US and Iran Explore Phased Deal on Hormuz and Economic Blockade

US and Iranian negotiators in New York are exploring a phased deal to end their conflict, involving Tehran reopening the Strait of Hormuz in exchange for Washington lifting its economic blockade, sources said. The strait is the central bargaining chip in the nearly seven-month conflict. Neither side wants to surrender its leverage first, complicating talks, with Iran seeking relief from a blockade strangling its economy and the US demanding free passage for oil shipments. A senior Iranian official proposed a staged arrangement, potentially including access to frozen assets, while President Trump sees a possible deal after November midterm elections. Former US negotiator Dennis Ross estimated only a 30 percent chance of a pre-election agreement, noting a deal could benefit Trump by easing Gulf tensions and lowering gasoline prices. Gulf states reject any Iranian control of Hormuz, and Tehran is preparing for possible renewed war, with one official saying "our fingers are on the trigger."