Iran closure claim leaves Hormuz shipping decisions to carriers
Tehran said the Strait of Hormuz is closed again, while the U.S. said cargo and oil traffic continued through the key waterway.
By Sofia Marchetti · World Affairs Correspondent
3 min read
Iran’s military command said Saturday it had closed the Strait of Hormuz, days after the U.S. and Iran signed a memorandum of understanding meant to reopen the waterway. The conflicting signals matter because oil cargoes and other trade will depend less on official declarations than on whether shipowners and insurers believe passage is safe.
Iran’s military cited ongoing Israeli attacks on Lebanon and accused the U.S. of bad faith in carrying out commitments to end the war, according to Fortune. The military also warned that it had planned further steps if aggression continued.
U.S. Central Command disputed the practical effect of Iran’s statement, saying commercial transit through the strait remained safe and active. CENTCOM said 55 merchant vessels carrying cargo and 17 million barrels of oil moved through the passage on Saturday.
The command said U.S. forces were still in the area to support freedom of navigation. It also cited a Thursday advisory from the Joint Maritime Information Center that said a southern route near Oman’s coast was safe for shipping.
The U.S.-Iran agreement ended a U.S. naval blockade on Iran, according to Fortune. CENTCOM said American forces would stay present to ensure the agreement was followed.
Iran’s Persian Gulf Strait Authority offered a different framework for ship traffic. The authority said vessels must use a route set by Iran along the Iranian coast and said other routes were barred, according to Fortune.
The authority also said shipowners would need insurance under its system. Iran said the coverage is now free and paid for by the Islamic Republic, but the authority reserved the right to impose fees later through the relevant insurer.
Those conditions add to uncertainty for carriers deciding whether to send vessels through the strait. Fortune reported that oil prices fell after the U.S. and Iran announced the agreement last weekend, but that a full recovery in flows could take months.
Fortune also reported that global inventories remain under strain while supplies are reduced, and that the U.S. Strategic Petroleum Reserve has fallen to its lowest level since 1983.
Gregory Brew, a senior analyst at Eurasia Group, said on X that governments cannot decide by announcement alone whether the strait is open in commercial terms. He said shipping and insurance companies will make that determination.
Brew also said Iran’s closure announcement could be intended to strengthen Tehran’s position as negotiations with the U.S. begin. Other Iran specialists expected the announcement to discourage vessels just as traffic had begun to rise, according to Fortune.
Shipping companies had already shown caution before Saturday’s statement. A shipping executive told The New York Times on Friday that conditions were too uncertain for his vessel to leave the Persian Gulf.
The New York Times also reported that Hapag-Lloyd had ships in the Persian Gulf ready to depart but still waiting. A spokesman for the German shipping company said Friday there was no indication yet of when the vessels would move.
Fortune reported that risks include underwater mines and navigation hazards such as collisions, especially if many vessels try to exit at the same time. The Strait of Hormuz has also seen repeated U.S.-Iran skirmishes before the latest agreement, according to Fortune.
The strait remains Iran’s main point of leverage, Brew said. Fortune reported that Iran showed during the war that it could shut the passage despite U.S. and Israeli bombardment, while the U.S. has promoted its ability to protect the route near Oman.
This story draws on original reporting from Fortune.