Iran has demanded control of the Strait of Hormuz in ceasefire negotiations with the US, according to reports, raising fresh market concern over geopolitical risks surrounding a vital artery for global oil supply.
Walter Bloomberg, an overseas financial news feed, reported May 11 that Iranian state media said Tehran's latest ceasefire proposal to Washington included demands related to sovereignty over and control of the Strait of Hormuz.
The Strait of Hormuz is a key maritime route for crude exports from major Middle Eastern producers including Saudi Arabia and Kuwait. Since military clashes involving the US and Israel intensified in February, shipping through the waterway has effectively been disrupted, the report said, with some oil export flows also affected.
Iran and Oman currently hold partial jurisdiction over exclusive economic zones surrounding the strait. Under international law, however, foreign vessels have the right of innocent passage through the waterway.
Markets are closely watching whether control of the Strait of Hormuz becomes a key issue in future US-Iran negotiations. The strait is a strategic chokepoint that handles a significant share of global seaborne oil shipments.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
