Prospects for reopening the Strait of Hormuz remained uncertain Tuesday as Washington said an agreement could come by Wednesday, while Tehran linked normal shipping to transit fees, sanctions relief, security guarantees and an end to the US naval blockade.
At the center of the negotiations is a proposed arrangement under which ships would enter the Persian Gulf through an Iranian-controlled route and leave through a route controlled by Oman.
Whether Iran could collect service or transit fees remains a key point of dispute, with Washington opposing any charges.
Iran is also seeking a role in monitoring vessels leaving the Persian Gulf. A senior Iranian source involved in the negotiations told Reuters that Tehran wanted control over inbound traffic and oversight of outbound ships, including the ability to intervene if necessary. Oman would clear departing vessels after notifying Iran, the source said.
The Wall Street Journal, citing regional mediators, said Iranian diplomats initially welcomed the proposed division of the routes because it preserved some authority for Tehran.
Iran has also demanded the right to collect transit fees, potentially shared with Oman, alongside guarantees against renewed attacks, relief from oil sanctions and an end to the US blockade.
The United States and regional governments rejected the proposed fees and sought assurances that Iran and its proxy groups would not threaten their territories, according to the report. The dispute leaves the sides divided over whether the strait should reopen before Washington offers concessions or only after Tehran’s wider conditions are met.
The latest proposal has yet to receive a formal response from the Revolutionary Guards, the Wall Street Journal reported. Some IRGC officials told mediators they would reject any agreement that did not recognize Iran’s claim to control the strait, while mediators have questioned whether Iranian diplomats have sufficient authority to finalize a deal.
Separately, Tehran indicated that an Iran-Oman shipping arrangement would not by itself restore normal traffic.
The IRGC-affiliated Fars News reported, citing a source close to Iran’s negotiating team, that the waterway would not fully reopen unless the United States halted its attacks and fulfilled Iran’s conditions.
Despite those differences, US Treasury Secretary Scott Bessent said an agreement could be reached as early as Wednesday. Secretary of State Marco Rubio also said discussions with Iran and Oman had made progress but had not yet produced a final deal.
The diplomatic push continued despite a fresh maritime incident Tuesday, when a cargo vessel was hit by an unknown projectile off Oman. The United Kingdom Maritime Trade Operations did not identify those responsible, but the attack underscored the continuing risks to commercial shipping while negotiations remained unresolved.
Pezeshkian could not see the man beside him and later asked whether the voice he had heard had really belonged to the supreme leader, according to the sources.
Their account of the only known meeting between Pezeshkian and the Islamic Republic’s third supreme leader differs sharply from the version the president has told in public.
In mid-May, Pezeshkian told a gathering of trade association representatives that he had spent two and a half hours with the new leader “in a cordial atmosphere.” Iran International’s sources said the encounter lasted only a few minutes, after which the president was asked to leave.
The meeting itself was a concession extracted under pressure. Khamenei's office agreed to it only after repeated requests from Pezeshkian and his threat to resign, the sources said, and the president was informed that, contrary to standard practice, he would not be received at the leader's usual residence.
Instead, his security detail delivered him to an undisclosed location somewhere in Tehran. There he was taken from his own vehicle and seated in the back of a commercial car with tinted windows, where, apparently, Khamenei was already waiting. The spot was dark enough that the two men could not see each other, and Khamenei's guards did not permit a handshake. The conversation was carried entirely by voice.
The treatment reportedly angered Pezeshkian, who regarded it as humiliating. According to individuals in the president's office, he later asked whether the person beside him had in fact been the supreme leader, since he had only heard a voice in the dark.
It is unclear whether the remark was an expression of anger or genuine doubt. Pezeshkian has since requested a second meeting, this time at the leader's residence. The request has so far been denied.
A leader nobody sees
The president's uncertainty lands in a country that has neither seen nor heard its new ruler. In the roughly five months since the Assembly of Experts selected Mojtaba Khamenei to succeed his father, not a single audio recording or video of him has been released.
