US-Iran war LIVE: Iran proposes joint Strait of Hormuz control plan with Oman

“When I say excellent, I don’t mean it in a superficial way,” Netanyahu said in Hebrew after meeting Trump in the White House.

“A conversation with full partnership, with mutual support, with an understanding of the common goal of ensuring that Iran does not have nuclear weapons, and other goals as well. One of the best conversations I’ve had with the President of the United States, our friend Donald Trump.”

Iran threatens Strait of Hormuz blockade: Tehran warned it could stop commercial vessels linked to countries or companies that use Iranian frozen assets to pay compensation for war-related damages.

Iran accused the US of planning to use its blocked assets to compensate for damage to ships during the recent West Asia conflict.

Iran’s Khatam al-Anbiya Central Headquarters said vessels belonging to entities supporting the plan would be denied passage through the Strait of Hormuz.

US President Donald Trump earlier said future damages to ships, cargo and maritime assets would be paid using Iranian money held and controlled by Washington.

Iran’s Deputy Foreign Minister Saeed Gharibabadi said Tehran proposed to Oman that the two countries jointly oversee shipping transit through the strategic waterway.

Under Iran’s proposal, Tehran would manage one direction of shipping traffic through the Strait of Hormuz, while Oman would oversee transit in the opposite direction.

The proposal is intended to create a framework for managing vessel movement through the crucial energy route amid ongoing regional tensions.

Speaking to Channel 14, Israel Defence Minister Katz said Iran was deliberately avoiding attacks on Israel despite targeting other locations in the region.

"The fact is that, at the moment -- and this could change within an hour -- the Iranians are firing at everything in the region except one country: the State of Israel," Katz said.

He added that Tehran was aware that American military aircraft had been operating from Israeli territory.

"They know that American aircraft are taking off from here to carry out strikes," Katz said.

The defence minister did not provide further details about the operations or specify which Israeli bases were used.

Katz reiterated that Israel remained prepared to respond militarily if Iran targeted the country.

"This does not mean we know what will happen tomorrow; it means we know what our response will be," he said.

"I announced it, the Prime Minister announced it, and we made it absolutely clear: if Israel comes under fire, we will strike back with full force."

Israeli Defence Minister Israel Katz said that US warplanes launched strikes on Iran from Israeli bases during the recent military campaign.

Markets reacted positively to Trump's decision to halt airstrikes and the prospect of renewed diplomacy.

Brent crude prices, which had already fallen about 8% on Monday, extended losses on Tuesday, dropping more than 2.5% to around $86 per barrel as traders anticipated reduced risks to global energy supplies if shipping through the Strait of Hormuz returns to normal.

The Strait of Hormuz is one of the world's most strategically important maritime routes, handling roughly one-fifth of global oil and liquefied natural gas (LNG) shipments before the conflict escalated.

Iran effectively closed the waterway to most foreign vessels after US and Israeli attacks on February 28. Although Washington and Tehran reached an agreement last month that partially reopened shipping, the arrangement collapsed in early July after Iran targeted vessels using shipping lanes it did not approve.

The United States insists commercial vessels should enjoy unrestricted passage through the strait without paying fees, arguing that mandatory transit charges would violate international law.

US President Donald Trump reiterated his threat to strike Pickaxe Mountain, as well as bridges and other civilian targets, if Iran fails to reach a deal with Washington.

Trump said there have been "good talks" with Iran despite ongoing tensions. (Fox News)

Oman has proposed a Gulf-backed plan for jointly managing the Strait of Hormuz, including a system of voluntary fees for ships using the strategic waterway.

The proposal aims to restore normal trade and shipping through the strait after months of disruption caused by the US-Israeli war with Iran.

Under the plan, Iran would not have sole control of the Strait of Hormuz and would manage it alongside Oman.

The proposed fee system is voluntary, similar to the model used in the Strait of Malacca, where ships can contribute toward navigation and safety services.

Iran has not formally responded to the proposal, though Omani officials held talks with Iranian leaders in Tehran over the weekend. (Reuters)

Three protesters sentenced to death over demonstrations in Iran's Isfahan are facing imminent execution, according to Iran International. The judiciary has reportedly summoned the families of Ghaem Hosseini, Amirhossein Maleki and Ali Dashti for final prison visits. The three are among 12 men sentenced to death in the Alikhani Square case linked to deadly clashes in January 2023 that left four security personnel dead.

Iran executed two protesters early Tuesday in the city of Isfahan amid heavy security around Alikhani Square, where witnesses reported overnight clashes between security forces and people gathered over fears of further executions. The judiciary's Mizan news agency identified the men as Amirhossein Safari and Abolfazl Sepahi, confirming the sentences were carried out early Tuesday.

The Kremlin on Tuesday said Ukraine's strike on an Iranian vessel in the Caspian Sea amounted to an attack on Iran. Kremlin spokesman Dmitry Peskov also accused Kyiv of sabotaging the Nord Stream gas pipelines and targeting infrastructure linked to the Caspian Pipeline Consortium, adding that the "threat must be neutralised and definitively destroyed."

Iran lost 230 million cubic metres of natural gas production capacity during its war with the United States, government spokesperson Fatemeh Mohajerani said on Tuesday. Speaking at a televised press conference, Mohajerani said the country's gas output was significantly affected by strikes carried out during the conflict.

Oil prices extended losses on Tuesday, hitting their lowest levels in more than a week as hopes for a resolution to the US-Iran conflict grew and traders continued to assess developments in the Middle East.

Oman has presented a proposal to Iran for a joint regional mechanism to manage the Strait of Hormuz with voluntary fees, Reuters reported on Tuesday, citing a Gulf source.

Ukrainian Foreign Minister Andrii Sybiha has rejected Iran's allegations over a strike on an Iranian commercial vessel, calling Tehran's threats "unjustified and groundless" and accusing it of being a direct accomplice to Russia's war against Ukraine.

Iran's foreign minister discussed issues related to the security of the Strait of Hormuz in separate phone calls with his Saudi and Omani counterparts on Monday evening, according to a statement published on his Telegram channel on Tuesday.

Israeli Prime Minister Benjamin Netanyahu's meeting with President Donald Trump on Tuesday is the first since the two leaders launched a joint war against Iran and a chance for Netanyahu to smooth out strains in their relationship.

Indian benchmark indices opened on a subdued note on Tuesday before recovering in early trade, supported by easing crude oil prices. However, weak cues from most Asian markets kept investor sentiment cautious.

The BSE Sensex opened 34.69 points lower at 76,801.09, while the NSE Nifty 50 slipped 3.55 points to 23,992.40 before both benchmark indices edged into positive territory in early trade.