Iran Proposes New Hormuz Shipping Corridor Under Its Control

Iran is preparing to sign an agreement with Oman to create a new shipping corridor through the Strait of Hormuz, which would operate under Iranian control. Vessels intending to use this corridor would be required to coordinate with Tehran to enter a newly designated restricted maritime zone, OilPrice.com reported on Monday.

Mohsen Rezaei, Secretary of Iran’s Supreme National Security Council, indicated that this restricted zone would extend from the US naval blockade line, through Hormuz, and into the Persian Gulf. Ships that transit the strait within this zone without coordinating with Iran could face placement on Tehran’s sanctions list.

Negotiation Details and International Response

Negotiations between Iran and Oman regarding a temporary corridor have been ongoing for several weeks. Initial proposals had suggested a division of responsibility for traffic management between the two nations. However, the latest proposal reportedly outlines that Iran would manage the corridor in coordination with Oman.

OilPrice.com noted that Lloyd’s List reported on Monday that the International Maritime Organization had not yet received an official proposal regarding this development.

Maritime Tensions and Market Impact

Recent maritime incidents have escalated tensions in the region. Over the weekend, US forces reportedly struck three Iranian oil tankers, following Iran's launch of ballistic missiles at two US warships. Iranian forces have also reportedly targeted commercial vessels accused of using unauthorised routes. This activity has contributed to a reduction in traffic through Hormuz, which independent tanker tracking indicates is significantly below pre-war levels, according to Reuters.

Oil prices have reacted to the heightened risks. Brent crude was trading above $97 per barrel on Monday morning. Goldman Sachs has reportedly warned that an expansion of attacks on commercial shipping could potentially drive crude prices to as high as $120 per barrel. Iran maintains that unrestricted passage through Hormuz will not resume as long as US attacks and the naval blockade persist, while Washington claims millions of barrels of oil continue to flow through the waterway.