Iran Controls Hormuz Transit Deals
Analysis based on 29 articles · First reported May 12, 2026 · Last updated May 14, 2026
The deals between Iraq, Pakistan, and Iran for energy transit through the Strait of Hormuz signal a shift in Iran's control over the waterway, potentially normalizing its oversight. This development, amidst the US-Israeli war with Iran, has already caused Brent Crude prices to surge over 50% and Liquefied natural gas prices to jump 35-50%, indicating continued volatility and higher energy costs for global markets, especially in Asia.
Iraq and Pakistan have struck separate deals with Iran to secure the passage of oil and liquefied natural gas (LNG) shipments through the Strait of Hormuz. This development highlights Iran's evolving strategy from blocking the strait to controlling access, effectively formalizing its grip on the vital waterway. The US-Israeli war with Iran has severely disrupted energy exports from the Gulf, leading to a significant reduction in shipping traffic through the Strait of Hormuz and causing Brent Crude and LNG prices to surge. Iraq secured safe passage for two crude carriers, while Pakistan arranged for Qatari LNG shipments. Neither Iraq nor Pakistan made direct payments to Iran or the Islamic Revolutionary Guard Corps (IRGC) for these transits. Iran is now requiring detailed documentation for each tanker to facilitate passage, and other countries are reportedly exploring similar arrangements as energy costs and supply disruptions continue to weigh heavily on global markets.
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