US offers sanctions relief for Iran's reopening of Strait of Hormuz

The United States has offered to lift sanctions and end its naval blockade of Iran in exchange for Tehran reopening the Strait of Hormuz and halting proxy attacks, according to a report citing a senior source. The proposal, reportedly conveyed by Pakistan's army chief during a visit to Tehran, would cancel the newly launched "Operation Economic Outcast" campaign. Iran's core demands remain unchanged, including $300 billion in compensation and the release of frozen assets. The offer follows a collapsed June 2026 interim understanding that had temporarily eased tensions. Iranian officials have not formally responded, while China has rejected expectations of altering its economic ties with Iran.