arrangement, no final agreement has been announced on reopening the waterway or resolving the broader conflict.

The competing positions leave Washington demanding the restoration of normal shipping traffic and Tehran insisting on sanctions relief and security guarantees before taking further steps.