UN Maritime Agency Urges Nations to Reject Iran's Control Over Strait of Hormuz

The governing council of the International Maritime Organization (IMO), the U.N.'s shipping agency, has formally called on member states to reject Iran's attempts to assert sovereignty over the Strait of Hormuz. The move follows Tehran's creation of a new body to control vessel traffic through the critical global waterway, a development that could heighten risks for global energy markets.

IMO Council Condemns Iranian Move

In a non-binding decision reached on Friday, the IMO's 40-member council "strongly condemned" Iran's establishment of the "Persian Gulf ​Strait Authority," according to the text of the agreement. The decision was made during a session where Gulf countries, the United States, and Iran clashed over the future of the strategic passage.

The council urged its 176 member states not to recognize any Iranian decisions that could "obstruct, hamper or otherwise interfere with international navigation and the right of transit passage." This includes rejecting Iran's "claim of sovereignty over the Strait of Hormuz" and its assertions of jurisdiction over the maritime zones of other states in the region.

Tehran Defends New Maritime Rules

Iran's new authority had stated in a June advisory that no vessel would be permitted to pass through the waterway "without a valid passage permit" issued by the body. In response to the council's discussions, Iran's delegation to the IMO, which does not hold a seat on the council, rejected the allegations as "selective, politically motivated and legally unfounded."

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Tehran argued that it is not a party to the UN Convention on the Law of the Sea (UNCLOS) and is therefore "not bound by the treaty-based regime." The delegation asserted that its measures are intended to uphold maritime safety and security and do not constitute a closure of the strait.

Market Implications for a Critical Chokepoint

The Strait of Hormuz is one of the world's most important maritime chokepoints, with a significant portion of global oil and liquefied natural gas (LNG) supplies passing through it daily. This diplomatic escalation comes amid heightened regional tensions, including recent U.S. military airstrikes and attacks on commercial shipping that Washington has attributed to Tehran.

Any attempt by Iran to enforce control over the strait could have significant repercussions for global markets. Such actions could lead to higher shipping insurance premiums, increased oil price volatility, and potential disruptions to global energy supply chains, impacting investors and consumers worldwide.