Proposed deal to end US-Iran war could give control of inbound traffic in Hormuz to Tehran

US-Iran war: A proposed deal between Iran and Oman to help end five months of war between Iran and the United States could give Tehran control over ships entering the Gulf through the Strait of Hormuz, according to a report. If agreed, this would be a major change from the pre-war arrangement, when the strait was open to all ships without fees.

According to a report in Reuters that cited a senior Iranian source and two regional officials, the US is yet to comment on the proposal. While President Donald Trump has said a deal to reopen the strait is imminent, US officials have stated they would not agree to Iran controlling access to the route, which is vital for global energy trade. Important issues remain unresolved, the sources added.

MUST READ | 'We may have a deal today or tomorrow': US Treasury chief on breakthrough with Iran on Hormuz

On the proposed Iran-Oman arrangement, sources told Reuters that significant details still had to be settled and pushed back against Trump's suggestion that a deal reopening the strait was close. One regional source said the concession had already been made regarding some form of control over Hormuz. Another said the meaning of "control" was still being discussed, with Gulf negotiators insisting that regional countries supervise inspections of ships and that any payment of fees remain voluntary.

According to a senior Iranian official, Iran is seeking fees of between 5% and 7% of the value of cargoes carried by ships using the strait. Oman is discussing fees of around 3%, while Washington wants no fees at all. The draft agreement envisages Iran having control over ships heading into the Gulf through the strait, with one main sticking point being Iran's role over ships travelling in the opposite direction.

Iran and Oman have been holding bilateral talks on the strait, which they control through its northern and southern channels. Iran said there had been significant progress, with both inbound and outbound journeys passing through Iranian waters. Iran's Foreign Ministry spokesperson Esmaeil Baghaei said Iran and Oman had reached an understanding on the geographic coordinates for a shipping route through the Strait of Hormuz, and a joint announcement was being finalised, provided no interference from third parties.

DON'T MISS | India’s LNG imports rise as it diversifies supplies away from Hormuz: Report

Baghaei described the negotiations as "professional" and said the two sides had reached a mutual understanding on the geographical parameters of the route. He added that any agreement between Iran and Oman would not by itself guarantee security in the strategic waterway.

Iran has warned Gulf states that any new US attack on its territory would trigger retaliation against critical energy infrastructure across the region. One Gulf source said Iran's warning was clear: if America targeted Iran's infrastructure, it would respond by striking Gulf energy facilities and other regional targets. Iran has been attacking Washington's allies in the region with missiles and drones, and targeting commercial ships transiting the strait without its permission.

Speaking at a rally in Las Vegas, Trump said he preferred diplomacy. "I'd rather make a deal because I don't want to kill people. I do not want to kill people, but at some point we're gonna," he said. Iran has reported more than 3,400 deaths since the war began on February 28, while the United States has reported 18 military personnel dead.

MUST READ | Commerce through international waterways must be restored: India condemns attacks on vessels in Hormuz at UNSC

Trump, who earlier said the war would end in Iran's "unconditional surrender," is under pressure to find a way out of the conflict ahead of the November midterm elections. Months of US military operations have not broken Iran's grip on the strait. US commanders advised Trump in July that they were running low on some munitions, and Reuters reported that the US Army had nearly exhausted its long-range precision missiles.