The Strait of Hormuz: Iran’s Bargaining Chip – Uranium Still Contended Amid Negotiations 40 Days Of United States Blockade
Iran advanced efforts to formalize control mechanisms in the Strait of Hormuz during the ceasefire period. Vessels without formal arrangements with the Islamic Revolutionary Guards Corps faced transit fees of roughly $150,000, framed as security or insurance payments to avoid interference. Sixteen foreign ships had already navigated under this system as Iran pushed for cargo tracking and route enforcement.
Discussions between Iran and Oman focused on a potential joint control arrangement for the waterway. Reports show Iran is defining new maritime zones through the Persian Gulf Strait Authority, extending its claims and affecting Emirati waters. These steps occurred alongside Iran’s review of United States proposals and insistence on retaining its highly enriched uranium stockpile.
Negotiations Advance Slightly Despite Core Disputes
The Institute for the Study of War (ISW) reported on May 22, 2026, that United States-Iran negotiations had achieved slight progress. Yet Iran’s highly enriched uranium stockpile and control over the Strait of Hormuz stood out as major sticking points. An unspecified senior Iranian source told Reuters, as cited by the Institute for the Study of War, that both sides narrowed some gaps in their demands.
Pakistani diplomatic sources, cited by the ISW, informed Saudi outlet Al Hadath that handling Iran’s uranium enrichment remained the primary obstacle. United States Secretary of State Marco Rubio echoed this view, noting slight progress while insisting Iran could not obtain a nuclear weapon or maintain control of the Strait of Hormuz. Iranian officials showed no signs of agreeing to move their highly enriched uranium out of the country.
Iranian officials showed no signs of agreeing to move their highly enriched uranium stockpile out of the country. Consequently, American officials described an outcome where Iran retains control over regional shipping lanes as completely unfeasible. According to SkyNews, which the ISW cited, Rubio cautioned that the president maintains other options if these diplomatic channels fail to resolve the standoff over the Strait of Hormuz, uranium, vessels, and international efforts to keep Iran from developing weapons-grade material.
Iran Frames Strait of Hormuz Activities as Security Services
Iran has launched an information campaign to present its actions in the Strait of Hormuz as legitimate maritime security measures. The New York Times reported on May 21, 2026, according to ISW analysis, that Iran and Oman discussed charging vessels fees for maritime services rather than passage tolls. Oman had initially rejected a partnership with Iran, but may be willing to use its regional influence.
The Islamic Revolutionary Guards Corps (IRGC) Navy stated on May 22, 2026, that 35 vessels transited the corridor in the prior 24 hours after receiving Iranian permission and security guarantees. Bloomberg and Reuters reports, referenced in the ISW update, indicated that some vessels cooperating with the newly established Persian Gulf Strait Authority (PSGA) have faced payment demands reaching up to $2 million for safe passage, while most paid around $150,000. Gulf neighbors rejected these efforts to control traffic through the Strait of Hormuz.
Bahrain, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) warned the International Maritime Organization that Iran’s moves could set a dangerous precedent. The ISW assessed that full freedom of navigation through the Strait of Hormuz remains essential for any lasting resolution. Iranian leaders appear positioned to seek veto power over access to the strategic waterway, looking to reshape the geopolitical balance of the international waterway.
Iraqi Efforts Target Iranian-Backed Militia Activities
On May 22, 2026, the Iraqi Shia Coordination Framework decided to create a federal government committee to investigate recent drone attacks targeting Saudi Arabia and the UAE. The attack was previously reported on May 17, 2026, when the UAE intercepted two of three drones as Saudi Arabia stopped three drones that entered its territory. One drone hit the Barakah Nuclear Power Plant in the UAE.
The committee will include security specialists and representatives from key ministries to review evidence in both Gulf states and within Iraq. Deputy Head of the Executive Council for Harakat Hezbollah al Nujaba, Hussein al Saidi, rejected disarmament of Iranian-backed militias and their integration into Iraq’s security forces. He described related proposals as a purely American project, reported by ISW, citing Shafaq News.
Iran Submits Maximalist Counterproposal
Iran sent a counterproposal to Pakistani mediators on May 23, 2026, that front-loaded its demands to end American threats, provide financial relief, and maintain management of the Strait of Hormuz. The ISW observed that this approach delayed discussion of Iran’s nuclear program and reflected confidence in its negotiating position. IRGC-affiliated Tasnim News Agency reported the details of the offer.
The proposal called for an end to fighting on all fronts, including Lebanon, and the withdrawal of United States forces from the region. It rejected transferring Iran’s uranium stockpile and dismantling nuclear facilities while demanding the immediate lifting of sanctions and the release of frozen assets. Iranian officials insisted the Strait of Hormuz would remain under their influence, stating no negotiations would progress until the naval blockade of its ports ended.
Sticking Points on Uranium and Vessels Persist in Talks
Iranian Foreign Affairs Ministry Spokesperson Esmaeil Baghaei stated on May 23, 2026, that the Strait of Hormuz does not concern the United States. He suggested Iran and Oman should define mechanisms as coastal states. According to the ISW, Tasnim News Agency added that Iran demanded no return to the pre-war legal regime for the waterway.
The IRGC Navy reported on May 23, 2026, that 25 vessels crossed the Strait of Hormuz after receiving permission and traveling under its coordination. In a Fars News report, cited by the ISW, Iran will only commit to restoring transit numbers to pre-war levels while choosing which specific ships receive approval. President Donald Trump said he would decide by May 24, 2026, whether to resume strikes on Iran.
According to the ISW, President Donald Trump spoke with regional leaders on May 23, 2026, to discuss the latest proposal and emphasized he would only accept a deal that addresses uranium enrichment. Negotiators continued exchanging drafts daily with limited advancement, though a source close to negotiations told the Washington Times that a final draft proposal might be completed soon.
Concerns Grow Over Iranian-Backed Iraqi Militia Plots
United States media reported that senior Kataib Hezbollah commander Mohammad Baqer Saad Dawoud al Saadi planned attacks targeting members of President Donald Trump’s family before his arrest on May 15, 2026. Authorities charged Saadi with plotting at least 20 attacks on civilians across Europe, Canada, and the United States after being detained by Turkey and extradited. The ISW cited a New York Post article where a Senior Iraqi military officer said Saadi acted in retaliation for the 2020 strike that killed Qasem Soleimani.
A researcher previously held hostage by Kataib Hezbollah described Saadi as a close associate of Soleimani and current Quds Force commander Esmail Ghaani. The group also claimed responsibility for the abduction of American journalist Shelly Kittleson in Baghdad.
