How to Keep the Strait of Hormuz Open in the Long Term

Why It Matters

Hormuz channels roughly one‑fifth of global oil; its stability directly affects energy prices and international shipping security.

Key Takeaways

• US‑Iran ceasefire announced April 7, reopening Hormuz temporarily
• Iran plans to charge transit fees with Oman after two‑week ceasefire
• Joint sanctions relief and multilateral management proposed to shift Tehran’s leverage
• Malacca Straits Patrol model suggested for coordinated Gulf security
• Lack of UNCLOS participation hampers legal framework for Hormuz shipping

Pulse Analysis

The Strait of Hormuz, through which roughly 20% of global oil passes, was sealed on March 2 after hostilities erupted between the United States, Israel and Iran. A cease‑fire announced on April 7 temporarily reopened the waterway, but only under the supervision of the Islamic Revolutionary Guard Corps for a two‑week window. During the shutdown, Iran laid sea mines, bombed vessels and began demanding transit fees, turning the chokepoint into a source of revenue and strategic leverage. The abrupt disruption sent insurance premiums soaring and underscored the fragility of global energy supplies.

Washington and Tehran have floated a joint‑venture concept that would let Iran collect tolls while guaranteeing safe passage for commercial ships. In practice, the proposal hinges on structured sanctions relief and a multilateral verification mechanism that would replace Iranian‑only checks. By pairing Iranian‑bound cargoes with neutral merchant vessels, a convoy system could deter attacks and create a financial incentive for Tehran to keep the strait open. Such confidence‑building steps aim to transform Hormuz from a bargaining chip into a predictable conduit for trade.

Regional actors are looking to proven maritime frameworks for a durable solution. The Malacca Straits Patrol, launched in 2004, coordinates naval patrols, information sharing and traffic separation schemes, effectively removing the Malacca corridor from war‑risk classifications. Adapting a similar structure—potentially anchored by Oman and supported by GCC states, the United Kingdom and the United Nations—could establish a Gulf‑wide traffic‑management centre and joint search‑and‑rescue zones. Although Iran is not a party to UNCLOS, a bespoke multilateral agreement would provide legal certainty, lower insurance costs and safeguard the flow of oil that fuels the world economy.