Iran Demands Control of Inbound Hormuz Shipping in Talks, Source Says

Iran wants to control all inbound shipping through the Strait of Hormuz and maintain oversight of outbound traffic under a temporary plan to reopen the critical waterway, a senior Iranian source involved in discussions with Oman told Reuters on Tuesday.

The proposal is a key point in negotiations to end the blockade of the strait, which has been largely shut since the start of a conflict with the U.S. and Israel in late February.

Details of the Proposal

According to the source, the plan being discussed would grant Tehran authority over ships entering the Gulf. The outbound lane would follow a route between Iran and Oman, with vessels requiring clearance from Oman after notifying Iran.

The source, who described this as "the general idea currently being discussed," noted that Tehran has already shown flexibility by stepping back from an initial demand for full control over traffic in both directions. In July, Iran rejected an Omani proposal for an equal division of transit routes, citing security concerns.

Geopolitical Context

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Control over the Strait of Hormuz remains a central sticking point in efforts to end the conflict. Washington and Tehran reportedly disagree on the terms of a June memorandum of understanding to halt the war, with the U.S. insisting it required Iran to reopen the waterway and Tehran claiming the text preserved its authority over shipping.

Before the conflict, vessels passed freely through the strait under a two-way traffic separation scheme established in 1968. The system designated sailing corridors through the territorial waters of both Iran and Oman.

A Critical Global Chokepoint

The Strait of Hormuz is a narrow channel, just 34 km (21 miles) wide at its narrowest point, connecting the Gulf to the Indian Ocean. It serves as the primary sea route for approximately one-fifth of the world's oil supplies and other essential goods.

Any prolonged disruption to traffic in the strait has significant implications for global energy markets and supply chains, potentially leading to price volatility and logistical challenges.