Iran demands temporary reopening of trade routes amid food shortages, surging inflation

Latest Iranian proposal, rejected by the US, calls for immediate, temporary ceasefire to help alleviate worsening shortages in Iran.

By World Israel News Staff

Iran is seeking a temporary deal with the United States securing the reopening of the Strait of Hormuz in order to alleviate worsening shortages in the Islamic Republic, according to an Israel Hayom report.

The United States rejected an Iranian request to begin reopening the Strait of Hormuz to Iranian ships and tankers after Tehran’s response to a proposed ceasefire document left its previous positions largely unchanged.

The Iranian response centered on a roughly one-month ceasefire that would allow negotiations over its nuclear program and other issues while also calling for the gradual reopening of the Strait of Hormuz.

Iran demanded that Washington take the first steps toward reopening the strait.

Iranian officials said the move was needed because the country lacks enough storage capacity for crude oil, raising fears that oil could leak from wells and cause major environmental damage. Satellite images reportedly show a large oil slick near Kharg Island.

Tehran also cited worsening shortages of basic goods caused by the blockade on ships entering Iran, as well as a deepening cash shortage that has made it harder to buy wheat, medicine and medical equipment.

In contacts surrounding the official delivery of the document, Iranian officials described a deteriorating domestic situation and warned of a real risk of hunger in parts of the country.

The economic pressure has also hit the labor market. Unemployment in Iran has reportedly climbed above 50%, while many of those still employed are earning very little. The US Treasury Department confirmed reports that civil servants are not receiving salaries.

According to US intelligence, large parts of Iran’s self-employed workforce, particularly workers dependent on the internet and advanced industries, have lost major portions of their income and are effectively unemployed.

Washington has expressed willingness to allow ships carrying basic goods through the strait and to release some Iranian funds frozen abroad, but only under oversight meant to ensure the money is used for humanitarian purposes.

The Treasury Department said it is also intensifying efforts to locate and take control of accounts and funds tied to the Islamic Revolutionary Guard Corps. US officials believe financial pressure on senior IRGC figures could push them to soften their opposition to a deal.

Washington had expected Iran’s response to include at least a partial answer on the nuclear issue.

But a US official told Israel Hayom that the understandings previously discussed appear to be at the center of a dispute between Iran’s political leadership and senior IRGC commanders and therefore were not formally included in the written response.

The official said any agreement with Iran would ultimately be tested on the nuclear issue and that the economic blockade remains Washington’s strongest leverage for achieving the central goal of the war: long-term neutralization of the Iranian nuclear threat.

Because of the internal disagreement in Tehran, the White House rejected Iran’s request to reopen Hormuz to Iranian shipping, at least until it receives guarantees that all parts of the regime will accept the nuclear terms under discussion.

US officials remain prepared to ease the naval blockade and allow limited passage of tankers and ships carrying wheat and other basic goods. But they are demanding assurances that any commitments made by Iran’s political leadership will not later be overturned by IRGC commanders.