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To reach a deal with Iran that reopens the economically vital Strait of Hormuz, President Donald Trump may need to do something out of character - compromise. 

Any concession would be tough for the Republican president, who has insisted there is no truth to his sagging poll numbers, the sluggish economy and the US military's dwindling stockpiles of key weapons following the Iran war he launched with Israel more than five months ago.

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Trump administration has said repeatedly that it is strongly opposed to any arrangement that would see Iran charge fees. 

Any temporary routes through the waterway will not have tolls, charges or other impediments, according to a US official not authorised to comment publicly who spoke Thursday on condition of anonymity. 

The official said Trump's preferred choice is diplomacy and he "holds all the cards" in dealing with Iran.

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