Iran says the Strait of Hormuz remains under its control and will not reopen without commitments from the US, while Washington claims total control of the strategic waterway.

Iran Claims Control

Iran and the United States have issued competing claims over control of the Strait of Hormuz, escalating tensions around one of the world's most important energy shipping routes.

Hossein Taeb, the recently appointed head of Iran's Basij paramilitary force, said on Thursday that the strategic waterway remained under the control and management of the Islamic Republic.

His comments came a day after US President Donald Trump said the United States had “total control” of the strait.

Tehran Rejects US Claim

Taeb said Iran continued to operate in the area despite what he described as US efforts to challenge Tehran's regional influence.

Iran's joint military command, Khatam al-Anbiya Central Headquarters, later reinforced the claim, saying vessels could not pass through the Strait of Hormuz without Tehran's permission.

The command dismissed US statements about normal vessel movement through the waterway as false, according to Iranian state media.

The competing statements have raised fresh concerns over shipping and energy supplies in the Gulf.

Vital Global Waterway

The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.

The narrow waterway carries a significant share of global energy shipments. Before the conflict, about one-fifth of the world's oil and liquefied natural gas shipments travelled through the strait.

Any prolonged disruption could therefore affect crude oil supplies, LNG markets, shipping costs and energy prices across global markets.

Asian economies that depend heavily on energy imports could face particular exposure if the disruption continues.

Conflict Disrupted Shipping

The current dispute follows a wider conflict that began with US and Israeli strikes on Iran on February 28.

After the fighting began, Iran effectively closed the Strait of Hormuz. The United States subsequently imposed a naval blockade on Iranian shipping and ports while saying it would protect freedom of navigation for vessels travelling to and from non-Iranian ports.

The opposing positions have created uncertainty for commercial shipping operators using the Gulf.

The situation also places pressure on international energy markets, which remain sensitive to any threat to one of the world's key oil transit routes.

June Ceasefire Unravels

Iran and the United States reached an interim agreement in June that declared a permanent ceasefire and called for a swift return to freedom of navigation in the Gulf.

The arrangement, however, broke down within weeks.

Iran later resumed limited attacks on vessels that it said had violated the terms of the agreement. The United States responded by restarting strikes against Iran's southern provinces.

Washington said those strikes aimed to reduce Tehran's ability to target vessels operating in the Gulf.

Iran Sets Conditions

Iranian officials have now made clear that reopening the strait depends on the other side fulfilling commitments under the June arrangement.

Senior military-political official Rasoul Sanaei-Rad said on Thursday that Iran would not reopen the waterway unless the other side met its obligations.

He also said reopening the strait was not something the United States could accomplish unilaterally.

The statement indicates that Tehran intends to use control over the waterway as part of broader negotiations with Washington.

Warning of Further Conflict

Sanaei-Rad also warned that Iran would respond more aggressively if another conflict breaks out.

He said Iran would adopt a more firm and offensive posture in any future war.

The warning comes amid continuing military and political tensions between Tehran and Washington, with neither side accepting the other's claims over navigation and control of the waterway.

How could this affect petrol and diesel prices in India?

India imports nearly 90 per cent of the crude oil it requires, making it particularly vulnerable to an extended disruption in Middle Eastern supplies.

If tanker traffic falls further, the immediate effect would likely be higher global crude prices, shipping charges and marine-insurance premiums. Indian refiners would then have to pay more to secure and transport crude oil.

The impact could reach Indian consumers through several channels:

• Higher crude costs can increase the price of producing petrol, diesel, aviation turbine fuel and LPG.
• A larger oil-import bill increases India’s demand for US dollars, potentially weakening the rupee.
• A weaker rupee makes every dollar-denominated barrel of imported oil more expensive.
• Costlier diesel raises transportation and agricultural expenses, potentially increasing food prices.
• Higher fuel and freight costs can raise inflation across manufactured and everyday goods.

This does not mean petrol and diesel prices will rise immediately. Retail fuel prices in India also depend on government taxes, oil-company pricing decisions, refinery margins and whether authorities choose to absorb part of the international increase.

However, a prolonged rise in crude prices would make it more difficult to keep domestic rates unchanged.

The Indian rupee closed at ₹95.44 against the US dollar on Thursday. India’s merchandise trade deficit also widened to a six-month high of $31.98 billion in July, partly reflecting pressure from higher oil prices and freight costs.

Oil prices fall—but Hormuz risk remains

Despite the latest US-Iran confrontation, oil prices declined on Thursday because of weaker global-demand forecasts and a sharp increase in US crude inventories. Brent crude was trading below $87 a barrel during the session.

The decline does not mean the Hormuz threat has disappeared. Shipping data showed that vessel crossings—excluding container ships—fell to their lowest level in three weeks on Wednesday.

The US Energy Information Administration expects Hormuz shipments to remain severely restricted through August and recover only gradually. It has forecast Brent crude to average about $85 a barrel during the third quarter of 2026.

For Indian households, the key question is therefore not simply whether Washington or Tehran wins the argument. What matters is whether tankers can move safely and regularly through the strait.

Until that happens, the possibility of higher crude prices, pressure on the rupee and increased petrol, diesel and inflation risks will continue to hang over India.