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Iran Conflict 2026
12AUG

Rezaei sets Iran's price for Hormuz

3 min read
14:52UTC

Mohsen Rezaei told China's ambassador on 11 August that the Strait of Hormuz reopens only when the United States ends its war and releases Iran's blocked funds. Pakistan and Qatar spent the same day calling the talks advanced.

ConflictDeveloping
Key takeaway

Iran's security council chief raised the price for reopening Hormuz and dismissed the Oman transit track.

Mohsen Rezaei told China's ambassador Zong Piyu in Tehran on Tuesday 11 August that the Strait of Hormuz reopens when the United States ends its war on Iran and its regional allies and releases Iran's blocked funds, and that Tehran has passed further conditions to Washington through intermediaries 1. Rezaei runs the Supreme National Security Council (SNSC), the Iranian body that turns a negotiated text into state policy. He took it over on 9 August . This was his first public word on the strait since.

He also cut the mediators loose. The Iran-Oman transit arrangement "will have no impact" on the reopening decision, he said. That puts him at odds with his own foreign ministry, where Esmaeil Baqaei spent Monday 10 August naming the four areas Muscat and Tehran have agreed and ruling transit fees out . Abbas Araghchi's Hormuz draft has been waiting on Rezaei's council since 5 August and remains unsigned. He has gone beyond the six conditions his predecessor Mohammad Bagher Zolghadr published on 8 August , adding an end to the American naval blockade.

The mediators spent the same day describing a different negotiation. Pakistan's defence minister Khawaja Asif said things are "shaping up in favor of peace" on the strait, and a Qatari foreign ministry spokesperson called the Iran-Oman talks on reopening to some shipping advanced 2. Neither names a text, a date or a mechanism. Rezaei names the council, the conditions and the man who has to meet them.

A charterer reading both accounts cannot price either, so optimism from Islamabad and Doha moves no war-risk rate. Tehran has now said in public, through the office that decides, that the shipping track is not the one that matters.

Deep Analysis

In plain English

Mohsen Rezaei, a senior Iranian security official, told China's ambassador that Iran will not reopen the Strait of Hormuz (the narrow sea passage a fifth of the world's oil travels through) until the US ends its war on Iran and its allies and unfreezes Iran's blocked money. He said a separate set of talks between Iran and Oman about the strait does not affect that decision. On the same day, officials from Pakistan and Qatar, two countries trying to help end the war, both said things were looking hopeful on Hormuz. Neither gave any details, and their comments do not match what Rezaei just said.

Deep Analysis
Root Causes

Iran signed but never ratified the international treaty guaranteeing transit passage through straits, leaving Tehran's closure and reopening claims resting on domestic authority rather than an instrument it can enforce in law. That gap is why the decision can plausibly sit with either the SNSC or the foreign ministry: no treaty obligation forces Iran to recognise one channel as binding.

Rezaei's appointment to the SNSC on 9 August replaced Mohammad Bagher Zolghadr, who moved to an advisory role; a security-council chief with a military rather than diplomatic background, drawn from the IRGC's own command line, is structurally more likely to frame Hormuz as a security instrument than a shipping-lane technicality.

What could happen next?
  • Risk

    Rezaei's rejection of the Iran-Oman track as irrelevant to reopening creates a public contradiction with Pakistani and Qatari mediators describing that same track as advanced, which could stall the mediation both sides say they want.

  • Meaning

    Rezaei's appointment brings a career IRGC commander into the role that decides Hormuz policy, replacing a predecessor now in an advisory capacity, which shifts the decision away from Iran's diplomatic track and toward its security establishment.

First Reported In

Update #169 · The war moved from the air to the water

Mehr News Agency· 12 Aug 2026
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Different Perspectives
Anwar Gargash, UAE presidential diplomatic adviser
Anwar Gargash, UAE presidential diplomatic adviser
Gargash warned the region cannot stay trapped between "neither war nor peace", naming the stalemate itself as unsustainable for a Gulf state hosting US forces and absorbing the shipping-risk cost without being party to either the strike decisions or the corridor talks.
Shipping and insurance underwriters
Shipping and insurance underwriters
War-risk premiums are still set against an active blockade and a fatal Bab el-Mandeb attack with an unresolved vessel identity. A disabling strike and a diplomatic "advanced" claim pulling in opposite directions gives underwriters no single signal to reprice cover against.
Pakistan and Qatar (Oman corridor mediators)
Pakistan and Qatar (Oman corridor mediators)
Pakistan's defence minister said matters are "shaping up in favor of peace" on Hormuz and a Qatari spokesperson called the Iran-Oman reopening talks advanced. Both are publicly ahead of Tehran's own security council, which has just disowned the deal's significance.
United States Central Command / President Trump
United States Central Command / President Trump
CENTCOM confirmed a helicopter strike disabled a container ship that tried to evade the blockade, and Trump said the US "totally controls" the Strait of Hormuz. Washington is treating evasion of the blockade as grounds for disabling fire rather than the redirection tactic CENTCOM used through July.
Mohsen Rezaei, Iran's Supreme National Security Council
Mohsen Rezaei, Iran's Supreme National Security Council
Rezaei told China's ambassador Hormuz reopens only when the US ends the war and unblocks Iran's funds, and that the Oman transit deal "will have no impact" on that decision. He is drawing a hard line between the technical corridor track and the political settlement his council controls.
Yemen's internationally recognised government and affected communities
Yemen's internationally recognised government and affected communities
SABA reported at least 17 soldiers killed at Saudi-backed camps in eastern Yemen as tanker use of Bab el-Mandeb fell. The fighting adds civilian and supply risks to a route ships use when Hormuz is unsafe.