Iran's Hormuz Strait plan reportedly blocks U.S., Israeli ships; U.S. rejects any 'impediments'

U.S. and Israeli ships would be blocked from passage through the Strait of Hormuz under the terms of a draft plan on how to manage the economically vital waterway, Iranian state news outlet Fars reported Thursday.

The U.S. appeared to quickly reject the terms under consideration, which emerged after President Donald Trump and Treasury Secretary Scott Bessent had said a deal between the U.S. and Iran could come by Wednesday or Thursday.

"Any temporary routes will be without any impediments — meaning no approvals or permissions and no tolls or charges," a U.S. official told CNBC when asked about the Fars report. "The Strait of Hormuz is an international waterway and no party controls the lanes or the ability to transit through them," the official added.

The plan, according to Fars citing a member of Iran's parliament, would also bar Israeli cargo and related vessels. The restrictions will extend to "countries and individuals that have caused damage to Iran" until that harm is "compensated," according to the report.

Iran plans to issue penalties of up to 20% of the value of the cargo of those who violate the terms of the agreement, which is currently under review, per Fars.

Earlier, regional officials said Iran and Oman are close to finalizing a deal on shipping through the strait, as both Iran and the U.S. signaled a deal would be announced soon.

Shipping through the strait will face "no fees or tolls" under a temporary deal agreed between Iran and Oman, an Iranian government official linked with the agreement told MS NOW.

The official added that the deal includes all inbound traffic via Iranian territorial waters as well as outbound traffic through a route closer to Oman.

The official, who asked not to be named due to the sensitive nature of the matter, said the deal was intended to allow talks to return to the ceasefire and memorandum of understanding agreed between the U.S. and Iran in mid-June, kick-starting another 60-day cycle of negotiations.

The official also told MS NOW that the United Nations' International Maritime Organization and the U.S. will be involved in the announcement.

A separate Gulf government official told MS NOW the deal has been endorsed by the members of the Gulf Cooperation Council.

Speaking to state broadcaster IRNA, Iranian Deputy Foreign Minister Kazem Gharibabadi said the U.S. was ready to "return to commitments," late Wednesday, while denying that U.S. negotiations were ongoing with Tehran.

He did not elaborate on the commitments, but was likely referring to the interim understanding reached in June.

Under the memorandum of understanding signed June 17 between the U.S. and Iran, Tehran was supposed to allow commercial vessels to transit the Strait of Hormuz with no charge for 60 days. In return, Washington had committed to lifting its naval blockade of Iranian ships, among other things.

Trump had accused the Islamic Republic's leaders on Monday of being "duplicitous" about peace talks, saying they were underway "whether Iran wants to admit it or not."

Gharibabadi said that the "path of understanding is between Iran and Oman, and no negotiations with the US have taken place during this period."

In a statement Thursday, Gharibabadi said an Iran-Oman "understanding" on the Hormuz Strait was close to being finalized.

Iran had demanded the shipping routes in the strait should be changed, he said, adding that the "old routes no longer meet the current difficult conditions that have jeopardized the national security of the Islamic Republic of Iran."

Iran's Foreign Ministry spokesperson, Esmail Baghaei, had earlier signaled the deal was close, provided that "some third parties do not obstruct work in this regard."

Axios reported late Tuesday that the U.S., Iran and Oman were closing in on an interim agreement to reopen the Strait of Hormuz, with Washington aiming for a Wednesday announcement.

Bessent also told CNBC that a deal to unlock the waterway could be reached by Wednesday.

U.S. Central Command insisted in an X post Tuesday that the "southern route through the Strait of Hormuz remains free and open for all commercial vessels seeking to transit the international waterway." The southern route passes through Omani territorial waters, rather than the part closer to Iran.

Separately, the U.K. Maritime Trade Operations Centre said Thursday it had received reports of explosions near tankers off Yemen and Oman on Wednesday.

Correction: The U.K. Maritime Trade Operations Centre said Thursday it had received reports of explosions near tankers off Yemen and Oman on Wednesday. An earlier version misstated the name of the organization.