Iran Says It Will Control New Hormuz Shipping Corridor

Iran announced on Monday its intent to sign an agreement with Oman to create a new shipping corridor through the Strait of Hormuz, under Iranian control. This restricted maritime zone would surround the vital oil chokepoint and require vessels to coordinate with Tehran before entering. Supremo National Security Council secretary Mohsen Rezaei revealed the restricted zone would stretch from the U.S. naval blockade line through Hormuz and into the Persian Gulf.

Any ship that attempted to transit the strait without prior coordination with Iran would be added to Tehran's sanctions list. The two nations have been negotiating a temporary corridor for weeks, though earlier plans had divided responsibilities between them. The latest proposal, however, maintains that Iran would manage the corridor in coordination with Oman.

The International Maritime Organization has yet to receive an official proposal. Meanwhile, U.S. forces recently struck three Iranian oil tankers following Iran's missile attack on two American warships, escalating the maritime conflict into the oil trade. Commercial vessel traffic through Hormuz has plummeted to its lowest point since May, according to Reuters.

Oil prices have since surged, with Brent crude trading above $97 per barrel as Goldman Sachs warns a further escalation of attacks could push crude prices as high as $120 per barrel. Iran maintains that Hormuz remains closed and refuses any resumption of unrestricted passage until U.S. attacks and the naval blockade cease. In contrast, Washington contends that millions of barrels of oil continue to flow through the waterway. Independent tanker tracking data, however, reveals traffic significantly below prewar levels.