The Islamic Revolutionary Guard Corps has drawn a firm line over the Strait of Hormuz, tying any reopening of the vital waterway to specific American concessions. Tehran's conditions include lifting the US naval blockade and providing compensation for war-related damage, according to live war updates. Main Developments Washington's position appears more conciliatory, with Vice President JD Vance reporting that Iranian leaders have communicated they have no intention to impose tolls on the Strait of Hormuz. The US is now pressing for a formal commitment from Tehran to halt attacks on commercial and military ships traversing the critical shipping lane. Negotiations hinge on a potential exchange: Iran's promise to end maritime attacks in exchange for the lifting of the blockade. The IRGC's demand for war compensation adds a financial dimension to the diplomatic standoff, complicating what might otherwise be a straightforward security arrangement. Read also: 3 key details in Turkiye's Mecca defence pact with Saudi, Pakistan Background The Strait of Hormuz has long been a flashpoint in US-Iran tensions, carrying roughly a fifth of global oil supplies. The current crisis follows an extended period of hostilities between Iran, the US, and Israel, with the Pentagon reportedly accelerating its shift toward lower-cost weapons systems as the conflict reshapes military priorities. Why It Matters Reopening the strait without conditions could be seen as a strategic victory for Washington, but Tehran's insistence on compensation signals that it views the blockade as an act of aggression requiring restitution. For global markets, the outcome determines whether oil shipments resume unimpeded or remain vulnerable to disruption, affecting energy prices worldwide. What's Next Diplomatic channels remain open as both sides weigh the terms of a potential deal. Whether the US accepts the compensation demand or counters with a narrower security-only agreement will likely determine how quickly the strait returns to normal operations.