Iran Tightens Grip on Strategic Energy Chokepoint Amid Strait of Hormuz Disruptions

The Strait of Hormuz, a critical energy chokepoint, has become increasingly contested following the US-Israeli war with Iran. In response, Iraq and Pakistan have reached separate agreements with Tehran to facilitate oil and liquefied natural gas (LNG) shipments through the strait.

The arrangements come as maritime traffic through the waterway has sharply curtailed due to disruptions caused by the conflict. Before the fighting, around 3,000 vessels crossed the strait each month, but shipping data indicates that this number has fallen to roughly 5 percent of normal levels since the conflict began.

Iraq, which relies heavily on oil exports through the Strait of Hormuz, has negotiated an arrangement with Tehran to grant safe passage for two Very Large Crude Carriers (VLCCs), each carrying approximately 2 million barrels of oil. Iraqi officials are working to secure approval for additional tanker movements, as the country's oil revenues account for around 95 percent of its government budget.

Pakistan has also reached an understanding with Iran to facilitate LNG supplies, including two tankers carrying Qatari LNG currently en route to Pakistan under this arrangement. The country had been receiving around 10 LNG cargoes per month before the conflict, and maintaining these supplies is crucial for meeting increasing electricity demand during summer months.