ConflictClarifier

2026 Iran-Gulf Crisis Tracker
CC
Events Archive
diplomacyMay 5, 2026

The method in Iran’s madness? Closure of Strait of Hormuz echoes a centuries-old Danish play − and is a tragedy for the world order

Summary

More than two months into the war in Iran, navigation through the Strait of Hormuz – the key waterway through which more than a third of the international trade in oil and gas passes – remains perilous and uncertain. Underscoring the uncertainty, on May 3, 2026, the Trump administration launched Project Freedom to help stranded ships through the strait. Yet the next day, at least two ships came under fire from Iran. Iran began blocking the strait to navigation on Feb. 28, after the United States and Israel launched a military campaign against the country. By mid-March, Tehran was demanding tolls of up to US$2 million per vessel. In response, the U.S. imposed what President Donald Trump declared to be a “complete” maritime blockade on Iran and subsequently threatened punishing economic sanctions on any entity that pays Iran’s tolls. Following Iran’s lead, other nations are now contemplating using their own leverage over crucial choke points closer to their shores. Indonesia floated a proposal to charge tolls on vessels transiting the Strait of Malacca, before walking it back. China has also issued warnings against foreign military vessels transiting the Taiwan Strait. These events have prompted commentators to warn of the end of a golden era of navigational freedom that the U.S. has underwritten for more than a century. But as an expert on international law, I know that attempts by nations to weaponize their leverage over crucial geographic choke points at sea and on land are nothing new. In fact, they go back at least six centuries. The Danish roots of sea tolls From the early 15th century until 1857, Denmark required ships passing through the narrow straits connecting the North Sea to the Baltic Sea to stop at the port city of Helsingør — or Elsinore, as Shakespeare styled it in “Hamlet” — and pay a toll before proceeding. At their peak, these Sound Dues generated nearly 10% of Danish national revenues. The Sound Dues rankled the maritime powers of the day, but Denmark could easily enforce them thanks to the narrowness of the Øresund Strait, which is less than 3 miles wide at Helsingør. Ultimately, they were ended not through war but through diplomacy, led in large part by a rising maritime power with a strong interest in open sea-lanes: the United States. Seeking to increase its trade with Prussia, in 1843 the administration of President John Tyler advised Denmark of the United States’ refusal to pay the Sound Dues because they lacked any basis in international law. Rumors swirled that the U.S. was willing to back up its refusal to pay with force. After years of uncertainty, the fate of the Sound Dues was resolved by the Copenhagen Convention of 1857. Denmark agreed to abolish the tolls forever in exchange for a one-time, lump-sum payment from the major trading nations. The principle of free navigation of the world’s oceans has largely prevailed since then, in part as a result of subsequent U.S. efforts to exercise these freedoms against those who would restrict them. How the law developed The Danish settlement reflected a broader body of law – the law of transit – that had been evolving alongside an international system of sovereign states for centuries. Its core principle is that when convenience dictates or necessity requires, a country must allow the people, goods and vessels of other nations to pass through its territory for a journey that begins and ends elsewhere. The principle has deep roots in American and international legal history: Thomas Jefferson invoked it when negotiating with Spain, which then controlled Louisiana, to secure the United States’ right to navigate the Mississippi River. Free transit guarantees have been a feature of every major international order since the Congress of Vienna ended the Napoleonic wars in 1815. Yet in each case, those guarantees have come under pressure as the order that produced them weakened. Before World War I, restrictions on transit rights multiplied across Europe. The League of Nations, a precursor to today’s United Nations, made strengthening transit rights its first priority in the 1920s. But these arrangements fell apart as fascism rose across Europe and Asia and regimes from Nazi Germany to Imperial Japan denounced their international legal obligations. The post-World War II order reaffirmed transit rights – through the law of the sea, trade agreements and the laws governing civil aviation – and for decades they held. The International Court of Justice clarified the governing legal principle for international straits in its very first case, decided in 1949: Any body of water useful to international navigation between two open seas is open to the vessels of all nations. The U.N. Convention on the Law of the Sea, concluded in 1982, reaffirmed this rule in holding that countries may not charge tolls on vessels passing through straits within their waters. Although neither Iran nor the U.S. has ratified the convention, the U.S. accepts its provisions on navigational freedom as binding on all countries. Iran’s levying of tolls in the Strait of Hormuz violates the core legal principle that nations may not exploit advantages of geography to bilk foreigners who need to traverse their land or maritime territory. Yet the American and Israeli military campaign that provoked Iran’s response likewise violates the U.N. Charter’s rules on the use of force. Such issues are not just limited to the Strait of Hormuz. Indeed, trade law, security commitments and the norms against the unilateral redrawing of borders are all under strain. Seen in this larger context, China’s warnings against military passage through the Taiwan Strait and Indonesia’s trial balloon over the Malacca Strait are not isolated provocations. They are symptoms of the same underlying condition: an international order losing the shared commitment that has often made its rules enforceable. In January 2026, Trump told The New York Times that he did not need international law and that his own moral judgment was the only constraint on American foreign policy. Around the same time, Canadian Prime Minister Mark Carney warned that the American-led international order was “fading.” The Strait of Hormuz is where those trend lines are now colliding – to the detriment of billions of people around the world, and to the idea of an international order based on law rather than the naked exercise of power.

