Iran rules out Omani proposal to manage Strait of Hormuz

Highlights:

• US-Saudi say strikes hit Iran-backed targets in eastern Iraq
• Iran warns of 'major miscalculation'
• Tehran rejects Oman proposal for regional management of Hormuz
• Iran says it targeted three ships in strait

Tehran has ruled out Oman's proposal for regional joint management of the Strait of Hormuz, a senior Iranian official told Reuters on Wednesday, scuppering hopes for a resolution to the impasse that has choked off Gulf trade for months.

Oman proposed a new regional deal aimed at resolving the conflict over the critical strait, through which about a fifth of global oil and liquefied natural gas flowed before the US and Israel attacked Iran on 28 February.

However, Tehran ruled out Oman's proposal for regional joint management of the strait, saying it had no chance of success.

The US and Saudi Arabia are trying to pressure Oman to advance their "unrealistic plans" regarding the strategic strait, the official told Reuters. Iran insisted the entire inbound route through the strait and part of the outbound route must be under Iranian control, the official added.

A 50-50 joint control arrangement with Oman would not serve Iran's interests, though Tehran considers Oman a valuable neighbour, the official said.

Iran's Revolutionary Guards (IRGC) said on Wednesday its forces struck three oil tankers in the strait and forced them to stop after they ignored warnings for taking an "unsafe and illegal route".

The IRGC Navy said in a statement that it continued to maintain full control over the strategic waterway and warned that "unlawful US military interference" and instructions to vessels in the region would not go unanswered.

Reuters could not immediately verify the Guards' account.

Oil prices surge again

Oil prices rose more than $3 a barrel on Wednesday as attacks intensified once again.

The US and Saudi Arabia launched strikes on Iran-backed groups in Iraq on Wednesday, saying they were responsible for drone attacks on Saudi oil facilities, prompting Iran to warn that blaming it for such attacks was a "major miscalculation".

The US-Saudi strikes in eastern Iraq occurred just hours after the US military said its air defences had averted a surprise Iranian attack on US troops in the region. The IRGC said on Wednesday it had fired several ballistic missiles at US military installations in Jordan.

Jordan's military said its air defences intercepted and shot down five Iranian missiles targeting the kingdom on Wednesday.

Back-and-forth attacks in recent days have ended a brief pause in the fighting, after US President Donald Trump abruptly called off a two-week US bombing campaign and Iran appeared to follow suit.

Saudi Arabia said on Tuesday that its air defences destroyed several drones targeting oil facilities in the kingdom's Eastern Province. Iran-backed militias launched the attacks from Iraqi territory, Saudi Defence Ministry spokesperson Turki al-Maliki said.

Later in the day, US Central Command and Saudi Arabia's Defence Ministry said the two countries hit multiple sites across eastern Iraq that they said had been used by Iran to direct drone attacks.

Iraq's Popular Mobilisation Forces said a number of its official headquarters in different parts of Iraq were attacked on Wednesday by what it described as US and Saudi forces. The PMF said preliminary reports indicated several people were killed and others wounded, with damage to a number of its buildings and facilities.

Speaking to state TV in Iran, an Iranian defence official strongly denied any connection between projectiles fired from other countries towards Saudi targets.

The unnamed military official, quoted by state broadcaster IRIB, said attributing attacks on US interests in the region to Iran was a "major miscalculation".

Oman proposes joint management of Hormuz

In an effort to resolve the conflict over the Strait of Hormuz, Oman had presented Iran with a plan backed by Gulf states to manage the waterway that would include collecting voluntary fees from ships, a Gulf source and a Western diplomat told Reuters on Tuesday.

Under the Omani proposal, Iran would not exercise sole control and fees would be voluntary, the Gulf source and the Western diplomat briefed on the matter told Reuters.

The system would be analogous to one in place on Asia's Strait of Malacca, where Indonesia, Malaysia and Singapore ask ships to pay voluntary contributions to fund navigation, environmental protection and search-and-rescue operations.

Iran effectively shut the strait after the US and Israel attacked Iran on 28 February. A deal last month between the US and Iran partially reopened the strait, with future talks planned to resolve larger issues including Iran's nuclear programme. But the agreement collapsed in early July after Iran fired on vessels using a shipping channel it does not recognise.