Iran is seeking to bar US and Israeli ships from passing through the Strait of Hormuz and plans to require compensation from hostile countries before allowing their vessels to use the crucial waterway, according to local media reports on a proposed Iran-Oman agreement. This deal is seen as central to reopening the Strait and resuming energy flows that have been restricted since attacks on Iran by the US and Israel in February.

The proposed agreement, currently under review in Iran’s parliament, includes a ban on cargo related to Israel and a fee structure covering services such as insurance and environmental costs, the semi-official Fars news agency reported.

Thomas Warrick, a former US State Department official and now a senior fellow at the Atlantic Council, commented, “That’s clearly not going to go down well in Washington. Instead of both sides making concessions, both sides are increasing demands.”

Separately, Fars reported that on Thursday, Iranian naval forces struck “hostile targets” at the entrance to the Strait of Hormuz, citing an unnamed source without providing further details. These developments contributed to a rise in oil prices and a decline in stocks on the same day.

Sources