I believe you need to first import the RHEL iso and create a new virtual machine through an open source virtualization software such as VirtualBox, then export the VM as an ova image. Afterwards you can simply import that image into S3 where it will be converted into an ami. There are extra steps to keep in mind during this process, but the below information will have that covered.
For additional details/steps, here is a useful guide for accomplishing this process in full: https://email@example.com/create-your-own-ami-on-aws-from-iso-or-vm-c60fc82dd252
Of course, here is also a link to an official AWS doc on importing VM images into S3 for additional clarity if needed: https://docs.aws.amazon.com/vm-import/latest/userguide/vmimport-image-import.html
Hope that helps!
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