Iran will seek to bar US and Israeli ships from entering the Strait of Hormuz and require compensation from hostile countries before they’re allowed to sail through it, according to media reports on a proposed Iran-Oman deal to manage the waterway.The agreement has become key to expectations for a reopening of Hormuz and a resumption of energy flows that have been throttled since the US and Israel attacked Iran in Feb. “That’s clearly not going to go down well in Washington,” said Thomas Warrick, a former state department official who is now a non-resident senior fellow at the Atlantic Council. “Instead of both sides making concessions, both sides are increasing demands.”But asked during a White House event on Thursday evening about the negotiations, President Trump responded: “Moving along good.”There aren’t many US- or Israeli-flagged commercial ships globally, and few have sailed in and out of the Persian Gulf since the war started. It remains to be seen how broadly Iran might interpret such a ban, as the complex nature of vessel ownership and management means some shipping companies with US or Israeli ownership or investment could be viewed as having links to those countries.In any event, Trump would be unlikely to agree to such a concession after months of insisting that American armed forces had essentially defeated Iran. Midterm elections that will determine control of both houses of Congress are just months away, and polls have found that the war has become deeply unpopular.The text of the agreement is now under review in Iran’s parliament, the semi-official Fars news agency said. Fars reported other details including a proposed ban on cargo related to Israel, and a fee structure covering services like insurance and environmental costs.Separately, Fars said Iranian naval forces had struck “hostile targets” at the entrance to the Strait of Hormuz, citing an unnamed source and without giving additional details. Both US and Iranian officials have been signalling in recent days that some kind of accord on Hormuz is close. Trump said earlier Thursday that the US was involved in negotiations, but declined to say whether an agreement had been reached. “We control it, but they can always shoot something,” Trump said of the vital waterway earlier Thursday.The US has insisted on free transit through Hormuz, and broadly called for a return to the pre-war status quo.Tehran says a full reopening would require the lifting of the American maritime blockade. And the US hasn’t indicated whether it’s ready to go back to the terms it accepted under the last effort to reopen the strait, a June agreement that broke down within weeks. Those included waiving oil sanctions on Iran.Fars, citing an informed source at Iran’s foreign ministry, said the draft agreement with Oman foresees Iranian management over the entry of vessels into Hormuz, with the exit being overseen jointly by both countries.
