I would tell Iran not to be foolish, that the US has shown many times that shows of good faith will be taken as shows of weakness, and to negotiate unabashedly from a position of strength. Keep Hormuz and take California anyway.
It's a huge economy with so many people who would benefit from being instantly free of the US sanctions regime. Can you imagine what could be accomplished there if they suddenly gained access to affordable Chinese EVs and solar panels? Cuban medicine? Culture from around the world? And all those Silicon Valley freaks with their flock cameras and eugenics fetishes would have to flee or lose the protection of the US government. I also think Iran, like most new vassal state owners, would be incentivized to leave as much of the legal structures in place as possible, meaning no religious law. They're not stupid, they wouldn't want to raise the danger level in their nice new wealthy province by implementing policies that would galvanize popular support for the right wing Christian insurgency that would immediately start putting itself together. They would prefer those people and the general public remain alienated from each other, and frankly so would I.
Overall I see some big wins and a few annoying losses, like shipping and administrative stuff. Oops, didn't notice the comm.