Iran demands inbound control of Hormuz and outbound oversight, source says

DUBAI, Aug 4 (Reuters) - Iran wants control over inbound shipping through the Strait of Hormuz and visibility over outbound traffic, with the ability to intervene if necessary, under a temporary plan being discussed with Oman to reopen the strategic waterway, a senior Iranian source told Reuters on Tuesday.

The source, who is involved in the talks, said this is "the general idea currently being discussed", and specified that the outbound lane would follow a route between Iran and Oman, with exit clearance granted through Oman after notifying Iran.

"Tehran is unlikely to change its position," the source added, saying that Tehran has already shown flexibility by moving from its initial position of seeking full control over traffic in both directions in the strait.

Last month, Iran rejected an Omani proposal for an equal division of transit routes between the two countries, which Tehran said failed to address the country's security concerns until long-term regional stability is achieved.

Control of the strait, the narrow waterway between the Gulf and the Indian Ocean that is the main route for about a fifth of world oil supplies and other vital goods, has been a main sticking point in efforts to end the U.S.-Israeli war on Iran.

The waterway has been largely blocked since the start of the war in late February. The dispute over Hormuz remains a central point of contention.

Washington says June's memorandum of understanding with Tehran to halt the war required Iran to reopen the strategic waterway, while Tehran says the text explicitly preserved its authority over shipping traffic.

Before the war, shipping passed freely through the strait, which is in the territorial waters of both Iran and Oman but which is generally regarded as an international waterway.