Trump Says Hormuz Talks ‘Moving Along’ Even as Iran Mulls US Ban

nunh12644c7xl8it8viz{xa1_media_dl_1.png Joint Maritime Information Cente

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(Bloomberg) — US President Donald Trump said negotiations between Iran and Oman over the Strait of Hormuz are “moving along,” even after some Iranian lawmakers said they would seek to bar American and Israeli ships from the waterway as part of the deal. 

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The lawmaker plan reported by the semi-official Fars news agency on Thursday is part of a draft bill under review by Iran’s parliament, following several days of discussions between Tehran and Muscat. Other details include a demand for compensation from “hostile countries,” a proposed ban on cargo related to Israel, and a fee structure covering services like insurance and environmental costs.

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Both the US and Iran have been signaling in recent days that some kind of deal on the Strait of Hormuz is close, but it’s unclear whether Iran’s Supreme Leader Mojtaba Khamenei has given his assent to the proposal, a condition for it to go ahead. Iranian officials have said that communicating with him takes time.

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A deal on the management of the strait has become key to expectations for a resumption of energy flows, which have been severely curtailed since the US and Israel attacked Iran at the end of February. A reopening of the crucial chokepoint would also likely pave the way for a return to broader negotiations between the US and Iran to end the war. 

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Arab mediators discussing a deal with Iran for the Strait of Hormuz are concerned that the nation’s diplomats may not be able to guarantee compliance with any agreement reached, the Wall Street Journal reported. Mediators cited by the paper say Tehran’s lead negotiators are under growing pressure from hardline officials to eke out more explicit references to Iran’s role in the strait and clearer benefits.

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Fars said late Thursday that Iranian naval forces had struck “hostile targets” at the entrance to the strait, citing an unnamed source, an indication that tensions remain high. 

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Brent crude oil rose about 1% above $83 a barrel, after gaining almost 4% in the previous session.

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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.

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Trump has insisted for months that navigation through Hormuz must be resumed, threatening fresh attacks on Iran if it fails to reopen the waterway. Any temporary routes through the strait won’t be subject to approvals, permissions, tolls or charges, a US official said Thursday in response to reports on the latest proposals.

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Tehran says a full reopening would require the lifting of the American maritime blockade, something the US hasn’t indicated whether it’s ready to do.

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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. They envisage transit through a “central corridor,” with traffic via the two other routes that are currently in limited use to cease within a “specified timeframe,” the agency reported.