US isn’t offering upfront sanctions relief to reopen Hormuz, Rubio says

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The U.S. isn’t offering or discussing granting Iran sanctions relief solely for reopening the Strait of Hormuz, Secretary of State Marco Rubio said Tuesday.

Progress in the talks could come as soon as this week but also possibly next, he said, adding that the discussions are proceeding in two phases. The first phase would see Iran reopen the Strait of Hormuz and make clear that Tehran won’t charge transiting ships a toll or fire on them. They must also agree to follow on discussions on their nuclear program, where broader sanctions relief could be discussed.

“Any sanctions relief is conditions-based, which means it has to be in return for the reason why those sanctions were put in place in the first place, which is their nuclear program,” Rubio said in response to questions from senators during a Senate Foreign Relations Committee hearing.

Asked by Sen. Chris Murphy (D-Conn.) whether the U.S. will grant such relief as a carrot to reopen the Strait of Hormuz, Rubio responded, “no, that’s not been discussed, that’s not been offered.”

It was unclear what Rubio meant by sanctions, however, and his comments might not exclude the possibility that Qatar and other countries that hold frozen Iranian funds could release them.

Rubio repeated assessments by others in the administration that the negotiation process with Iran is moving slowly because of internal divisions but also because Tehran’s leaders are communicating via courier and in hiding to avoid targeting by the U.S. and Israel.

The Strait of Hormuz has been effectively closed for three months, sending oil prices above $100 a barrel. Trump’s approval rating has fallen to the lowest levels of his second term as gas tops $4 a gallon nationwide.

Trump has repeatedly signaled a deal is within reach, then stepped back to demand additional concessions, including on the disposition of Iran’s enriched uranium. Tehran has complicated matters from its side as well, rejecting proposed ceasefire frameworks and holding firm on enrichment rights.

If Iran agrees to reopen the strait, the U.S. and Iran would then discuss what happens to highly enriched uranium that is buried underground after U.S. and Israeli attacks on Iran’s nuclear sites last year, as well as the future of Iran’s nuclear work, Rubio said.

Asked whether Iran’s Supreme Leader Mojtaba Khamenei is alive, Rubio said he believes he is, even though he hasn’t been seen in public.

“There are indications out there that he is increasingly engaging at some level,” he said.

Tehran’s government is fractured over how to respond to U.S. proposals as economic pressure mounts, Rubio said.

“There’s definitely elements within that regime that understand” that the poor economic conditions will spark unrest, Rubio said, adding “there are other elements of it that are more immune to it, and perhaps more resistant to making agreements.”

“Internally it takes time to get responses from them, sometimes upward to five or six days,” he said.

Iran’s mission to the United Nations did not immediately respond to a request for comment.