Actors involved

USIsraelIranUNRussiaChina

Sources

  • Vivek KrishnamurthyBy Vivek Krishnamurthy

    More than two months into the war in Iran, navigation through the Strait of Hormuz – the key waterway through which more than a third of the international trade in oil and gas passes – remains perilous and uncertain. Underscoring the uncertainty, on May 3, 2026, the Trump adminis

See this event through different lenses

Compare how Western, Iranian, Israeli, Global South, and Pro-Peace perspectives frame this event.

Compare Perspectives

Community Notes

Community Notes

Loading notes...

Related events

diplomacyUnverifiedUSIran
1 source

Key points: Bitcoin diverges from US stocks as Trump says Strait of Hormuz “open” Data from TradingView showed BTC/USD building on the week’s gains as the S&P 500 bounced from 7,696, its lowest level since Aug. 4. BTC/USD four-hour chart. Source: Cointelegraph/TradingView This came after US president Donald Trump posted a map of the closed Strait of Hormuz oil route to Truth Social where it was labeled “new US territory.

” Both the US and Iran lay claim to control of Hormuz, with Trump threatening US ally Oman with military action over its plans to work with Iran on charging tolls to shipping traffic. In a subsequent post, Trump confirmed that further diplomacy with Iran was not on the agenda.

“There are no talks or conversations going on, or scheduled, with the Islamic Republic of Iran. The Naval Blockade remains in full force and effect. The Hormuz Strait is open and operating. All water mines have been removed or detonated,” he wrote. S&P 500 one-day chart.

Source: Cointelegraph/TradingView As on Monday, oil avoided major volatility, with WTI crude down 1% at the time of writing at $84 per barrel. US government bonds continued to show strain, with the 30-year yield hitting 5.34%, its highest since January 2007.

“Bond prices are sending warnings,” BNY Mellon analyst Geoff Yu wrote in a research note quoted by the New York Times. Yu said that the surge came as “investors demand more compensation for inflation risk,” while also attributing the upside to government borrowing.

US 30-year bond yields one-month chart. Source: Cointelegraph/TradingView BTC price faces crunch rebound test Updating X followers on BTC/USD, trader and analyst Aksel Kibar eyed the culmination of a potential reverse head-and-shoulders pattern at $62,300.

Related: Bitcoin price spike to $64.5K was ‘low-volume liquidity trap’: Analysis “If $BTCUSD is going to rebound, it has to come from here,” he argued on Monday. Kibar offered a $53,000 target in the event of the head-and-shoulders structure failing, with $76,000 a potential upside target should the rebound sustain.

BTC/USD one-day chart. Source: Aksel Kibar on X.com Previously, Cointelegraph reported that underwater investors were contributing to Bitcoin’s inability to break higher. Its rebound to $64,500 also stopped short of an overhead trend line, the 50-month exponential moving average (EMA).

This moving average is now in place as resistance at $65,827.

Location: Strait of Hormuz
diplomacyUnverifiedUSIran
1 source

Trump says no talks underway with Iran, Hormuz blockade remains in place US president says no discussions are taking place or planned with Tehran and reiterates that the naval blockade of the Strait of Hormuz remains fully operational Washington: US President Donald Trump said on Tuesday that no talks are taking place with Iran and that no discussions are currently scheduled between the two countries.

