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Explained: Who really controls the Strait of Hormuz?
Since the US-Israel-Iran war, traffic in the key waterway has dropped dramatically, as regional countries sought alternative trade and maritime corridors
- PUBLISHED: Wed 15 Jul 2026, 6:00 AM UPDATED: Wed 15 Jul 2026, 8:05 AM
[Editor's Note: For the latest updates on how US-Iran hostilities have escalated since a 14-point deal was signed on June 17, follow the Khaleej Times live blog.]
The Strait is open. The Strait is closed. Over the last four months, one of the biggest tensions of the US-Iran war has been the wrangling over of the Hormuz, a waterway so central to world economy its disruption sparked a global energy crisis but whose importance most were blissfully unaware of before February 28. Since the war broke out, however, the narrow channel has become one of the world's most critical maritime chokepoints — and a constant 'bargaining chip' in the worsening US-Iran conflict.
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Between the attacks on merchant ships, deployment of sea mines, and what can only be described as yo-yo-ing between apocalyptic rhetoric and attempts to negotiate a deal, the warring nations have 'double-blockaded' the Strait so many times in recent months that it begs the question: Who really controls the Strait of Hormuz?
Why no one country controls the Hormuz
The Strait of Hormuz is a vital waterway which falls within the territorial waters of both Iran and Oman, connecting the Arabian Gulf to the Gulf of Oman. According to the Strauss Centre for International Security and Law, commercial traffic through the Strait flows through the designated Traffic Separation Scheme (TSS) north of the Musandam Peninsula. The TSS is an an international maritime routing measure that organises vessel traffic in congested waters.
The southern coastline of Hormuz passes through Oman, which has historically maintained a peaceful stance in compliance with the United Nations Convention on the Law of the Sea — a position it demonstrated during the ongoing regional conflict.
The northern coastline of the strait belongs to Iran, a territory heavily patrolled by its Revolutionary Guards. Since the war, Iran has regularly issued warnings to foreign vessels transiting the strait and launching strikes on ships it deems to be "violating" its authorisation.
Under the United Nations Convention on the Law of the Sea, however, the right to "innocent passage" applies to straits used for international navigation.
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What is innocent passage?
In simple terms, innocent passage in this case refers to the right of foreign vessels to peacefully transit through a coastal state's territorial waters. Coastal states cannot discriminate against the ships of any state, and no charge may be levied upon foreign ships just for passing through, according to the UN convention.
According to the convention, states bordering straits shall not hamper or suspend transit passage. They should not "impose requirements on foreign ships which have the practical effect of denying or impairing the right of innocent passage". They must also make known any danger to "navigation or overflight within or over the strait of which they have knowledge."
Is Iran party to this convention?
It is worth noting that Iran is not a party to the 1982 UN Convention on the Law of the Sea, according to a statement by its mission to the UN in New York.
The Iranian mission argued that it is thus "not bound by its treaty-based provisions."
As the main coastal State within whose territorial sea the Strait of Hormuz lies, Iran has the legitimate and legal right to take necessary and proportionate measures to address emerging security threats, ensure safe navigation, and prevent the misuse of the Strait of Hormuz for hostile or military purposes.
Iran'S Mission To The Un In New York, April 28, 2026
Why has control of Hormuz become a talking point this year?
After the US and Israel launched strikes on Iran on February 28, Tehran responded by asserting control over the Strait of Hormuz. On March 4, Iran's Revolutionary Guards said they had "complete control" of the strait. As a vital waterway through which one-fifth of the world's energy supplies passed, the impact on the global economy in the months since the war broke out has been severe.
Traffic in the Strait of Hormuz dropped dramatically. Thousands of ships were stranded in Gulf waters. Oil prices escalated rapidly, transport costs including flight tickets soared as fuel rates shot up, and consumers around the world felt the pinch as rates of basic commodities increased. Although the US said its Navy was ready to escort oil tankers through the crucial Gulf shipping route, traffic remained at critical lows, choking supplies.
Ceasefire
On April 8, after over a month of fighting, a ceasefire was implemented, and Trump agreed to suspend bombing Iran for two weeks as part of a deal if Tehran completely reopened the vital strait. Iran said it would guarantee safe passage for maritime traffic through Hormuz for two weeks and use the pause for talks with the US on ending the war. However, the ceasefire was a fragile one, with US-Iran strikes continuing, albeit at a lesser intensity than March.
