Iran says Hormuz stays closed until US honours Islamabad deal; oil near $110
Foreign Minister Abbas Araghchi said ships will not move freely through the strait until Washington accepts Tehran's terms. Iranian officials also warned that undersea cables and data centres could become targets if fighting resumes.
At a glance
- Iran's Foreign Minister Abbas Araghchi said the Strait of Hormuz will stay closed to normal traffic until the US accepts Iran's conditions and honours the Islamabad Memorandum of Understanding.
- He said Iran will not start new talks on other issues until earlier commitments are met; indirect contacts continue through Pakistan and Qatar.
- US Vice-President JD Vance said Iran must 'significantly reduce' its uranium-enrichment capacity before Washington agrees to end the war.
- Iranian officials warned that undersea cables, data centres and AI centres could be targeted if fighting resumes; Brent crude traded around $110 a barrel.
Iran has said the Strait of Hormuz will stay closed to normal shipping until the United States accepts its conditions. Foreign Minister Abbas Araghchi said on Wednesday, October 21, that Washington must first honour the Islamabad Memorandum of Understanding reached in earlier Pakistan-mediated contacts.
What Araghchi said
In a television interview with an Iraqi channel, Araghchi said:
- "The American side must accept our conditions to open the strait to ships and vessels."
- Until an agreement or understanding on the strait is reached, "it will not be open to everyone".
- Iran wants the US to adhere to "all the commitments" in the Islamabad memorandum. Only then could broader talks follow.
- Under Iran's earlier seven-day plan, the strait was to be "fully opened on the sixth day". He said Washington signalled agreement but then sought extra clauses on issues already covered.
- Iran "will not surrender in any way" to sanctions or military threats.
Araghchi also argued that the strait lies in Iranian and Omani waters, and that Iran and Oman have agreed shipping lanes that ships would use if it reopens.
The US position
Vice-President JD Vance said Iran must "significantly reduce its uranium-enrichment capacity" before the US agrees to end the war. Iran calls the nuclear issue a pretext. US officials have said there will be no new strikes before the November 3 midterm elections, but planning for possible renewed action has been reported, and US forces in the region are being reinforced.
New threats
Iranian officials warned that if fighting resumes, undersea internet cables, data centres and AI centres in the region could become targets. Qatar warned that threats to cables, sea mines and oil spills in the strait would harm the whole region. Iran's Revolutionary Guards also claimed an oil supertanker exploded after hitting a mine near the strait; the claim has not been independently confirmed.
Pakistan's role
Indirect talks continue through Pakistan and Qatar. Field Marshal Asim Munir travelled to Tehran on Tuesday with an official delegation to help mediate. Iranian officials see little chance of a breakthrough before the US elections.
Markets and travel
| Indicator | October 21 |
|---|---|
| Brent crude | About $110 a barrel (hit $111.99 on Tuesday, highest since May 20) |
| WTI crude | About $98.8 a barrel |
| Strait of Hormuz | Closed to normal traffic |
| Gulf flights | Many airlines suspend Saudi routes until at least October 24 |
Why it matters
Before the conflict, roughly a fifth of the world's oil and a large share of its liquefied natural gas passed through Hormuz. A prolonged closure keeps fuel prices high worldwide, including in Pakistan, which depends on Gulf oil and LNG and has raised petrol prices again this month. Millions of South Asian workers in the Gulf are also affected by the security situation.
What happens next
Watch for any response from Washington to Araghchi's conditions, further mediation by Pakistan and Qatar, and whether the US holds off on military action before the November 3 elections.
Questions people are asking
Is the Strait of Hormuz open?
No. As of October 21, 2026, Iran says the strait will not be open to all shipping until the US accepts its conditions and honours commitments in the Islamabad Memorandum of Understanding.
What is the Islamabad Memorandum of Understanding?
It is the understanding reached in earlier Pakistan-mediated contacts between Iran and the United States. Iran says Washington must meet all its commitments before new negotiations can begin. Its full text has not been published.
Why are oil prices so high?
The near-closure of the Strait of Hormuz, through which a large share of the world's oil and gas normally passes, and attacks on shipping have cut supplies. Brent crude traded around $110 a barrel on October 21, 2026.
