Strait of Hormuz: A Case for Regional Stewardship

The Strait of Hormuz is the world's most critical energy corridor, carrying nearly one-fifth of global oil and liquefied natural gas supplies. Any disruption in this narrow waterway sends shockwaves through energy markets, raises shipping and insurance costs, and threatens global economic stability. A disappointing fact is that due to decades of external military involvement, the Strait has remained vulnerable to recurring crises.

Recent diplomatic developments offer an opportunity to rethink its security architecture. Iranian Foreign Minister Abbas Araghchi has called for closer regional cooperation, while Oman has proposed establishing a joint maritime mechanism involving Iran and the Gulf states. Inspired by the Strait of Malacca, the proposal envisages voluntary contributions from users of the waterway to finance navigation safety, environmental protection, search-and-rescue operations, and maritime coordination.

The Malacca model demonstrates that strategic waterways can be managed effectively through cooperation among the littoral states. A similar arrangement in the Gulf could bring together Iran, Oman, Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, Kuwait, and Iraq in a permanent institutional framework dedicated to ensuring safe and uninterrupted navigation.

Such a mechanism would coordinate vessel traffic, strengthen maritime safety, improve emergency response, protect the marine environment, and establish communication channels to prevent misunderstandings from escalating into conflict. More importantly, it would place responsibility in the hands of those with the greatest stake in preserving regional stability.

The economic case is equally compelling. Every Gulf state depends on secure sea lanes for energy exports, trade, and investment. A stable Strait would reduce insurance premiums, lower transportation costs, strengthen investor confidence, and enhance global energy security.

Regional stewardship should not be viewed as excluding the international community. Freedom of navigation is a shared global interest, and countries benefiting from the Strait can continue supporting its operations through voluntary financial contributions, as they do in the Strait of Malacca. Operational responsibility should rest with the littoral states.

The Strait of Hormuz should become a symbol of cooperation rather than confrontation. By establishing a credible regional maritime framework, Gulf nations can safeguard one of the world's most vital trade routes while demonstrating that regional challenges are best addressed through regional leadership, shared responsibility, and sustained diplomatic engagement.

Iran non oil trade reported at US$52 billion in 9 months

The value of Iran’s non-oil trade during the first nine months of the current Iranian calendar year (March-December 2020) was reported at US$52 billion by the Head of Islamic Republic of Iran Customs Administration (IRICA).

The total volume of the country’s non-oil trade was 110 million tons during the period under review, out of that 85.2 million tons were exported commodities and about 25 million tons were imported goods, Informed Mehdi Mir Ashrafi.

The official put the total value of the imports into the country during the said time at US$26.8 billion, while the value of exports was reported to be US$25.1 billion.

According to Mir-Ashrafi, 17.5 million tons of the imported commodities into the country in the period under review were basic goods, accounting for the lion's share of the imports in terms of weight.

Iran's top five non-oil export destinations during this period were China with US$6.4 billion worth of exports, Iraq with US$5.9 billion, the United Arab Emirates (UAE) with over US$3.3 billion, Turkey with US$1.8 billion, and Afghanistan with US$1.7 billion.

The country’s top five sources of imports during this period were China with US$7 billion, the UAE with US$6.3 billion, Turkey with US$3 billion, India with US$1.6 billion and Germany with US$1.6 billion worth of imports.

Some 5.2 million tons of commodities were also transited to other countries through Iran, 10.9 percent less than the figure for the same period in the previous year, Mir-Ashrafi said.

Like all other countries around the world, Iran’s trade with its foreign partners has been affected by the coronavirus pandemic. However, the situation is getting back to normal and the country’s trade is reaching its pre-pandemic levels.