Iran Grants Unrestricted Passage Through Strait of Hormuz to Key Trading Partners

Iran has waived the Strait of Hormuz restrictions for vessels from India, China, Iraq, and Qatar, according to a senior Iranian parliament member.

These vessels are allowed to transit without interception, according to Amir Hayat Moqaddam, deputy chairman of Iran’s National Security and Foreign Policy Committee, speaking to the Iranian Students’ News Agency (ISNA).

Iran temporarily closed the Strait of Hormuz shortly after the U.S.–Israel conflict began on February 28, and the United States subsequently reimposed a naval blockade on Iran’s southern ports in July.

The reason behind these exemptions and the feasibility of free navigation amid the ongoing blockade are the central questions.

What Iran Gains from Allowing Vessels Through the Strait

In exchange, Iran will obtain medical supplies from India and diplomatic backing from China, Hayat Moqaddam said, noting that Qatar already provides diplomatic support as it leads mediation to end the U.S.–Israel conflict involving Iran.

Moqaddam added that Tehran will levy transit fees on Indian and Chinese ships, while Qatari vessels will pass without charge; he did not specify whether Iraqi ships will be subject to a toll.

‘Whatever the lawmaker claims is the rationale, the real issue is whether it works and, if so, to what degree,’ Rouzbeh Parsi, an Iran analyst and researcher at Lund University’s Department of History and Human Rights Studies, told Al Jazeera.

He noted that Iran has endured sanctions for a long time, making barter and reciprocal trade commonplace; the new element is that Iran is creating openings in the embargo to secure essential goods and services.

Nader Hashemi, an associate professor of Middle East politics at Georgetown University, suggested that Iran is probably imposing a transit fee based on cargo value to enable ships to pass without harassment.

‘It is a shrewd move by Tehran for several reasons,’ said Wolfgang Pusztai, a security and defence analyst and former Austrian defence attaché to Libya, speaking to Al Jazeera.

‘If successful, this initiative will generate substantial revenue for Iran, as China is the dominant buyer of Iranian crude oil, accounting for roughly 90 % of Iran’s total oil exports,’ he said.

By involving Qatar—home to numerous LNG buyers—and India, Iran is also seeking to challenge Washington’s strategy in the conflict, especially since it imposes no toll on Qatari vessels, he added.

Why These Four Nations Care About the Strait of Hormuz

All four countries rely heavily on the Strait of Hormuz for their export shipments.

According to senior crude oil analyst Muyu Xu of Kpler, about 42 % of the 10.23 million barrels per day of Gulf crude that traversed the strait in October were destined for China, while 13 % went to India.

‘China is the nation best positioned to circumvent U.S. interests; the question is whether Beijing deems the political cost acceptable,’ Parsi said.

Asia depends heavily on Gulf oil and gas typically shipped through Hormuz; these countries have significant incentives to facilitate such passage.

‘For India, the loss of Gulf oil has been substantial, and India is a major producer of pharmaceuticals that Iran cannot produce itself,’ he said.

Qatar, which is mediating between Washington and Tehran, moved 1.8 million tonnes of LNG in October, Xu said.

Its crude shipments fell from 517,000 barrels per day to 193,000, while Iraq’s increased from 1.69 million to 2.65 million barrels per day.

Kpler has been unable to trace up to two million barrels per day of Middle Eastern crude, meaning the actual flows for both countries could be higher, Xu said.

‘India and Qatar maintain close ties with Washington that they need to preserve, even as both feel let down by Trump,’ Parsi added, noting that ‘for Qatar, preserving a relationship with Iran is essential because it is an unavoidable neighbour.’

‘Thus, all four stand to gain from these Iranian exemptions while also facing political risks,’ he said.

Is This Announcement New?

Not entirely.

Iran began allowing vessels from friendly nations to pass within weeks of the war’s onset, and in April its military command announced that Iraq—described as “brotherly”—was exempt.

With Iraq’s exemption, Iran likely aims to bolster the economic recovery of its western Shia-majority neighbour, Pusztai said.

Can Ships Navigate Past the U.S. Blockade?

This will depend on Washington’s willingness.

U.S. Central Command (CENTCOM) has stated that the blockade applies to all vessels, regardless of nationality, entering or leaving Iranian coastal areas or ports, though vessels that avoid Iranian ports are not subject to it.

It also said humanitarian shipments—including food and essential medical supplies for civilian populations—may pass after inspection.

Moqaddam did not appear to restrict the exemptions to ships trading with other Gulf states, Pusztai noted, adding that if true, the measure would also affect other Gulf states, such as Saudi Arabia.

‘This could make the ongoing U.S. naval blockade more difficult and less effective, provided Washington accepts the Iranian move,’ he said, adding that the exemption would also encompass Chinese and Indian ships traveling to or from Iran, if the U.S. permits.

Pusztai cautioned that it remains unclear whether ‘ships of these countries’ refers to the vessel’s flag, ownership, operation, or another linkage.

Ending the blockade is a key demand of Tehran before it will engage in broader peace talks with the United States, which would include discussions on Iran’s nuclear programme. Qatar‑mediated negotiations currently focus on Iran’s proposal to reopen the strait contingent on the U.S. fulfilling seven conditions, one of which is this exemption and the lifting of sanctions.

‘It appears Iran is attempting to separate the issues of free passage through the Strait of Hormuz and oil exports from the nuclear question,’ Pusztai said, adding that ‘the American response will indicate whether this strategy succeeds.’

Will This Impact Oil Markets?

Not significantly, at least for the moment.

‘I think they represent only limited impact at present,’ Chris Beauchamp, chief market analyst at IG Group, told Al Jazeera.

‘Markets are currently pricing in a potential peace agreement, but if conflict escalates, Iranian commanders may lack the time to differentiate their targets,’ he added, noting that ‘the focus remains squarely on the prospects of a broader deal.’

An exemption does not ensure safety; on October 30, the Qatari LNG carrier Al Mayeda was hit by unidentified objects in the Gulf, according to its owner, Qatar Gas Transport Company.

Over 120 commercial vessels have been struck in the region since the war began, with October marking the worst month, according to data from the International Maritime Organization and the United Kingdom’s Maritime Trade Operations.

Source link