Iran's Revolutionary Guards said Sunday they will not reopen the Strait of Hormuz until the United States fulfills a list of conditions, including compensation for war damage and the lifting of sanctions. The blockade, which has reduced vessel traffic and driven up oil prices, has drawn criticism from regional allies and market participants.

President Donald Trump described his approach to Tehran as low‑key, saying he is waiting for Iran's economic pressures to mount. He characterized the situation as a chess game, suggesting he believes economic leverage can bring Tehran to negotiate.

Tehran's Supreme National Security Council outlined on Saturday a set of requirements for reopening the strait. The list calls for an end to hostilities on all fronts, the removal of a U.S. counterblockade of Iranian ports, the lifting of sanctions, the release of frozen assets, and compensation for wartime damage. A provision in a June memorandum also called for a $300 billion reconstruction fund.

Iran's military said the strait has become a theatre of war, not merely a waterway, and that its blockade will continue until the United States accepts all its conditions.

Traffic through Hormuz has declined sharply. At least one tanker was struck on Saturday, according to the United Arab Emirates. Oman's foreign ministry condemned the attacks without naming Iran and said negotiations on navigation arrangements are nearing final stages.

Iran's Houthi allies in Yemen have opened a parallel blockade of Saudi Red Sea ports. Houthi forces announced they struck a Saudi oil facility on Sunday after a fire was extinguished at the site. Saudi Arabia reported three civilian deaths and eight military injuries from the attacks.

The broader regional conflict has challenged Saudi Arabia's reputation for stability and its plans to diversify its economy. On Friday, Saudi Arabia signed a joint defence agreement with Turkey and Pakistan, invoking a clause that treats an attack on one member as an attack on all. Turkey's foreign minister said Egypt may join the pact, describing the partners as natural allies.

The situation remains unresolved, with both sides maintaining their positions and diplomatic channels continuing.