Iran ties the reopening of the Strait of Hormuz to a list of demands on the United States

Iran has said it is close to a final agreement with Oman defining new shipping lanes through the Strait of Hormuz, while insisting that the strait itself will not reopen until the United States meets a list of conditions. Iran closed the waterway in response to American and Israeli attacks on Tehran that began in late February. Before the closure it was a major conduit for oil and gas shipping.

Iranian Foreign Minister Abbas Araghchi said the agreement with Oman was in its final stages, but added that this does not mean the strait will reopen. That step, he said, requires conditions conveyed through intermediaries. Iran and the United States are not in direct talks, and Tehran says it will not begin them while Washington is in breach of an interim deal signed in June.

The conditions are extensive. Iran's Supreme National Security Council said the strait would not reopen until the United States corrects its behaviour, demanding that it never threaten Iran again, that the war with Iran and its armed allies end permanently, that the naval blockade of Iranian ports be lifted, and that American forces withdraw from the area. It also wants full compensation for war damage, the lifting of economic sanctions, and the unconditional release of Iran's frozen assets.

The proposed arrangement with Oman is narrower and more practical. According to people familiar with the talks, ships would enter near Iran and exit near Oman, and would transit without paying fees or tolls during an interim period. The arrangement is designed to help restore the separate interim deal between the United States and Iran. It is said to be endorsed by Gulf Cooperation Council members and expected to be announced jointly by Iran, Oman, the United States and the International Maritime Organization, though the terms could still change.

Iran's parliament has approved the general outlines of a plan to manage the strait. A lawmaker said transits by vessels belonging to hostile countries would be prohibited, and that countries which have caused damage to Iran cannot pass until they compensate for it.

United States President Donald Trump responded to Iran's compensation demand with one of his own, writing that he would demand Iran pay compensation for all of the people it has killed and gravely wounded. He has separately said the United States is only semi-negotiating and is letting economic pressure take effect.

The standoff registered in Indian markets. The Sensex dipped 19.38 points to 78,479.79 in early trade and the Nifty slipped 5.10 points to 24,567.45, amid a spike in crude oil prices driven by geopolitical uncertainty. Brent crude traded 1.03 per cent higher at 84.41 dollars a barrel.