The Strait of Hormuz remains closed to commercial shipping, with Iran imposing $2 million transit fees on some vessels, according to Iranian lawmaker Alaeddin Boroujerdi. The closure follows coordinated U.S.-Israeli strikes against Iranian targets last month, escalating tensions in the region.
At the CERAWeek energy conference in Houston, analysts and former U.S. officials discussed the impasse. Former Defense Secretary Jim Mattis warned that declaring victory over Iran without securing a deal would cede control of the strait to Tehran. He stated that Iran would claim ownership of the waterway and continue charging passage fees.
Paul Sankey, lead financial analyst with Sankey Research, suggested that the U.S. may need to withdraw from the region, leaving Gulf Cooperation Council (GCC) states and Iran to negotiate a resolution. He emphasized that Iran already controls the strait, making military solutions ineffective for ensuring shipping safety.
President Donald Trump has threatened to target Iran's power infrastructure if the strait is not reopened within 48 hours, though a five-day pause on military strikes has been declared. Despite this, neither side appears willing to compromise, according to Mattis, who noted that air power alone has never changed a regime.
The Strait of Hormuz is a critical global shipping route, with 20% of the world's oil passing through it. The closure has led to a buildup of tankers in the Arabian Sea, raising concerns about global energy markets.