At the eastern entrance to the Strait of Hormuz, Iran is effectively regulating maritime traffic through a controlled corridor near Larak Island, a strategic position that has altered the dynamics of one of the world’s most vital shipping lanes. Following an agreement reached earlier this week for a temporary ceasefire and the reopening of the strait, only two vessels have passed through along this unconventional route, underscoring Tehran’s continued influence over passage in the area.

The Liberia-flagged tanker Daytona Beach transited the narrow corridor at 6:59 a.m. Coordinated Universal Time (UTC) yesterday, followed by the Greek-owned bulk carrier NJ Earth at 8:44 a.m., according to Marine Traffic, a ship tracking service. These ships avoided the traditional shipping lanes, which have come under Iranian control, signaling a shift from what was previously considered an open waterway to one where passage is effectively monitored and potentially regulated.

Iran’s Islamic Revolutionary Guard Corps (IRGC) operates this system from Larak Island, using it as a checkpoint to visually verify vessels approaching the strait. Shipping experts caution that this level of control is unlikely to lead to a rapid resumption of traffic. Richard Meade, editor-in-chief of the maritime publication Lloyd’s List, noted the current pace of just one or two ships daily reflects the complexity of managing transits under Iranian oversight. “Iran remains in control of the strait and will be approving transits,” he said, emphasizing that volume-based traffic is not yet feasible under the new conditions.

The Strait of Hormuz is bordered by the territorial waters of both Iran and Oman and has historically been treated as an international waterway free of tolls. However, Iran’s current control system diverges from international norms, raising legal concerns. Under the United Nations Convention on the Law of the Sea (UNCLOS), which neither the US nor Iran has ratified, imposing levies on vessels passing through such straits is prohibited. Despite this, there have been reports—though unverified—of payments as high as $2 million made to Iran by shipping operators to secure passage.

While Iran has stated it will permit safe transit for two weeks under coordination with its military, the details of the arrangement remain ambiguous. The Iranian supreme national security council has announced plans to begin discussions with the United States in Islamabad concerning a ten-point proposal. This proposal reportedly covers continued Iranian control over shipping and demands the lifting of sanctions.

Meanwhile, former U.S. President Donald Trump has suggested on social media platforms that the United States might participate in managing the flow through the strait as a joint venture with Iran, citing the potential for significant financial gain. Trump also indicated that the U.S. would maintain a supply presence in the Strait region to facilitate smooth maritime operations.

The regional response appears mixed. An official reportedly indicated plans to allow Iran and Oman to levy fees on transiting vessels, yet Omani transport minister Said bin Hamoud bin Saeed Al Maawali publicly denied any intent to impose tolls.

The current shipping traffic through the Strait of Hormuz remains well below normal levels. Data from maritime analytics firm Kpler shows an average of eight commodity carriers per day from March 1 to April 7—a nearly 95% decline compared to peacetime traffic. This disruption reflects ongoing security concerns and uncertainty over transit terms.

Operators are reportedly preparing to move vessels that have been held in Gulf anchorages but are awaiting clear guidance on transit protocols and security assurances. Insurance coverage remains a critical consideration for shipowners, as threats from Iranian missiles, drones, and remaining attack boats continue to pose risks. The Pentagon has acknowledged that while many Iranian vessels have been neutralized, some small attack craft remain operational, underscoring the fragile nature of the current maritime environment.

Any future increase in traffic likely hinges on establishing a robust, multinational escort system, which experts believe would be necessary to restore confidence among shipping companies and insurers. For now, Iran’s control of the Strait of Hormuz remains a pivotal factor shaping global energy flows and maritime security in the region.