Iran's Revolutionary Guards have drawn a hard line over the Strait of Hormuz, insisting the vital waterway stays shut until Washington meets a sweeping set of conditions. That list, detailed over the weekend, goes far beyond simple navigation rights, touching on sanctions, frozen assets, and even compensation for wartime damage. The stance effectively transforms one of the world's most critical energy routes into a bargaining chip in a much larger geopolitical standoff. Main Developments Iran's security chief Mohammad Bagher Zolghadr laid out the conditions on Saturday, demanding an end to what he called "war and aggression against Iran and its allies in Lebanon, Palestine, Yemen and Iraq." The list also includes lifting a US counterblockade of Iranian ports, terminating sanctions, releasing frozen assets, and paying compensation for wartime damage, according to the Tasnim news agency. Read also: Turkiye Signals Egypt's Imminent Entry into New Defence Pact Sunday brought a firmer declaration from the Revolutionary Guards, who framed the closure as a deliberate wartime strategy. "The strait is now actually a theatre of war for us and not just a waterway," they said, vowing to maintain the blockade "until the enemy accepts all our conditions." Foreign Minister Abbas Araghchi, while echoing that reopening is conditional, denied any formal negotiations with the US, describing current contacts as merely "exchanging messages" through intermediaries. Tensions on the water are escalating. The United Arab Emirates accused Iran on Saturday of striking a tanker owned by its national oil company during a transit through the strait. Later that day, the United Kingdom Maritime Trade Operations reported a separate ship hit by a projectile off Oman, though it remained unclear if both reports referred to the same vessel. Oman's foreign ministry condemned the "repeated attacks" without naming Iran directly, while cautioning against any actions that could derail ongoing negotiations. Background The current closure stems from late February, when the United States and Israel attacked Iran, prompting Tehran to effectively blockade a waterway that had previously been free to transit. Attacks in the strait subsequently collapsed an April ceasefire. A June memorandum between Iran and the US then set out a path for peace talks, with both sides urged to return to its terms. That June deal envisioned Tehran and Muscat working out future navigation arrangements alongside other Gulf countries, "in line with the applicable international law" — a standard that generally prohibits tolling in international waterways. Araghchi has said those discussions with Oman were "approaching the final stages," even as Iran continues to throttle traffic. Meanwhile, Iran's Houthi allies in Yemen have launched a parallel blockade on Saudi ports in the Red Sea. The group announced Sunday it had struck a Saudi oil facility on the Red Sea coast, after Riyadh said it had extinguished a fire at the site. A medical source in government-held Mokha reported three civilians and eight military personnel killed, with 32 wounded, as Houthi missiles and drones targeted the port area. Why It Matters The stakes extend well beyond the strait itself. Roughly a fifth of global oil consumption passes through Hormuz, and the sustained drop in traffic is already rippling through energy markets. For Saudi Arabia, the dual threat of a Red Sea blockade and Hormuz disruption poses an unprecedented challenge to its carefully cultivated image of stability. That pressure is reshaping regional alliances. On Friday, Saudi Arabia signed a joint defence agreement with Turkey and Pakistan, featuring a NATO-style clause treating an attack on one as an attack on all. Turkey's foreign minister said Saturday he expects Egypt to join as well, calling the country a "natural partner on all issues." The timing is notable: a drone struck US assets at an Egyptian Mediterranean port last month, the first such attack on Egyptian territory since the war began. What's Next Oman's foreign ministry indicated Saturday that "ongoing negotiations regarding navigation arrangements in the Strait of Hormuz are proceeding," though it offered no timeline. Araghchi's claim that discussions with Muscat are near completion suggests a possible framework could emerge, but Iran's insistence on linking reopening to US concessions leaves the path forward uncertain. The defence pact's expansion remains an open question, with Turkey publicly courting Egypt. Pakistani officials describe the agreement as "intended to strengthen collective deterrence," while Turkish Foreign Minister Hakan Fidan insists it is not aimed at any specific country. Whether additional Gulf states join — and how Iran responds — will likely determine whether the region moves toward de-escalation or deeper fragmentation.