The silence has become a subject inside Iran's own state-aligned press. On Sunday, the website of the Hamshahri newspaper published a short video claiming that foreign intelligence services could trace any audio recording of the new leader and locate his hideout by measuring acoustic energy, analyzing the frequency signature of the electrical grid and examining background noise. The video added that spy agencies could analyze vocal-tract resonances to determine the extent of his injuries or anxiety, a claim that fed rather than calmed speculation about his condition.
The world's assessments diverge just as sharply. Three weeks ago, US President Donald Trump put the odds that Mojtaba Khamenei had been killed at 90 percent. Israel's prime minister recently said he is alive.
Even the government's own senior figures do not tell one story. "I have not seen Mojtaba Khamenei during this period, and only a limited number of people have met with him," Foreign Minister Abbas Araghchi said in a July interview with the online program The Story of the War. One day later, Pezeshkian said in a speech that the number of meetings with the leader had increased.
A resignation he cannot repeat
The strain between the president and the leader's office has since spilled into the open. In a video circulated on social media on Monday, Mohammad Bagher Kharrazi, a Khamenei family relative by marriage, said the new leader has formally warned that Pezeshkian's next resignation, after 28 threats or attempts, will be his last.
"He declared it officially," Kharrazi said, "and that is why they packed up, turned down the wick, and stopped threatening to resign."
The warning matches Iran International's earlier reporting. A knowledgeable source said in late May that Pezeshkian had sent a formal letter to the leader's office asking to step down, a resignation driven by what the president described as the Revolutionary Guards' complete control over the running of the country.
A president who cannot resign, then, serves a leader he cannot see. Five months into the new reign, Mojtaba Khamenei remains unseen, unheard and unrecorded, a ruler his own president has met exactly once, in the dark, and still cannot be certain he has met at all.
The figures, presented at a public event hosted by the University of Tehran's Faculty of Urban Planning, offer the most detailed breakdown yet of damage across the capital following the conflict.
The report says District 4 in northeastern Tehran recorded the highest number of strikes, followed by District 21 in the west, District 1 in the north and District 22 in the northwest.
"The number of strikes in District 4 alone exceeded the combined total recorded in some provinces," Hossein Nouhi, a certified construction expert in Tehran's municipality, said during the event.
According to the report by Tehran Municipality's Urban Planning and Architecture Department, District 4 was hit 90 times, District 21 Tehran sustained 62 strikes, District 1 recorded 57 and District 22 recorded 55. District 17 in southwestern Tehran was the least affected, with three reported strikes.
Housing damage
The municipality said 50,849 residential units across Tehran sustained damage ranging from broken windows and doors to complete destruction.
Around 40,000 homes required minor repairs, about 8,900 suffered more extensive architectural damage, 415 buildings required structural reinforcement or reconstruction and 2,042 homes were completely destroyed and must be rebuilt, according to the report.
District 4 recorded the largest number of damaged residential units with 7,948, followed by District 2 with 4,037, District 15 with 3,490, District 11 with 3,432, District 21 with 3,205 and District 7 with 3,196.
The report also found that District 7 had the highest number of completely destroyed homes, with 429 units, followed by District 4 with 325 and District 11 with 248.
Estimated economic and environmental costs
Nouhi put the country's economic losses from the 40-day conflict at an estimated $280 billion, excluding psychological impacts and the cost of restoring industrial production. He argued that the conflict highlighted the need to require shelters in new high-rise developments.
Separately, geologist Mehdi Zare’ estimated that military strikes generated around 10 million metric tons of debris across affected urban areas by August 1. He said the waste includes concrete, steel, glass, asbestos and industrial pollutants that could create long-term environmental and public health risks.
Zare’ also said the demolition and cleanup process released millions of tons of greenhouse gases, adding to the environmental impact of the conflict.
