US warns shipping firms they could face sanctions over paying Iranian tolls in the Strait of Hormuz

About a fifth of world trade in oil and natural gas usually passes through the strait at the mouth of the Persian Gulf in peacetime.

Iran effectively closed the strait to normal traffic by attacking ships and threatening attacks after the US and Israel started a war on February 28. Later, the country began offering safe passage to some ships by diverting them via alternate routes closer to the coastline, sometimes charging for the service.

That “toll booth” effort is the focus of the U.S. sanctions warning.

The payment demands could include not only cash transfers, but also “digital assets, offsets, informal barter transactions, or other in-kind payments,” including charitable donations and payments to Iranian embassies, OFAC said.

“OFAC is issuing this alert to warn U.S. and non-U.S. persons of the sanctions risks of making these payments to, or seeking guarantees from, the Iranian regime for safe passage. These risks exist regardless of the payment method,” the report said.

The US responded to Iran’s closure of the strait with its own naval blockade on April 13, blocking Iranian tankers from leaving and depriving Iran of oil revenues it needs to support its ailing economy.

U.S. Central Command said 45 commercial ships have been ordered to turn around since the blockade began.

Trump rejects Iranian proposal

The warning came as US President Donald Trump quickly rejected Iran’s latest proposal to end the war between the countries.

“They want to make a deal, I’m not happy with it, so we’ll see what happens,” Trump said at the White House. He did not elaborate on what he saw as its shortcomings, but expressed frustration with Iran’s leadership.

“It’s very inconsistent leadership,” Trump said. “They all want to make a deal, but they’re all confused.”

Iran’s state news agency IRNA reported that Iran handed over its plan to mediators in Pakistan on Thursday evening.

The shaky three-week ceasefire between the US and Iran appears to be holding, although both countries have made accusations of violations. The impasse is putting increasing pressure on the global economy, driving up prices and causing shortages of fuel and other products related to the oil industry.

Negotiations continued by telephone after Trump canceled his envoy’s trip to Pakistan last week, the president said. Trump this week introduced a new plan to reopen the critical passageway used by America’s Gulf allies to export their oil and gas.

Iranian Foreign Minister Abbas Araghchi has informed many of his regional counterparts about the country’s initiatives to end the war, according to his social media. He also held talks on Friday with Kaja Kallas, the European Union’s foreign policy chief, who liaises with the EU’s Gulf partners.

Iran hangs two men convicted of spying for Israel

Iran said Saturday it has hanged two men convicted of spying for Israel.

Iranian judiciary news channel Mizanonline identified the men as Yaghoub Karimpour and Nasser Bekrzadeh. They were hanged after the country’s Supreme Court upheld previous death sentences.

The news agency said Karimpour was accused of sending “sensitive information” to an officer of Israel’s Mossad intelligence service, while Bekrzadeh allegedly sent details about the government and religious leaders, as well as information about Natanz. The central Iranian city is home to a nuclear enrichment facility that was bombed by Israel and the US last year.

Iran has hanged more than a dozen people in recent weeks for alleged espionage and terrorist activities.

China’s UN envoy urges Iran to lift restrictions

Fu Cong, China’s ambassador to the United Nations, said Friday that maintaining the ceasefire is “the most urgent issue” and that he is bringing the sides together to resume negotiations in good faith “to ensure that the foundation has been laid for the reopening of Hormuz.”

Foreign Minister Wang Yi “has been on the phone almost continuously” with representatives of all parties, Fu said, adding that China supports Pakistan’s efforts to mediate between the parties.

Fu emphasized that the root cause of the enormous suffering in Iran and neighboring countries and the growing unrest in the global economy, especially in developing countries, “is the unlawful war of the US and Israel.”