Iran plans to bar US and Israeli ships from passing through the Strait of Hormuz and will require hostile countries to pay compensation before allowing their vessels access, according to local media reports on a proposed Iran-Oman deal to manage the vital waterway.

The agreement, currently under review in Iran’s parliament, is seen as key to reopening the Strait and resuming energy flows that have been limited since US and Israeli attacks on Iran in February, 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 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 Iranian naval forces struck “hostile targets” at the entrance to the Strait of Hormuz on Thursday, citing an unnamed source without further details.

Following these developments, oil prices rose while stock markets declined on Thursday.

Sources