Iran rejects US claim of open southern route through Strait of Hormuz
The direct pushback against US Central Command’s account marks a sharper escalation in rhetoric than the operational, implementation-focused tone that has characterised recent Iran-Oman talks, and could unsettle the diplomatic momentum the market had been pricing in since Tuesday’s rally. Iran’s explicit threat to continue striking vessels on the southern route, combined with its insistence that only its own designated passage is safe, cuts directly against the emerging Iran-Oman framework in which Iran would manage inbound traffic while Oman handles outbound flows, raising questions about how compatible that plan is with Tehran’s stated position. Given oil had already priced in a meaningful de-escalation premium following the CENTCOM assurance and reports of near-agreement between Iran and Oman, this statement could see some of that premium unwind if traders read it as a genuine hardening of Iran’s stance rather than posturing ahead of finalising deal terms. The market will likely look for follow-up signals from Oman or the US on whether the comments derail the broader negotiating track.
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Also, report of attack on Jebel Ali Industrial Area, Dubai, UAE.
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Earlier:
- Israeli official says Trump wants Iran deal 'at any cost’, report says
- Oil update: Iran and Oman said to have agreed broad outlines of strait reopening deal (Iran dispoutes agreement is close)
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Iran’s blunt rejection of Washington’s safe passage claims threatens to unsettle the diplomatic progress markets had been pricing into oil this week.
Summary:
- Iran has directly rejected a US Central Command claim that the southern route through the Strait of Hormuz is free and open, according to Fars
- CENTCOM had said US forces assisted more than 1,000 vessels in successfully transiting the strait over the past three months
- Iran says it has repeatedly struck vessels using the southern route in recent months
- Tehran reaffirms that the only safe transit route through the strait is the one it has designated, warning that vessels using any other route risk being struck
- Iran states it will not open the strait as the US wants, and that all vessels should follow its designated route rather than the southern route
Iran has issued a direct rejection of claims by US Central Command that the southern route through the Strait of Hormuz remains free and open to commercial shipping, according to Iranian outlet Fars. CENTCOM had said US forces assisted more than 1,000 vessels in successfully transiting the strait over the past three months, an assurance that had contributed to easing sentiment around shipping risk in the waterway. Iran disputed that account, saying it has repeatedly struck vessels using the southern route in recent months and framing the US claim as inaccurate.
Tehran went further, reaffirming that it considers only its own designated passage through the strait to be a safe route for transit. Iran warned that any vessel attempting to use an alternative route, including the southern passage referenced by CENTCOM, risks being struck, stating plainly that transiting any route other than the one Iran has designated will cause serious damage to those vessels. The statement adds that Iran will not open the strait in the manner Washington has been pushing for, and that all vessels should follow Iran’s designated route rather than the southern option.
The comments come at a delicate moment in the broader diplomatic process around the strait. Reporting earlier this week suggested Iran and Oman had largely agreed the outlines of a plan to reopen the waterway, with Iran managing inbound traffic through the channel nearest its coast and Oman handling outbound traffic on its side, alongside a proposed service fee to be split between the two countries. Separately, Iran has also been reported to be weighing a voluntary fund that would see European and Gulf states contribute toward the cost of managing navigation and safety services in the strait. Those developments, together with comments from US officials suggesting a deal could be close, had helped drive a sharp fall in oil prices earlier in the week as traders priced in a reduced risk of prolonged disruption.
Wednesday’s statement from Tehran introduces a more combative tone that sits awkwardly alongside that emerging framework, particularly given its explicit rejection of the southern route that CENTCOM had described as functioning safely. Whether the comments represent a genuine hardening of Iran’s negotiating position or a rhetorical device aimed at reinforcing its terms ahead of finalising the Iran-Oman arrangement remains unclear. Markets will likely look to see whether Oman, the US or other parties involved in the talks respond, and whether the broader diplomatic track continues to progress despite the sharper language from Tehran.
This article was written by Eamonn Sheridan at investinglive.com.