Traffic through the Strait of Hormuz, the key waterway through which about 20% of the global energy passes, climbed to the highest level since the early days of the war in Iran, according to a new report.
Bloomberg detailed that 21 ships went through the waterway during the weekend as governments negotiate passage with Tehran, strengthening its grip of the strait.
However, the outlet noted, the figure is still a fraction of what it was before the war, when about 135 vessels were transiting every day. "Passage is still at Iran's mercy and the situation could change at any time if the conflict escalates," Muyu Xu, a senior crude oil analyst at Kpler Ltd. told Bloomberg.
Recent U.S. intelligence reports claimed that Iran is unlikely to give up control of the Strait of Hormuz, as it believes that it is the only real leverage the country has over the U.S.
Moreover, Iran has said it will seek to control as a result of the ongoing war. "The Hormuz Strait regime will no longer be as it was in the past. The government is determined to turn the achievements on the ground into stable economic and security benefits for the country," said Iranian Vice President Mohamed Reza Aref in late March.
In fact, a report noted that Tehran has already charged ship operators up to $2 million to go through, seeking $1 per barrel of oil transported as a fee.
Tehran has vowed to maintain control of the waterway even after the war ends, saying fees would be paid as reparations for the cost of the war.
The war continues in the meantime and approaches the deadline given by President Donald Trump for Tehran to reach a deal with the U.S.
Trump renewed his threats on Monday afternoon, telling press "we have a plan, because of the power of our military, where every bridge in Iran will be decimated by 12 o'clock tomorrow night, where every power plant in Iran will be out of business — burning, exploding, and never to be used again."
"It will take them 100 years to rebuild right now, if we left today, it would take them 20 years to rebuild their country, and it would never be as good as it was. And the only way they're going to be able to rebuild their country is to utilize the genius of the United States of America," Trump added.
So far Iran has rejected all proposals. On Monday it presented one of its own with 10 clauses, including an end to conflicts in the region, protocol for safe passage through the Strait of Hormuz, the lifting of sanctions and reconstruction. Trump rejected that proposal as well.
