Iran Threatens to Block Illegal Transit in Strait of Hormuz
Iran intends to block illegal transit routes in the Strait of Hormuz as Gulf oil exporters use bypasses to maintain flows amid a U.S. blockade.
The Government of Iran is escalating its control over the Strait of Hormuz, with Mohammadreza Naqdi, an adviser to the Islamic Revolutionary Guard Corps, announcing plans to block transit routes deemed illegal. Naqdi specifically targeted southern pathways along the coast of Oman, which he claimed were created to facilitate oil smuggling via small boats. He asserted that Iranian armed forces maintain full control over the waterway and will keep it closed until the country's legitimate demands are met.
This escalation follows a period of volatility that began on February 28, when a U.S. and Israeli airstrike in Tehran killed Supreme Leader Ayatollah Ali Khamenei. Since then, a U.S. naval blockade has reduced Iranian seaborne crude exports from 1.7 million barrels per day to near zero. Iranian Foreign Minister Abbas Araghchi stated the strait will remain closed until the United States meets seven conditions from a June interim agreement, though he suggested a proposal could reopen the waterway within seven days if Washington accepts these terms.
Despite the closure, Gulf oil exports recovered to approximately 16.5 million barrels per day in September. Exporters, including the Government of Saudi Arabia, have utilized pipelines, bypass ports, and ship-to-ship transfers in the Gulf of Oman to maintain flows. While Saudi Arabia rebounded exports to 6.9 million barrels per day after damage to its East-West pipeline, these workarounds have increased freight and security costs. Data on current transit remains conflicting, with some reports indicating regional exports reached 18.3 million barrels per day by late September, while IRGC officials claim daily transit has plummeted from 125 ships to just 10.
