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 deal. The agreement is seen as key to reopening the Strait and resuming energy flows that have been restricted since attacks on Iran by the US and Israel in February.

The semi-official Fars news agency reported that the deal is now under review in Iran’s parliament. Additional details include a proposed ban on cargo related to Israel and a fee structure covering services such as insurance and environmental costs.

Thomas Warrick, a former US State Department official and current 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 on Thursday that Iranian naval forces struck “hostile targets” at the entrance to the Strait of Hormuz, citing an unnamed source without further details. Following these developments, oil prices rose while stock markets declined.

Sources