Iran plans managed shipping route

Iran is preparing to replace the old open-transit model in the Strait of Hormuz with a managed system run on its terms. Ebrahim Azizi, who heads the Iranian parliament’s national security and foreign policy committee, said on May 16 that Tehran had prepared a “professional mechanism” to direct shipping through a designated route and would collect fees for “specialised services” under that system. He said only commercial vessels and parties “cooperating with Iran” would benefit, and said the route would stay closed to operators linked to what he called the “freedom project.” The proposal matters because the strait is not functioning as it did before the 2026 war. The House of Commons Library said on April 24 that, although a conditional ceasefire had been extended while talks continue, “almost no shipping” was using the passage and it remained effectively closed. The same briefing said about 20% of global petroleum and 20% of liquefied natural gas normally move through the strait, and that pre-conflict traffic of roughly 3,000 vessels a month had fallen to about 5% of that level. (wionews.com) ### What is Iran actually proposing? Azizi’s description points to three elements: a designated route, access limited to vessels and parties Tehran considers cooperative, and fees tied to services provided under the mechanism. He framed the plan as an exercise of Iranian sovereignty and as a measure to guarantee international trade security. The detailed rules have not yet been published. (commonslibrary.parliament.uk) The House of Commons Library said Iran had already indicated after the February strikes that ships from “non-hostile” states could use the strait, and that some vessels from China, Iraq and Pakistan had continued to pass after diplomatic arrangements with Tehran. The library also said Iran was reportedly applying tolls and had argued its control of the strait should continue after the conflict. (wionews.com) ### Why is the strait still effectively shut if there is a ceasefire? The April 24 parliamentary briefing said a conditional ceasefire had been extended until talks conclude, but shipping companies remained hesitant because of threats from drones, mines and small craft, as well as insurance costs. It also said Iran’s naval strength had been reduced, but the security risk to merchant traffic had not disappeared. (commonslibrary.parliament.uk) A separate House of Commons Library paper said the ceasefire was first arranged on April 8 and that Pakistan was mediating U.S.-Iran contacts. That briefing listed freedom of navigation through the Strait of Hormuz among the issues under discussion, alongside Iran’s nuclear and ballistic programs, reconstruction and sanctions. ### Who is pushing back on the new arrangement? (commonslibrary.parliament.uk) Parvathaneni Harish, India’s permanent representative to the United Nations, said on May 17 that “targeting of commercial shipping, endangering civilian crew and impeding freedom of navigation in the Strait of Hormuz, are unacceptable.” He made the remarks at a U.N. Economic and Social Council meeting on safeguarding energy and supply flows, linking the maritime disruption to a broader energy and fertilizer shock. (commonslibrary.parliament.uk) India’s intervention does not by itself change passage rules, but it puts a named major importer on record against restrictions on commercial navigation. That matters because countries dependent on Gulf energy flows are now responding in diplomatic forums as well as through bilateral talks with Tehran. This is an inference based on Harish’s statement and the continuing negotiations described by the House of Commons Library. (moneycontrol.com) ### Where do the negotiations stand? Abbas Araghchi, Iran’s foreign minister, said on May 16 that Tehran had received messages indicating the Trump administration was open to continuing talks aimed at ending the war, according to WION’s report from New Delhi after the BRICS foreign ministers’ meeting. He said earlier U.S. comments rejecting Iran’s response had come “a few days ago,” referring to remarks by President Donald Trump. (moneycontrol.com) Bloomberg reported on May 11 that Washington and Tehran remained far apart on a framework to end the war and reopen the strait. The House of Commons Library has also said the talks involve European states because the earlier diplomacy followed the October 2025 triggering of snapback sanctions by Britain, France and Germany under the 2015 nuclear deal. (wionews.com) ### What should readers watch next? The next concrete step is the publication of the route rules Azizi said would be “unveiled soon.” Until Tehran releases the mechanics — which ships qualify, what services are mandatory, how fees are set, and how passage is enforced — shipowners, insurers and cargo buyers will still be operating with political risk rather than a settled navigation regime. (bloomberg.com) Pakistan-mediated U.S.-Iran talks and parallel diplomacy involving European governments remain the formal channels tied to reopening the waterway. The House of Commons Library said the ceasefire had been extended until those talks conclude, making the next negotiating round and Iran’s promised route announcement the two immediate milestones to watch. (commonslibrary.parliament.uk) (wionews.com)