Agreement has been signed, but the strait remains closed: Why is Iran still holding onto the Strait of Hormuz after the ceasefire?

Although the ceasefire agreement between the United States and Iran went into effect on April 8th, maritime traffic crossing the Strait of Hormuz - an important channel for oil, natural gas, and other bulk commodity exports in the Persian Gulf region - continues to be severely restricted by Iran. The 14-day ceasefire agreement is said to be conditional on Iran lifting the blockade on the Strait of Hormuz, but there has not been a significant increase in shipping activities yet. On April 8th and the morning of April 9th, only a few ships were observed leaving the Persian Gulf. Normally, around 135 vessels pass through the strait each day. Iran has stated that the strait is open, but passage requires coordination with its military and adherence to strict designated routes. Iran continues to maintain control over this waterway, causing ship owners and crews to be cautious about attempting passage, and the global oil supply remains tense. Why has the ceasefire not led to the reopening of the Strait of Hormuz? Since the United States and Israel launched a war against Iran on February 28th, Iran has claimed control over the Strait of Hormuz and effectively blocked most commercial shipping. Iran has occasionally attacked ships in the Persian Gulf and surrounding waters, and may have laid mines in the Strait of Hormuz. Iran allows some vessels to pass along routes close to its coastline, usually after negotiations for safe passage and sometimes requiring payment of up to $2 million. Meanwhile, Iran continues to transport its own oil through the strait, keeping its shipping volumes close to pre-war levels. Ship owners state that despite the ceasefire being in effect, these conditions have not significantly changed. Iran announced on April 8th that ships still need its permission to pass through the corridor. Iran stated that ships will be restricted to two narrow routes near its coastline to avoid anti-ship mines reportedly placed near the southern conventional shipping lanes of the strait. Most ship owners are still unwilling to risk the safety of their personnel, cargo, and vessels. Jennifer Pak, an adjunct professor at the University of Western Australia's Defence and Security Studies, stated, "Global shipping flows will not return to normal within 24 hours. Ship owners, insurers, and crews need to believe that the risk has indeed diminished, not just been paused." Why is the Strait of Hormuz important? The Strait of Hormuz lies between Iran on the north and the United Arab Emirates and Oman on the south, connecting the Persian Gulf to the Indian Ocean. It is approximately 100 miles (161 kilometers) long, with a width of about 24 miles at its narrowest point. The two-way lanes are only about 2 miles wide each. The strait is a key passage for the global oil market, handling about a quarter of global seaborne oil trade. Saudi Arabia, Iraq, Iran, Kuwait, Bahrain, Qatar, and the UAE all transport oil through the Strait of Hormuz, with most of the goods heading to Asia. Gulf countries also have numerous refineries producing diesel, naphtha (used for making plastics and gasoline), and other oil products, exporting them globally through this strait. Commercial vessels passing through the Strait of Hormuz Aside from energy, the Strait of Hormuz is also a crucial bottleneck for products like aluminum, fertilizers, and even helium, which is used in semiconductor production. What conditions are needed to reopen the Strait of Hormuz? Some ship owners may be willing to negotiate passage with Iranian authorities. Iran has previously allowed ships from countries like Pakistan and Malaysia to pass through the strait, and Thailand is seeking passage permits for nine ships stuck in the Persian Gulf. Reopening the Strait of Hormuz to international shipping would require ship owners to trust that their crew and vessels are safe. This may also involve Iran rescinding the requirement for ships to pass through its waters and pay passage fees. Additionally, if ships are to resume using the traditional southern route, ship owners and crews would need assurance that this route is free of mine threats. Even if these conditions are met, the sheer number of ships waiting for passage through the strait in both directions would pose challenges. Without a traffic management system in place, some form of passage scheduling will be required. Both the traditional southern route and the newly designated northern route by Iran have specified traffic separation lanes, which should help reduce collision risks. Does Iran have the right to control the Strait of Hormuz? Iran has indicated its intention to continue controlling passage through the Strait of Hormuz even after the war ends and to monetize this leverage. A bill reportedly under consideration in parliament would codify Iran's sovereignty over the strait into national law and formally establish a system for charging passage fees for ships. According to the United Nations Convention on the Law of the Sea, countries can exercise sovereignty over waters up to 12 nautical miles from their coastlines, known as territorial seas. The Strait of Hormuz falls within Iran and Oman's territorial waters. However, countries must allow foreign ships innocent passage through their territorial seas and must not impede "innocent passage" or "transit passage" through international straits. The treaty also prohibits countries from charging fees solely for foreign ships passing through their territorial seas. Although Iran signed the UN Convention on the Law of the Sea in 1982, its parliament has never ratified the treaty. The head of the International Maritime Organization, the leading global maritime organization, stated on April 9th that any effort by Iran to permanently implement a toll system for passage through the Strait of Hormuz is unacceptable and would set a dangerous precedent.