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Strait of Hormuz

Iran forms authority to manage Strait of Hormuz amid dragging negotiations

News Desk
Published Monday, May 18, 2026 - 17:34

Iran’s Supreme National Security Council announced Monday the formation of a new body to manage the Strait of Hormuz, escalating regional tensions following Tehran’s closure of the strategic waterway in early March. 

The council stated on its official X account that the new entity, the Persian Gulf Strait Authority, will provide “real-time operational updates and developments” regarding the corridor. 

The move follows an almost complete ban on shipping transit imposed by Iran in late February after the US attack on the 28th. While a fragile ceasefire has been in place since April 8 amid efforts to secure a permanent peace agreement, Iran’s restriction of the maritime corridor has disrupted global markets, driving oil prices up to $120 a barrel from approximately $67. 

Tehran maintains that collecting transit fees from vessels using the strait is a legitimate right to compensate for losses from US–Israeli attacks. Iranian Foreign Ministry spokesperson Esmaeil Baghaei stated Monday that while it is natural for coastal states to charge for services, the core issue remains ensuring safe passage, which incurs costs.

He noted that Iran and Oman could establish a cooperative mechanism under international law. Legal and maritime experts previously told Al Manassa that such unilateral fee collection would violate international law and United Nations conventions.

The leverage has allowed Tehran to pressure Washington to lift sanctions and accept its conditions for ending the war. In response, the United States has enforced a naval blockade on Iranian ports and the strait, demanding the passage reopen and Iran halt uranium enrichment and its missile program.

Baghaei emphasized that Iran holds no hostility toward regional neighbors and called for an internally driven security mechanism, arguing that the US naval presence causes insecurity. He added that Tehran is working to repair regional relations strained by American actions. 

Parallel diplomatic efforts to end the war continue through a Pakistani mediator. Baghaei confirmed that Iran sent its responses two nights ago after Washington raised reservations about Tehran's initial 14-point plan.

A Pakistani source confirmed Islamabad briefed US officials on Iran’s revised proposal but warned that time is limited as both sides frequently alter their conditions. US President Donald Trump told Fortune magazine that while Iran expresses a desire for an agreement, their formal written proposals often diverge from preliminary understandings. 

According to the Fars News Agency, Tehran’s key conditions for a deal include ending the war on all fronts—specifically in Lebanon—fully lifting US sanctions, releasing all frozen Iranian assets, paying war compensations, and recognizing Iran’s full sovereignty over the Strait of Hormuz.

Conversely, Washington demands that Iran restrict its nuclear operations to a single facility and transfer 400 kilograms of uranium to the United States. The US has rejected paying any war-related compensation or releasing even 25% of the frozen assets