Live Updates: Iran and Oman edge toward temporary Strait of Hormuz reopening plan, but Tehran insists U.S. lift blockade

Long lines formed at gas stations in Tehran Tuesday after the United States announced fresh sanctions aimed at pressuring Iran into submission.

Washington has turned to pulling economic levers six months into a war on Iran that has ground to a stalemate militarily, with peace talks stalled and most traffic through the crucial Strait of Hormuz blocked.

Treasury Secretary Scott Bessent on Monday laid out plans for the "economic asphyxiation" of Iran, saying the "objective is to sever every economic lifeline that sustains this tyrannical regime."

Though Iran's leaders have shrugged off the tough talk, having already endured sanctions for decades, some residents of the capital feared that they would feel the pinch.

"Naturally, sanctions affect people's lives," realtor Mehdi Yazdian, 55, who urged the authorities to control prices, told the AFP news agency. "People are being hurt, both those who are financially well-off and those who are financially weak."

"Yes, these sanctions are having an effect," he said. "But naturally, our people are resilient. These sanctions have been in place for 47 years."

"I personally am not afraid of war at all because this is our land," English teacher Kia Farahani, 45, said. "But I think that this war will be more economic and will cause people to feel a lot of pressure, and now maybe there will be protests again."

Iran's national police chief said Monday that the U.S. was "seeking to create unrest in a part of the country or throughout the country," by imposing the additional economic pain.

CBS/AFP

Oman's foreign minister said Tuesday he was "hopeful" a temporary route through the Strait of Hormuz would be announced "soon," after meeting with Iran.

In a joint statement, Iran and Oman said they had discussed a proposal for a temporary reopening of the Strait of Hormuz which includes a specific route and a plan to clear mines.

The two countries have held regular meetings on the future management of the Strait of Hormuz as laid out in the memorandum of understanding signed in June.

"I am hopeful we will soon announce a temporary corridor for the Strait of Hormuz and practical arrangements to restore safe navigation," Oman's Foreign Minister Bdr Albusaidi said in a social media post. "Future management of the Strait and a permanent solution will follow in due course," he added.

However, Iranian Deputy Foreign Minister Kazem Gharibabadi warned on Wednesday the United States would have to lift its blockade on the narrow waterway.

"Before any action is taken to reopen the Strait of Hormuz, the United States must fully implement all of the commitments it has violated," he said.

President Trump said Tuesday that the U.S. was implementing a "Zero Tolerance" policy on any Iranian ships placing mines in the Strait of Hormuz, saying they would be "immediately and systematically destroyed."

In a post on his Truth Social platform, Mr. Trump reiterated his claim that all mines have been removed or destroyed from the vital waterway, adding, "Iran has been notified that any ship or boat placing new mines will be immediately and systematically destroyed." 

He said the U.S. Space Force was "watching every square inch of the Strait" and that there is "a Zero Tolerance policy on mine placement in full force and effect."

Quoting anonymous Iranian sources, the Financial Times reported last week that Iran would fire missiles at U.S. targets in Europe if Mr. Trump stepped up military pressure over the Strait of Hormuz.

China's government on Tuesday dismissed any looming efforts by the U.S. to impose punishment for doing business with Iran as likely illegal, and warned Washington against taking such measures.

U.S. Treasury Secretary Bessent, in announcing new sanctions targeting Iran on Monday, said President Trump was making phone calls to world leaders warning them to cease interactions with the Iranian regime. He declined to name any of those leaders when asked by CBS News, and he didn't get into a timeline or other specifics.

Asked whether Chinese banks that finance Iranian oil imports would be among those hit with the punishing financial measures, Bessent said, "no one is above the reach of U.S. sanctions." 

Speaking to reporters in Beijing, Foreign Ministry spokesperson Lin Jian said Tuesday that China has "repeatedly stated its firm opposition to illegal unilateral sanctions without the basis of international law and without authorization from the UN Security Council," according to China's state-run Xinhua news agency.

"Economic warfare and extreme pressure do not help solve problems; they only further intensify conflicts, cause risks to spill over, disrupt the global economic and financial order, and harm the legitimate rights and interests of other countries," Lin said, adding that China's cooperation with Iran has "always been conducted within the framework of international law and should not be disrupted or undermined."

China "will take all necessary measures to firmly safeguard its own rights and interests," he added.