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Under the proposal, Iran and Oman would collect payment for ships passing through the Strait of Hormuz, according to officials and diplomats with knowledge of the matter.
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If the core U.S.-Iran dispute has long been Tehran's nuclear program, the tit-for-tat strikes in the Strait of Hormuz make clear that control of the waterway is of immediate concern to both. Neither wants a resumption of full-scale war, yet threats are flying.
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The defence investment plan will set out how billions will be spent on equipping the UK Armed Forces.
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