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Iran rejects US offer on frozen funds, insists on Strait of Hormuz control

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The US proposed partially releasing Iran's frozen assets to normalize navigation in the Strait of Hormuz, but Iran maintains its control and right to levy tolls.
  • Iran's Deputy Foreign Minister stated the Strait is under Iranian command, and its military warned of strong responses to violations of approved shipping lanes.
  • European nations are divided, with some accepting the possibility of transit fees while others, like Bahrain, insist on free passage as a matter of international law.

The United States has offered to release a portion of Iran's frozen overseas assets, estimated at $100 billion, to encourage the normalization of passage through the Strait of Hormuz. However, Iran remains firm in its assertions of control over the vital waterway and its right to impose transit fees.

The Strait of Hormuz is under Iranian command, not American control.

— Kazem GharibabadiIran's Deputy Foreign Minister stating the country's position on control of the Strait of Hormuz.

US Special Envoy Steve Witkoff and Jared Kushner met with mediators in Doha, Qatar, to discuss the issue. The US proposal includes releasing some of the frozen funds, including $6 billion held in Qatar, contingent on Iran abandoning its claims of control and toll demands in the Strait. The negotiations, however, have been delayed due to Iran's hardline stance and were temporarily suspended for the funeral of Ayatollah Ali Khamenei, Iran's former Supreme Leader, who died in a US-Israeli airstrike in February. The talks are expected to resume after the funeral.

All oil tankers must use routes approved by Iran, and any violation will face immediate and forceful response.

— Iranian Joint Military CommandA warning issued by Iran's military regarding navigation in the Strait of Hormuz.

Despite the US offer, Iran shows no signs of backing down. Iran's Deputy Foreign Minister, Kazem Gharibabadi, declared that the Strait of Hormuz is under Iranian command, not American control. The Iranian joint military command has also warned all oil tankers to use routes approved by Iran, threatening immediate and forceful responses to any violations.

Ships paying certain maritime service fees to Iran and Oman might become unavoidable.

— Unnamed European and Gulf Arab officialsPrivate acknowledgment of potential transit fees in the Strait of Hormuz.

Western nations appear divided on the issue. Some major European countries and Gulf Arab officials have privately acknowledged that charging ships certain maritime service fees to Iran and Oman might become unavoidable. However, European nations have drawn a line, stating that any fees should not discriminate based on ship nationality. Gulf states show varying degrees of engagement, with Bahrain officially opposing any negotiation over free passage, while Oman, Saudi Arabia, the UAE, Qatar, and Kuwait have either declined to comment or offered no specific statements.

Free and unimpeded passage through the Strait is a matter of international law, not a subject for negotiation.

— Bahrain GovernmentBahrain's official stance against negotiating passage rights in the Strait of Hormuz.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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