Iran demands new U.S. concessions to reopen Strait of Hormuz

WASHINGTON —

Iran has issued a new list of demands for reopening the Strait of Hormuz, raising the stakes in negotiations with the United States just days after progress seemed possible.

Tehran stated the strait would remain closed until the U.S. “corrects its behavior.” Iran’s demands include permanently ending the war, lifting sanctions, ending the naval blockade, withdrawing American forces from the region, releasing frozen Iranian assets, and fully compensating Iran for war damages.

At the same time, the Pentagon is pushing defense companies to speed up weapons production as some U.S. stockpiles dwindle. In a memo to defense companies, Deputy Defense Secretary Kathleen Hicks said, “We must dramatically accelerate our program schedules and expand our production capacity now.”

The Pentagon emphasized that this effort is part of a broader modernization initiative that predates the Iran war. President Donald Trump addressed the issue on Friday, saying, “We have certain types of munitions that are very powerful, that we have unlimited, virtually unlimited supply. We have others where it’s a little bit tighter. We’re in great shape, but with that being said, we always want more. We have to have more. We have other things maybe come up, and maybe don’t come up. Hopefully nothing else does come up.”

Rebuilding stockpiles will require congressional funding, but the president’s proposed $1.5 trillion defense budget is stalled as lawmakers are out for the August recess.

The Center for Strategic and International Studies estimates that U.S. stockpiles of Patriot interceptors have dropped by at least 65%, from 2,330 to fewer than 830. THAAD interceptors are down by at least 38%. While CSIS does not believe the U.S. is at risk of running out of weapons to fight Iran, concerns remain about readiness for another potential conflict, particularly with China, as replacing Patriot and THAAD missiles can take years.

Rebuilding those stockpiles will require additional funding from Congress. President Trump’s proposed $1.5 trillion defense budget for 2027 would increase military spending by roughly 44%, with about $1.1 trillion moving through the regular appropriations process and another $350 billion envisioned through budget reconciliation.

But the broader defense package faces obstacles on Capitol Hill. Senate Democrats blocked a $1.15 trillion defense authorization bill in July, citing objections to the Iran war and the size of the spending increase. The Senate has now left Washington for its August recess.