Iran has set conditions for reopening the Strait of Hormuz, insisting that the United States must change its approach towards Tehran before the strategic waterway can fully reopen.

Iran's Supreme National Security Council said the US must permanently end its military campaign against Iran, stop threatening the country, lift its naval blockade, withdraw its forces from the region.

Tehran also demanded compensation for damage caused by the war, the lifting of sanctions, the unconditional release of frozen Iranian assets. Iranian officials said the reopening of the strait would depend on Washington accepting the conditions.

The demands have complicated ongoing diplomatic efforts involving Oman, despite earlier reports that Iranian, Omani negotiators had made progress towards an agreement on reopening the waterway.

Iran's Revolutionary Guard also said reopening the Strait of Hormuz would not depend solely on the talks with Oman, stressing that the decision remained tied to Iran's conditions.

The development comes amid continued disruption to shipping through the strait, a major route for global oil, gas supplies. The standoff has raised concerns over energy markets, international trade, the wider regional security situation.