Iran's 7-hour leadership meeting signals sanctions deadlock

Iranian President Masoud Pezeshkian held a seven-to-eight-hour meeting with Supreme Leader Mojtaba Khamenei on Saturday, the longest since the US-Iran war began, as Tehran confronts intensified banking sanctions, a naval blockade and an ongoing conflict that has crippled its economy.

"We currently have no negotiations with the United States," Seyyed Abbas Araghchi, Iran's foreign minister, said Sunday. "Intermediaries are still making efforts to find ways to resume negotiations. From our perspective, there can be no resumption of talks until the United States ends its violations of the Memorandum of Understanding and makes amends for the breaches it has committed."

The meeting covered "the country's issues and problems, especially meeting the people's livelihood needs, the current conditions of the third imposed war and the future, developments in the military field, strategies for securing resources," according to state broadcaster IRIB. Managing the value of the Iranian currency, energy exports and economic interactions with foreign parties were also discussed.

The diplomatic impasse carries direct consequences for global energy markets. Iran's Revolutionary Guards have maintained a blockade of the Strait of Hormuz — which handles roughly 21 percent of global oil trade — until the US meets a list of demands including an end to sanctions, the release of frozen assets and compensation for wartime damage. The Supreme National Security Council laid out those conditions on Saturday, echoing terms from the June memorandum that included a provision for a $300 billion reconstruction fund.

Strait of Hormuz blockade holds 21% of global oil trade

The blockade has rattled allies, roiled markets and driven up prices. US President Donald Trump said Sunday he was "low-keying it" in his approach to Tehran, telling Axios: "We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money."

Iran's Revolutionary Guards said Sunday their strategy was to maintain the blockade "until the enemy accepts all our conditions... the strait is now actually a theatre of war for us and not just a waterway." Traffic through Hormuz has dropped significantly during ongoing attacks, with at least one tanker struck on Saturday, according to the UAE.

The last time Iran imposed a sustained maritime disruption of this scale was during the 1980s Tanker War, when attacks in the Gulf pushed crude prices to record highs for the era. Today, the stakes are amplified by the parallel Houthi blockade on Saudi ports in the Red Sea, cutting off the kingdom's only other maritime export route. Saudi Arabia extinguished a fire at a Red Sea oil facility on Sunday after Houthi strikes, while a medical source in Yemen's Mokha reported three civilians and eight military personnel killed.

Oman's foreign ministry said negotiations on navigation arrangements for the strait are "proceeding," while Araghchi said discussions with Muscat were "approaching the final stages." But the Guards' insistence on maintaining the blockade suggests a prolonged standoff.

New supreme leader's silence fuels control questions

The seven-to-eight-hour duration of the leadership meeting points to deep internal deliberation over how to navigate the sanctions regime. The US and Israel killed former Supreme Leader Ali Khamenei on February 28, and his son Mojtaba was selected by the Assembly of Experts in early March. The new leader has made no public appearances since his election, with only written statements and letters published under his name.

Pezeshkian said communication with Khamenei is very "difficult at the moment," but his presence is a "great strength" for the country to continue its path. Trump has repeatedly expressed confusion over Iran's power structure, saying Iran is having a very hard time "figuring out who their leader is," while claiming there was an internal struggle between hardliners and moderates.

Iran has faced a worsening economy from decades of international sanctions and additional pressure from the war. Tehran has promoted a "resistance economy" strategy since 2010 to reduce its dependence on foreign markets, and in May, Khamenei urged lawmakers to pass legislation supporting the strategy and easing economic pressure.

If Tehran holds its line on Hormuz, oil prices face continued upward pressure as the US midterm elections approach in November. If intermediaries broker a breakthrough, the release of Iranian barrels could ease supply constraints — but the $300 billion reconstruction fund demand and the compensation clause remain formidable hurdles.

This article is for informational purposes only and does not constitute investment advice.