Iran is losing control of the Strait of Hormuz
Key Points:
- The United States is gaining control of the Strait of Hormuz, with over 80% of vessel transits recently using the Omani route, a shipping channel opposed by Iran but protected by the U.S. Navy.
- Iran has attacked ships using its preferred northern route but has lost much of its ability to enforce tolls on shipping traffic, especially after the expiration of the U.S.-Iran Memorandum of Understanding.
- Major oil exporters like Kuwait, Saudi Arabia, and the UAE are rerouting oil shipments via the safer Omani route and using tactics like turning off transponders to evade Iranian attacks.
- Despite U.S. claims of "total control" over the strait, Iran still exerts some deterrence, and oil flows remain below pre-war levels, indicating neither side fully controls the waterway.
- Oman and Iran are negotiating to restore navigation freedoms without U.S. involvement, adding uncertainty to future control and oil transit dynamics in the Strait of Hormuz.