Larry Johnson: Iran Holds Firm on the Strait of Hormuz

by Larry Johnson [8-9-2026] Larry C. Johnson(bio).

Although Donald Trump insists that the Strait of Hormuz is open, it ain’t. There are no direct talks between Iran and US representatives. In fact, it looks like Pakistan’s attempt at mediation is going nowhere. Iran has been talking with Oman, but those talks — despite claims of progress — appear to have stalled.

Iran updated its demands that the US must accept if it wants the Strait of Hormuz back in full operation:

‘Until America corrects its behavior, the Strait of Hormuz will not be opened.

Correcting behavior means:

1. Never threaten Iran with any language nor insult the sanctities of this nation.
2. End the war and aggression against Iran and its allies in Lebanon, Palestine, Yemen, and Iraq permanently.
3. Lift the naval blockade and withdraw U.S. naval and air forces from the area surrounding Iran.
4. Pay the damages for the two aggressive wars imposed against Iran.
5. Lift the cruel and illegal sanctions against the Iranian nation.
6. Release the frozen and stolen assets of the Iranian people unconditionally.

These are the demands of the Iranian people who have been relentlessly present in the squares and streets for 160 days.

Some in the West are treating these demands like they are something new. They are not. Let me remind you that in early April 2026 (around April 6), Iran delivered a 10-point proposal (sometimes called a peace plan or counter-proposal) to the United States. It was conveyed via Pakistan, which was mediating. This responded to an earlier U.S. 15-point proposal. Iranian state media and subsequent reporting summarized the key elements; no complete official English text of every point was universally published at the time, but consistent accounts of the main demands included the following:

• A permanent/non-aggression guarantee that Iran (and related fronts) would not be attacked again.
• Continued Iranian coordination/control or a secure transit protocol for the Strait of Hormuz (with some versions mentioning fees or arrangements involving Oman).
• Ending hostilities against Iran’s regional allies/“Axis of Resistance” (including in Lebanon).
• Full or broad U.S./Western sanctions relief (primary and secondary).
• Termination of relevant UN Security Council and IAEA resolutions.
• Release of frozen Iranian assets.
• Compensation or reconstruction funding for war damage.
• Related security and non-interference provisions.

Iran is holding firm to its demands. I remain skeptical that Donald Trump will agree to these terms. In fact, Trump reportedly has decided to launch a new campaign of bombing and missile strikes, despite warnings from the Chairman of the Joint Chiefs of Staff that US missile inventories are running dangerously low. Folks at CENTCOM who thought they would have a long weekend reportedly have been called back to work to finish planning the new round of strikes.

I think that US Treasury Secretary Scott Bessent is a good barometer for what Trump it thinking. On Thursday, August 7 he announced fresh Treasury/OFAC sanctions targeting Iran’s use of digital assets, posting that the regime relies on digital asset exchanges to launder billions of dollars, maintain covert access to international financial systems, and support the Islamic Revolutionary Guard Corps. He said:

With its economy in freefall and inflation in the triple digits, the regime is desperate for cash, Treasury will hunt down and dismantle the illicit financial networks that keep the regime afloat” whether in dollars, rials, or crypto.

He cast this as evidence his “Economic Fury” campaign is working. If this is what Bessent is telling Trump then it is likely that Trump is considering a CENTCOM plan for another intensive bombing campaign, despite that Cooper having reportedly advised the White House and Pentagon in late July to halt the bombing campaign around the Strait of Hormuz. His argument was essentially that the campaign had hit a wall of diminishing returns. He told administration officials that most of the military’s designated targets in the Strait of Hormuz region had already been struck, leaving relatively few remaining objectives. Despite that warning, CNN and the Jerusalem Post reported that CENTCOM has developed a plan for one or two weeks of heavy bombardment intended to destroy Iran’s remaining missile capabilities. This sits alongside CENTCOM’s unusual, crowdsourcing-style email asking troops for “new creative and unconventional ways” to pressure Iran — a sign the command is casting about for options.

Lots of mixed signals. I cannot rule out the possibility of Trump ordering a new surprise attack in hopes that it will force Iran to capitulate. What do you think Trump will do?