Iran Proposes Banning US and Israeli Ships from Strait of Hormuz Until Compensation Paid

Iran has proposed barring American and Israeli vessels from passing through the Strait of Hormuz as part of draft terms for managing maritime transit, according to the Iranian news agency Fars. The restrictions would apply to countries and private entities that have caused damage to Iran and would remain until compensation is paid. The United States quickly rejected these conditions. Earlier this week, US President Donald Trump and Treasury Secretary Steven Mnuchin expressed optimism about reaching an agreement on Hormuz within days, emphasizing that temporary transit routes would be unrestricted without permits or fees, and underscoring that Hormuz is an international passageway with no single controlling party.

Iran plans to impose fines of up to 20% of the cargo value on ships violating the agreement's terms, which is still under review and not yet officially approved. Separately, Iran and Oman are reportedly close to finalizing an agreement to open the Strait of Hormuz. Iranian Deputy Foreign Minister Qassem Qaraibabadi confirmed the nearing deal, noting Iran's demand to change shipping routes due to current severe conditions threatening its national security. An Iranian government official stated that passage through the strait would not include fees or charges, aiming to revive talks and return to a memorandum of understanding agreed upon by both countries in June.

Under that memorandum, Iran would allow commercial ships to pass through Hormuz without fees for 60 days, while the US would commit to lifting its naval blockade on Iran. The Iranian Foreign Ministry spokesman said the agreement is close, provided external parties do not disrupt the process.