Iran set preconditions on Saturday for a reopening of the Strait of Hormuz, including compensation for war damages, complicating a potential deal to open the waterway essential to the world economy.

Tehran has imposed an effective blockade of the strait since the United States and Israel struck Iran in late February, and wants to charge tolls for passage, attacking ships it accuses of attempting to circumvent its preferred route.

Continued attacks in the strait, which was free to transit before the war, led to the collapse of an April ceasefire. Mediators have since urged both sides to return to the terms of a June memorandum.

Iranian Foreign Minister Abbas Araghchi said discussions with Oman over transit and management of the strait were “approaching the final stages”, but added the reopening of Hormuz “is subject to other conditions and compensation for the violation” of the June agreement.

-AFP