Iran plans to bar US and Israeli ships from passing through the Strait of Hormuz and require compensation from countries it considers hostile before allowing their vessels to use the crucial waterway. This proposal is part of a deal with Oman aimed at managing the strait, according to local media reports.

The agreement is seen as pivotal for the potential reopening of the Strait of Hormuz and the resumption of energy flows, which have been disrupted since US and Israeli attacks on Iran in February. The text of the deal is currently under review in Iran's parliament, the semi-official Fars news agency reported.

Additional details from Fars 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 that on Thursday, 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