In a post on his Truth Social platform, Trump also said the naval blockade of the Strait of Hormuz remains "in full force and effect." The president did not provide further details regarding US policy towards Iran or any potential future diplomatic engagement.

Trump's comments come amid continued tensions between Washington and Tehran and renewed focus on security and navigation through the Strait of Hormuz, one of the world's most important oil shipping routes.

Location: Tehran
diplomacyUnverifiedUSIran
1 source

Iranian Foreign Minister Abbas Araghchi said Tuesday that Iran had “won both the war and diplomacy,” claiming those who initially sought Tehran’s “unconditional surrender” later sought negotiations. Speaking at an event, Araghchi said Iran resisted for days against what he described as “the world’s largest apparent military,” alongside another army claiming military power and with the support of nearly all Western countries and some other states inside and outside the region, according to the Tasnim news agency.

“Those who were seeking unconditional surrender, shortly after the war began, begged for negotiations,” Araghchi said. He claimed Tehran initially rejected a ceasefire and continued fighting until reaching a point where the other side accepted a ceasefire and negotiations “on Iran’s terms.

” “We fought with strength, and we negotiated with strength,” he said, adding that many foreign ministers had told him: “You won both the war and diplomacy.” Araghchi’s remarks came after US President Donald Trump called on Iran on Monday to give up and “raise the white flag.

Location: Tehran
diplomacyUnverifiedUSIran
1 source

- Iran demands US lift sanctions and return frozen assets to reopen Strait of Hormuz - Iran's Parliament Speaker warns closure of Strait continues until US ends military threats - Around 20% of global oil supply passes through the Strait, impacting energy security Iran has warned that the Strait of Hormuz will remain closed until the US meets a set of conditions, including the release of frozen Iranian assets, an end to oil sanctions and what Tehran describes as a US blockade and military threats.

Al-Arabiya English reported that Iran's Parliament Speaker and top negotiator Mohammad Bagher Ghalibaf said the Trump administration must meet the conditions before Tehran considers reopening the strategic waterway. “Until the Trump regime removes the blockade, ends the wars across the region, returns Iran's stolen assets, lifts the oil sanctions, and ceases its military threats, the Strait of Hormuz will remain closed,” Ghalibaf said.

Until the Trump regime removes the blockade, ends the wars across the region, returns Iran's stolen assets, lifts the oil sanctions, and ceases its military threats, the Strait of Hormuz will remain closed. pic.twitter.com/fl2RrKnT1R— Seyed Mohammad Marandi (@s_m_marandi) August 18, 2026 Ghalibaf also warned that Iran was prepared to respond more forcefully depending on the actions of its adversaries.

ALSO READ: 'We Control Hormuz': Trump To Declare Strait As US Territory? Here's What President Says The comments add a new condition to an already fragile diplomatic environment, with the Strait of Hormuz at the centre of concerns over global energy supplies.

Around one-fifth of global oil supply typically passes through the waterway, making any prolonged disruption a major risk for crude markets, shipping and energy security. Earlier, Press TV reported that Ghalibaf is scheduled to travel to Baghdad on Wednesday at the head of a high-level Iranian delegation for discussions with Iraqi leaders.

The talks are expected to cover regional developments and bilateral cooperation, including border security, counterterrorism, economic ties and implementation of existing agreements. Iraqi media have also reported that the agenda could include a proposal concerning Iraqi oil exports through the Strait of Hormuz.

The visit comes as regional governments grapple with the implications of continued disruption in one of the world's most important energy corridors. ALSO READ: Hormuz Tensions: Another Ship Hit By Unknown Projectile, Says UKMTO Centre The security situation in the waterway has also remained tense.

The UK's Maritime Trade Operations agency, or UKMTO, said a vessel reported being struck by an unknown projectile while conducting an outbound transit of the Strait of Hormuz. “The Company Security Officer has reported that the vessel was struck by an unknown projectile while conducting an outbound transit of the Strait of Hormuz,” UKMTO said.

The impact damaged the vessel's engine room and resulted in a crew casualty, the agency said. The remaining crew was being assisted by the Omani coastguard. Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.

Location: Tehran