Iran and Oman appear to be near finalizing a deal that would reopen the Strait of Hormuz and give Iran far more control of the strategic waterway than before the U.S. and Israel attacked Iran five months ago. Under the proposed deal, ships heading into the Persian Gulf would transit through a channel controlled by Iran. Ships leaving the area would travel on a channel controlled by Oman. Iranian officials say ships would be forced to pay a “service fee” that would be divided equally between Iran and Oman.

Meanwhile, Iran and the United States have traded new threats. On Monday, President Trump threatened Iran with decapitation if it doesn’t agree to a new deal, while Iran is threatening to target U.S. warships if the U.S. does not lift its naval blockade of Iran.