Establishment of PGSA
During this time, Iran moved to allow countries to pass through the strait provided they paid fees. On May 18, it created an authority called PGSA to approve transit through the Strait of Hormuz and to collect tolls from vessels. The UAE, Bahrain, Kuwait, Qatar and Saudi Arabia responded by issuing a statement rejecting Iran’s establishment of the so-called “Persian Gulf Strait Authority”, which the UAE said had been falsely characterised as a sovereign governance entity to manage vessel traffic through the Strait of Hormuz.
US stance on imposing tolls
The US has long maintained that Iran should not be allowed to impose tolls in Hormuz. In April, when media reported Iran may collect fees from ships passing through, Trump said "they better not be, and, if they are, they better stop now." In early July, US Secretary of State Marco Rubio told reporters that "no country is allowed to charge tolls or fees on an international waterway, that’s existing international law".
While other US officials have maintained that no country can charge tolls, Trump stated it was acceptable for US to do so, but not Iran. In June, Trump said that there will be no tolls in Hormuz during the 60-day ceasefire and after it — unless imposed by and for the US.
Interim deal
After several rounds of negotiations, a 14-point Memorandum of Understanding was signed between the warring nations on June 12. Among other points, the MoU included the "complete lifting of the US naval blockade in 30 days" and the "re-opening of the strait within 30 days 'under Iranian arrangements'."
The interim deal has been violated several times since, with Iran targeting any ships it deems crossing the strait in "unauthorised" ways and the US retaliating by bombing scores of Iranian sites in every instance. In the latest escalation, on July 12, Iran launched attacks on five Arab countries — Bahrain, Kuwait, Qatar, Oman and Jordan — after the US launched retaliatory strikes on Iranian targets.
Strait opened or closed?
On the same day, the IRGC declared the Strait of Hormuz closed until further notice and that it would only be reopened once US military involvement in the region ends.
Responding to this, on July 13, Trump claimed the waterway is open, and "will remain open, with or without Iran. He also announced that as the "guardian angel" of the strait, US would charge 20 per cent on all cargo shipped through Hormuz, in what he called was "reimbursement" for providing security to other countries.
In response, Iran's Foreign Minister Abbas Araghchi took a swipe at Trump, saying he was "absolutely right" and that whoever provides secure and safe passage of commercial vessels through the Strait of Hormuz should be compensated for this service. However, he added, "Iran has always been the GUARDIAN of the Strait and will remain so FOREVER. 20 per cent is of course too much. We will be fair."
In the latest development on July 14, Trump said he was dropping the 20 per cent fee after "highly productive conversations with Middle East leadership".
What is the status of the shipping industry?
The shipping industry has taken a considerable economic hit over the last four months, with each round of fighting threatening maritime safety for ships and their crew. The number of tankers transiting the strait fell to its lowest level in two months, shipping data showed on July 13. In May, Reuters reported that over 20,000 sailors were stuck on around 2,000 vessels in the Gulf, many of them unable to leave ship, lacking adequate supplies of food and fresh water, and fearful of an uncertain future at sea.
The tussle for authority over the Hormuz has not been without casualties. In March, three crew members died after two projectiles struck the Thai-flagged Mayuree Naree. In June, an American strike on a Palau-flagged vessel off Oman killed three Indian sailors. On July 14, an Indian crew member was killed after the UAE national tanker Mombasa was struck by Iranian cruise missiles.
The situation has forced countries to consider alternatives in order to reverse the crisis. In June, Oman announced that it would provide a temporary maritime corridor in the Strait of Hormuz, in coordination with the International Maritime Organisation, to help evacuate over 11,000 stranded sailors.
Iran responded by saying the only authorised passage was a corridor skirting its own coastline, with FM Abbas Araghchi warning that any attempt to use alternative routes risked "escalating tensions" in the region. Iran and Oman have since met in a 'Joint Hormuz Committee' where they seek to discuss the management of the strait.
The UAE, meanwhile, activated alternative trade corridors through the eastern ports of Fujairah and Khor Fakkan, established air freight bridges for time-critical pharmaceutical and food cargo, launched a Green Corridor with Oman, and developed a new Sharjah-Dammam trade bridge, Dr Thani bin Ahmed Al Zeyoudi, UAE Minister for Foreign Trade, said.
Ports and facilities in UAE's Fujairah and Khor Fakkan have drawn strong interest in recent months, with deals worth billions of dirhams signed to develop logistics, industrial and export capabilities. UAE's eastern ports hold strategic significance because they provide direct access to the Indian Ocean outside the Strait of Hormuz, allowing trade flows to continue even during periods of heightened maritime risk.
Poojaraj Maniyeri is a Digital Journalist who loves turning everyday conversations into news stories. She is also a typical bookworm, and brings a novel with her everywhere she goes.