Iran transforms control over Strait of Hormuz into potent economic weapon

The UAE has accused Iran of launching a missile attack on a vessel belonging to Abu Dhabi’s state-owned oil company ADNOC in the Strait of Hormuz, though no injuries were reported. This incident adds to the already tense situation surrounding the strategic waterway. Tehran reported that an agreement between Oman and Iran on managing shipping is nearing completion, but reopening the route would require additional conditions, including compensation from the United States.

Iran's Supreme National Security Council Secretary Mohammad Bagher Zolghadr demanded an end to US threats and military actions against Iran, as well as the lifting of the US naval blockade, removal of sanctions, unfreezing of Iranian assets, and payment of compensation for war damages. The Revolutionary Guards claimed that reopening the Strait of Hormuz depends on Iran's conditions being accepted by the United States, and not on negotiations with Oman.

Meanwhile, Oman's Foreign Ministry stated that talks with Iran over shipping arrangements through the Strait of Hormuz were ongoing in a positive and constructive manner, while urging all parties to avoid actions that could undermine the negotiations. The United Kingdom Maritime Trade Operations reported that a vessel east of Khasab, Oman, experienced a fire due to an unknown projectile, but the crew and vessel were safe, with no environmental impact.

The uncertainty surrounding potential agreement between Iran and Oman has disrupted global oil shipments, as Iran has been charging tolls on oil tankers and attacking vessels attempting to cross the strait without permission, contributing to higher energy prices and inflation.