Skip to content
You can now search across every topic, entity and event.What's new
European Energy Markets
22APR

Rezaei sets Iran's price for Hormuz

3 min read
14:48UTC

Mohsen Rezaei told China's ambassador on 11 August that the Strait of Hormuz reopens only when the United States ends its war and releases Iran's blocked funds. Pakistan and Qatar spent the same day calling the talks advanced.

EconomicDeveloping
Key takeaway

Iran's security council chief raised the price for reopening Hormuz and dismissed the Oman transit track.

Mohsen Rezaei told China's ambassador Zong Piyu in Tehran on Tuesday 11 August that the Strait of Hormuz reopens when the United States ends its war on Iran and its regional allies and releases Iran's blocked funds, and that Tehran has passed further conditions to Washington through intermediaries 1. Rezaei runs the Supreme National Security Council (SNSC), the Iranian body that turns a negotiated text into state policy. He took it over on 9 August . This was his first public word on the strait since.

He also cut the mediators loose. The Iran-Oman transit arrangement "will have no impact" on the reopening decision, he said. That puts him at odds with his own foreign ministry, where Esmaeil Baqaei spent Monday 10 August naming the four areas Muscat and Tehran have agreed and ruling transit fees out . Abbas Araghchi's Hormuz draft has been waiting on Rezaei's council since 5 August and remains unsigned. He has gone beyond the six conditions his predecessor Mohammad Bagher Zolghadr published on 8 August , adding an end to the American naval blockade.

The mediators spent the same day describing a different negotiation. Pakistan's defence minister Khawaja Asif said things are "shaping up in favor of peace" on the strait, and a Qatari foreign ministry spokesperson called the Iran-Oman talks on reopening to some shipping advanced 2. Neither names a text, a date or a mechanism. Rezaei names the council, the conditions and the man who has to meet them.

A charterer reading both accounts cannot price either, so optimism from Islamabad and Doha moves no war-risk rate. Tehran has now said in public, through the office that decides, that the shipping track is not the one that matters.

Deep Analysis

In plain English

Mohsen Rezaei, a senior Iranian security official, told China's ambassador that Iran will not reopen the Strait of Hormuz (the narrow sea passage a fifth of the world's oil travels through) until the US ends its war on Iran and its allies and unfreezes Iran's blocked money. He said a separate set of talks between Iran and Oman about the strait does not affect that decision. On the same day, officials from Pakistan and Qatar, two countries trying to help end the war, both said things were looking hopeful on Hormuz. Neither gave any details, and their comments do not match what Rezaei just said.

Deep Analysis
Root Causes

Iran signed but never ratified the international treaty guaranteeing transit passage through straits, leaving Tehran's closure and reopening claims resting on domestic authority rather than an instrument it can enforce in law. That gap is why the decision can plausibly sit with either the SNSC or the foreign ministry: no treaty obligation forces Iran to recognise one channel as binding.

Rezaei's appointment to the SNSC on 9 August replaced Mohammad Bagher Zolghadr, who moved to an advisory role; a security-council chief with a military rather than diplomatic background, drawn from the IRGC's own command line, is structurally more likely to frame Hormuz as a security instrument than a shipping-lane technicality.

What could happen next?
  • Risk

    Rezaei's rejection of the Iran-Oman track as irrelevant to reopening creates a public contradiction with Pakistani and Qatari mediators describing that same track as advanced, which could stall the mediation both sides say they want.

  • Meaning

    Rezaei's appointment brings a career IRGC commander into the role that decides Hormuz policy, replacing a predecessor now in an advisory capacity, which shifts the decision away from Iran's diplomatic track and toward its security establishment.

First Reported In

Update #169 · The war moved from the air to the water

Mehr News Agency· 12 Aug 2026
Read original
Different Perspectives
Cross-border power traders
Cross-border power traders
The France-Germany day-ahead spread flipped from a EUR 17.20 German premium on 1 August to a EUR 4.15 French premium on 3 August, the same day French curtailment peaked. They cannot yet attribute the flip to curtailment alone, since a like-for-like overnight comparison shows French nuclear output rising while wind fell and demand returned on the weekday step.
EDF
EDF
River-cooling limits took 7.6 GW, 12 per cent of its fleet, offline on 3 August, the highest curtailment since the heatwave began, with an easing forecast to 4.3 GW on 4 August and 3 GW after. It manages the cut as a recurring seasonal constraint, expecting it to lift with river temperature, not repair.
Gasunie
Gasunie
TTF, the Dutch hub it operates, drifted to roughly EUR 55 to 58 per MWh across the window, staying inside its recent range through both the German spark reversal and the French curtailment. It reads a flat hub price as evidence that neither event this window carried enough weight to move the fuel leg on its own.
German gas-fired generators
German gas-fired generators
Record German solar of 18,761 MW on 2 August pushed the clean spark spread to minus 18.48 EUR/MWh, a loss-making day, before it returned to plus 16.20 on 3 August. They now price dispatch against post-solar residual load rather than wind alone, since the sign flipped inside 48 hours on unchanged fuel and carbon costs.
European Commission (DG Energy)
European Commission (DG Energy)
Its implementing-measures register logged transposition notices from only Portugal and Slovakia against Wednesday's Article 94 deadline for Directive (EU) 2024/1788, with 25 states silent. It expects the register to fill only gradually, since filing routinely lags legislating and any infringement track against non-notifying states runs on a slower clock than the deadline itself.
Spain's LNG terminal operators
Spain's LNG terminal operators
Spain's 9,145 GWh terminal inventory is the largest single stock in the EU LNG network, an option value that can reroute cargoes wherever the winter strip pays best rather than a cavern gas obligation tied to a fixed date. That flexibility matters more as Germany's cavern shortfall pushes more of the winter security question onto import infrastructure.