Iran Closes Strait of Hormuz After Striking Unauthorized Vessel

Iran declared the Strait of Hormuz closed until further notice on July 12, 2026, after its Revolutionary Guard Navy struck a vessel traveling an unauthorized route, prompting US strikes on Iranian targets and heightened Iran tensions over maritime security and global oil flows. [1] [2]

Iran Closes Strait of Hormuz After Vessel Strike

The IRGC Navy stated a vessel that switched off its systems and ignored warnings was struck and halted. [1] [2] Several ships attempted unauthorized passage. [1] [2] The closure lasts until the end of US interference in the region, with warnings of a severe response to any aggression including targeting new enemy bases. [1] [2] [4] [5] The IRGC Navy added that the ship had ignored warnings and had been provoked by foreigners into attempting to move along the unapproved route. [5] The strait would remain closed with no vessels allowed to pass through until the end of US interference in the region. [5] Acts of aggression against Iran will be met with a severe response and new enemy bases in the region will be targeted. [1] [2]

US Launches Strikes on Iranian Targets

The US Central Command launched strikes on Iran after the attack on the Cyprus-flagged container ship M/V GFS Galaxy. [2] [5] This marked the third round of strikes this week at President Trump's direction. [2] [5] CENTCOM stated that Iran was provided yet another opportunity to demonstrate adherence to the Memorandum of Understanding after being held accountable for earlier attacks on commercial vessels but has again failed. [5] The United States is imposing a heavy cost by continuing to degrade Iran's ability to attack civilian mariners and commercial ships freely transiting the strait. [2] [5] CENTCOM also stated that a civilian crew member of the ship Iran had struck was missing and that the vessel had sustained significant damage. [5]

US Demands and Ongoing Diplomatic Efforts

US demands Iran publicly commit to stopping attacks on ships and opening all lanes without tolls. [1] [2] [5] Talks involving Oman, Qatar and Pakistan continue amid a war that began with US-Israeli airstrikes on Iran on February 28. [1] [2] US President Donald Trump said on Friday the US and Iran had agreed to continue talks despite an escalation of hostilities this week while also declaring an end to the ceasefire. [1] [2] A senior Iranian source told Reuters that Iran, the US, Qatar and Pakistan had agreed to negotiate in a call that mediators were trying to arrange for Saturday while Iran's Foreign Minister Abbas Araqchi was in Oman. [1] [2] Araqchi and Omani Foreign Minister Sayyid Badr Albusaidi met in Oman to exchange views on appropriate mechanisms for the safe passage of ships through the Strait of Hormuz. [1] [2]

Impact on Global Oil Trade and Energy Prices

The blockade has disrupted one-fifth of global oil supply, surging energy prices and fueling inflation. [1] [2] About a fifth of the world's oil supply transited through the Strait of Hormuz before the war and Iran's effective blockade of the waterway has caused energy prices to surge, fuelling global inflation. [1] [2] Oman is helping to mediate an end to a war that has destabilised the Gulf and raised prices around the world since the US and Israel launched airstrikes on Iran on Feb 28. [1] [2]

Omani Mediation Proposal for Safe Passage

Oman is mediating with proposals for safe passage including free navigation in its waters. [1] [2] CNN reported on Saturday that Oman made a draft proposal for the strait including free navigation through its southern corridor in Omani territorial waters. [1] The plan called for vessels transiting the northern corridor through Iranian territorial waters to obtain prior approval from Iran although no tolls would be imposed. [1] Oman's state news agency later said that Omani and Iranian negotiators would continue talks at the technical and political levels. [1] [2]

Broader Regional Concerns Including IMEC Corridor

Iran is worried that the rapid advance of the IMEC corridor could offer a viable alternative to trade and energy flows through the Strait of Hormuz while strengthening Israel's regional standing. [3] The IMEC project would provide a stable trade route that bypasses the Strait of Hormuz creating an alternative for global trade and energy transmission. [3] The ambitious plan first launched in September 2023 has moved ahead more strongly in recent months. [3] A major push for the initiative came after the closure of the Strait of Hormuz and the broad global understanding that there is an urgent and critical need to create alternative trade routes that are safer and more resilient for the global economy. [3] The new route is laying the groundwork for massive cross-continental exports of renewable energy including linking electricity and green energy networks between Israel, Greece and Cyprus. [3] Public statements by Israeli ministers in recent months stressing the need to urgently promote Israel's inclusion in IMEC signal to Tehran that Jerusalem does not intend to give up. [3]

What to watch next: Continued technical and political talks between Omani and Iranian negotiators along with further developments on the IMEC corridor that could bypass the Strait of Hormuz.