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Iranian officials proposed conditions for opening the Strait of Hormuz: first, use past shipping taxes to compensate Iran for war losses.

According to a report by CCTV News on April 5th, Mehdi Tabatabaei, the Deputy Director of the Iranian Presidential Palace responsible for Information and Communications, made a strong statement on the regional situation and the issue of passage through the Strait of Hormuz. Tabatabaei launched a fierce attack on US President Trump and his policies on social media, accusing him of resorting to verbal abuse out of "despair and anger," and claiming that his reckless actions had triggered a full-scale war in the region. Regarding the control of the Strait of Hormuz, Tabatabaei stated that the strait would only be fully reopened after a new legal system was established and all losses suffered by Iran in past wars were compensated using past shipping tax revenue. Furthermore, according to CNN, details of a "possible plan" for the resumption of passage through the Strait of Hormuz between Oman and Iran are emerging. An Omani source stated that negotiations have been ongoing for about two weeks, focusing on developing a "safe passage agreement" to restore commercial shipping. This plan would require oil and gas tankers passing through Hormuz to register with Iran and agree to fly the flag of a non-hostile country. This effectively means recognizing Iran's jurisdiction over this strategic waterway. These proposals are seen as one of Oman's last-ditch efforts to avoid further escalation of the war. Oman has previously played a mediating role between Washington and Tehran. However, the source noted that pushing for an agreement under wartime conditions would be "extremely difficult," adding that the best solution remains an immediate ceasefire. According to PolyBeats, the probability of "the Strait of Hormuz reopening to navigation this month" is currently as low as 12% on the prediction market Polymarket.
Disclaimer: The views above are the author's only and do not represent 711BTC. Nothing here constitutes investment advice.

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