DUBAI – As diplomatic efforts to establish a ceasefire in the escalating Middle East conflict seem to wane, Iran and the United States are entrenching their stances. On Thursday, Tehran took steps to cement its grip over the strategically vital Strait of Hormuz, while Washington geared up to deploy U.S. troops to the region, potentially readying for ground operations within Iran.

In Israel, air raid sirens blared warnings of incoming Iranian missile strikes, while in the United Arab Emirates, two fatalities and three injuries were reported due to debris from a missile interception over Abu Dhabi on Thursday.

According to industry specialists, Iran is establishing a “de facto ‘toll booth’ system,” with some vessels reportedly paying in Chinese yuan to navigate the Strait of Hormuz, a crucial chokepoint through which 20% of global oil and natural gas trade flows during peacetime.

Concurrently, the USS Tripoli, an amphibious assault ship, along with a strike group, is moving closer to the Middle East, carrying around 2,500 Marines. Additionally, over 1,000 paratroopers from the 82nd Airborne Division have been directed to the area.

The mobilization of these forces does not necessarily indicate that U.S. President Donald Trump intends to use military force to compel Iran to reopen the strait or cease its assaults on Gulf Arab nations.

Previously, Trump deployed a significant military presence in the Caribbean, leading to the capture of former Venezuelan leader Nicolás Maduro in January. In the current scenario, the U.S. might be considering targeting Iran’s oil terminal at Kharg Island or other strategic locations near the strait.

U.S. Navy Adm. Brad Cooper, who commands the American military in the region, said his forces have hit more than 10,000 targets since Israel and the U.S. started the war Feb. 28, destroying 92% of Iran’s largest ships and more than two-thirds of the country’s missile, drone and naval production facilities.

“We’re not done yet,” said Cooper, who heads the U.S. Central Command, in a video message. “We are on a path to completely eliminate Iran’s wider military apparatus.”

Iran seen as operating Strait of Hormuz as ‘de facto toll booth’

With its stranglehold on traffic through the Strait of Hormuz, which leads from the Persian Gulf toward the open ocean, Iran has been blocking ships it perceives as linked to the U.S. and Israeli war effort, but letting through a trickle of others.

The Fars and Tasnim news agencies, both close to Iran’s paramilitary Revolutionary Guard, quoted lawmaker Mohammadreza Rezaei Kouchi as saying that parliament was working to formalize the process of charging fees to let ships pass.

“We provide its security, and it is natural that ships and oil tankers should pay such fees,” he was quoted as saying.

Lloyd’s List Intelligence called it a “de facto ‘toll booth’ regime.”

The shipping intelligence firm said vessels have to provide manifests, crew details and their destination to Iran’s Guard for sanctions screening, cargo alignment checks that currently prioritizes oil over all other commodities, and for what is described as ‘geopolitical vetting.’”

“While not all ships are paying a direct toll, at least two vessels have and the payment is settled in yuan,” Lloyd’s List said, referring to China’s currency.

Iran’s grip on the strait and relentless attacks on Gulf regional energy infrastructure has sent oil prices skyrocketing and concerns of a global energy crisis surging. Brent crude, the international standard, traded at US$104 early Thursday, up more than 40% from the day the war started.

“To make it crystal clear, this war is a catastrophe for world’s economies,” German Defense Minister Boris Pistorius told reporters during a visit to Australia.

US maintains negotiations are ongoing but Iran says there are no talks

Using Pakistan as an intermediary, Washington has delivered to Iran a 15-point ceasefire proposal, which includes the reopening of the Strait of Hormuz.

Trump, speaking at a fundraiser Wednesday night in Washington, insisted that Iran still wants to cut a deal.

“They are negotiating, by the way, and they want to make a deal so badly, but they’re afraid to say it because they figure they’ll be killed by their own people,” Trump said.

Iran’s Foreign Minister Abbas Araghchi said in an interview on state TV, however, that his government has not engaged in talks to end the war, “and we do not plan on any negotiations.”

Araghchi said the U.S. had tried to send messages to Iran through other nations, “but that is not a conversation nor a negotiation.”

Press TV, the English-language broadcaster on Iranian state television, said Iran has its own five-point proposal, which includes “sovereignty over the Strait of Hormuz.”

A wave of Israeli airstrikes hits as Iran fires on Gulf neighbors

Israel said it carried out a wave of attacks early on Thursday targeting Iranian infrastructure, and air defenses were heard in Tehran, while heavy strikes were also reported around Isfahan, a city some 330 kilometers (205 miles) south of the Iranian capital.

Ifahan is home to a major Iranian air base and other military sites, as well as one of the nuclear sites bombed by the U.S. during the 12-day war between Israel and Iran in June.

Sirens sounded very early on Thursday morning in parts of Tel Aviv and cities in central Israel and later explosions were heard in Jerusalem. Rescue workers said two people were injured in a blast in Kfar Qasim.

Saudi Arabia’s Defense Ministry said it intercepted multiple drones over its oil-rich Eastern Province, and Bahrain reported extinguishing a blaze in a neighborhood that is home to the Bahrain International Airport.

Since the war began, more than 1,500 people have been killed in Iran, its Health Ministry says. Twenty people have been killed in Israel; three Israeli soldiers have also been killed in Lebanon, including one whose death was announced Thursday. At least 13 American troops have been killed. More than a dozen civilians in the occupied West Bank and Gulf Arab states have also died.

Nearly 1,100 people have died in Lebanon, authorities said. In Iraq, where Iranian-supported militant groups have entered the conflict, 80 members of the security forces have been killed.

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Rising reported from Bangkok. Associated Press writers Julia Frankel in Jerusalem, Rod McGuirk in Melbourne, Australia, and Giovanna Dell’Orto in Miami, Florida, contributed to this report.