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Iran's arrival in Oman for negotiations

Iranian Foreign Minister Abbas Araghchi arrived in Muscat, Oman, on July 11, 2026, leading a high-ranking delegation for talks on the administration of the Strait of Hormuz, regional developments, and bilateral relations . This follows an earlier visit on June 22, when Araghchi and Parliament Speaker Mohammad Bagher Ghalibaf jointly traveled to Oman for initial talks on "arrangements for managing the Strait of Hormuz" .

U.S. demand for a public commitment on the strait

The Trump administration is demanding that Iran publicly commit to keeping the Strait of Hormuz open and secure for free transit . This demand came after Iranian forces fired on commercial vessels. U.S. officials have insisted that private assurances are insufficient and that a public pledge is necessary to proceed with the diplomatic track .

Iran's private admission that the attacks were a mistake

According to senior U.S. officials, Iranian officials privately told advisers to President Trump that they "made a mistake" by shooting at commercial ships in the Strait of Hormuz . Tehran reportedly attributed the attacks to an "errant" sect of hardliners who were acting without approval and trying to undermine the negotiations . Iran conveyed that it wants to continue talking despite the attacks .

U.S. revocation of Iran's oil export license and new sanctions

On July 7, 2026, the Treasury Department formally revoked General License X1 — the authorization that had permitted the sale of Iranian crude oil, petrochemical products, and petroleum products — after Iran attacked three commercial tankers in the strait . A U.S. official called the attacks "wholly unacceptable" .

Separately, in May 2026, the U.S. State Department sanctioned several Iranian currency exchange houses, associated personnel, front companies, and 19 vessels as part of the "Economic Fury" campaign targeting Iran's sanctions-evasion networks and the financing of destabilizing activities . OFAC records also show a General License Y authorizing wind-down of transactions involving Smart Global Limited, linked to Khamenei-related financing networks .

Diplomatic timeline under the June MoU (Pakistan-brokered)

On June 17–18, 2026, Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding to end the U.S.-Iran war, halt the U.S. blockade, and reopen the Strait of Hormuz . Pakistan's Prime Minister Shehbaz Sharif mediated the agreement, with Qatar also facilitating parallel talks . Under the MoU, substantive talks on Iran's nuclear program were deferred until after sanctions relief and the reopening of the strait .

Expiration deadline and broader stakes

The MoU faces severe strain. Both sides threatened on July 8 to scuttle the agreement after the tanker attacks and U.S. strikes . Traffic through the strait remains at roughly one-third to one-fifth of pre-war levels . The U.S. also revoked the oil waiver on July 7, reimposing maximum economic pressure. If the diplomacy collapses, analysts warn of a return to open conflict, as Iran sees its hold on the strait as its chief bargaining chip and the U.S. demands unimpeded global oil transit .