Iran says control of Strait of Hormuz could double oil revenue

Thursday 14 May 2026 - 10:58

By: Dakir Madiha

Iran says control of Strait of Hormuz could double oil revenue

Iran has claimed that tighter control over the Strait of Hormuz could generate economic returns capable of doubling its oil revenue, according to statements attributed to a senior military official. The assessment comes as tensions remain high between Iran, the United States, and Israel, with maritime security in one of the world’s most critical energy corridors increasingly central to regional strategy.

The Strait of Hormuz serves as a key transit route for global crude shipments, with around one fifth of the world’s oil passing through the waterway. Iranian officials argue that leveraging its strategic position could significantly increase state income. Estimates cited by analysts place Iran’s annual oil sales at roughly 30 billion dollars, suggesting that expanded control over the strait could translate into tens of billions in additional economic leverage.

Military oversight of the strait is divided between two branches of Iran’s armed forces. The western section falls under the control of the Islamic Revolutionary Guard Corps navy, while the eastern section is managed by the regular navy. Iranian forces have also expanded their operational definition of the waterway, extending it far beyond traditional maritime boundaries, a move that signals a more assertive security posture in the region.

Authorities have also introduced a new administrative framework requiring vessels to obtain prior authorization before transit. Shipping companies must submit ownership documentation, insurance details, crew information, and planned routes, alongside payment of transit fees. Iranian officials present the system as a mechanism to formalize sovereignty over the passage, while critics argue it conflicts with established international maritime law guaranteeing free passage. The United States has warned that payments linked to such fees could expose operators to sanctions, further complicating already fragile trade routes.

The dispute unfolds against a backdrop of wider geopolitical confrontation, with Iran positioning control of the strait as both an economic asset and a strategic deterrent. As pressure mounts in the Gulf region, the waterway remains a critical chokepoint for global energy markets and a focal point for competing claims over maritime authority.