Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
Iran Conflict 2026
3APR

Philippines Cuts Bilateral Hormuz Deal, Bypassing US Posture

3 min read
11:45UTC

The Philippines secured toll-free passage through the Strait of Hormuz on 2 April via a direct call between Foreign Minister Lazaro and Iran's Abbas Araghchi. Manila is the first US ally to negotiate separately with Tehran since the blockade began.

ConflictAssessed
Key takeaway

Manila's bilateral deal is the first formal fracture in US allies' collective stance against Iran's Hormuz toll.

Philippines Foreign Minister Lazaro spoke directly with Iranian Foreign Minister Abbas Araghchi on 2 April, securing toll-free Hormuz passage for Philippine-flagged vessels. Manila becomes the first US treaty ally to negotiate bilaterally with Tehran since the IRGC Larak Island toll system became operational.

The Philippines was among the first countries to declare a national energy emergency as the blockade tightened in late March. With 45 days of fuel reserves and a heavily import-" "dependent energy system, Manila had direct economic pressure " "to act. The bilateral deal solves the Philippines problem. It does not solve the alliance problem.

Iran's parliament voted to codify the Hormuz toll into permanent domestic law, explicitly banning US and Israeli ships. The Philippines deal demonstrates what that law's exemption architecture looks like in practice: Iran selects which states receive access and on what terms. Manila accepted those terms. That is a meaningful concession from a US ally, irrespective of the fuel arithmetic that drove it.

Japan, South Korea, and Taiwan now face identical domestic pressure. Each depends heavily on Gulf energy imports. Each is a US ally. If any follows Manila's precedent, the collective posture Washington has relied on since the blockade began effectively dissolves into a series of bilateral licensing arrangements administered by Tehran.

Deep Analysis

In plain English

The Philippines cut its own side deal with Iran so its ships can pass through the strait of Hormuz without paying Iran's toll. It is the first US ally to do this. If other countries follow, Iran's ability to use the strait as leverage over the whole world weakens, because each country will just negotiate its own quiet arrangement.

Deep Analysis
Root Causes

The Philippines' decision stems from a structural vulnerability that predates the conflict: ASEAN economies are disproportionately dependent on Gulf oil, with limited domestic production and no strategic petroleum reserve adequate to absorb a sustained Hormuz disruption. Manila had no spare buffer.

The secondary cause is the absence of any US mechanism to compensate allies for bearing Hormuz toll costs. Washington demanded solidarity without offering offsetting support. The Philippines simply acted on its interests when the cost exceeded a political threshold.

Escalation

De-escalatory for the Philippines specifically, escalatory for the collective posture. Iran's incentive to extend the conflict increases as more bilateral exemptions legitimise its toll authority. The deal makes a negotiated end to the Hormuz blockade harder because Iran now has demonstrated that individual deals are achievable.

What could happen next?
  • Precedent

    First bilateral Hormuz toll exemption by a US ally; creates a template for Japan, South Korea, Taiwan, and India to follow.

    Immediate · High
  • Consequence

    US leverage over allied shipping policy diminishes with each bilateral deal; the collective pressure architecture fragments from the outside in.

    Short term · High
  • Risk

    Iran's toll evolves from a wartime measure to a permanent licensing framework, effectively privatising passage through an international strait under its unilateral authority.

    Medium term · Medium
  • Opportunity

    The Philippines deal creates a backchannel that could be used for broader indirect diplomacy if Washington chooses to engage it rather than condemn it.

    Short term · Low
First Reported In

Update #57 · Bridge strike kills eight; Army chief fired

Philippines Department of Foreign Affairs· 3 Apr 2026
Read original →
Causes and effects
This Event
Philippines Cuts Bilateral Hormuz Deal, Bypassing US Posture
Manila's deal is the first formal crack in the collective posture Washington has maintained since the Hormuz toll began. Each bilateral exception normalises Iran's authority over passage and weakens US leverage over allied shipping.
Different Perspectives
Wang Yi
Wang Yi
China's foreign minister and Djibouti's issued a joint communique on 21 October saying the war should not reach the Horn of Africa and stressing free navigation through Bab al-Mandeb. The text names neither Iran nor the Houthis, and Djibouti hosts China's only overseas military base, opposite the Yemeni coast.
Ministry of External Affairs
Ministry of External Affairs
India's foreign ministry called the attacks on Saudi civilian and energy sites "unacceptable" on 22 October and said they must stop at once. An Indian died at Dammam, Indians were injured there and at Shaybah, and about 4,000 Umrah pilgrims remain stranded by one MP's count.
Iraq
Iraq
Iraq closed the al-Sheeb crossing with Iran to travellers and trucks from 21 October and said other crossings would close gradually. Unlike September's closure, which ended on a staged timetable, this one has none, and Iran's interior ministry said it received no notice.
Abdel Fattah el-Sisi
Abdel Fattah el-Sisi
Egypt's president said on 21 October that Cairo's support would "defend Saudi territory, and does not include an attack on Yemen". Araghchi warned that Egyptian involvement would further complicate the situation, and Cairo's limit matches the one Ankara set on 8 October against attacking another state's soil.
UK Ministry of Defence
UK Ministry of Defence
The MoD said on 20 October that RAF Typhoons over Saudi Arabia will not strike the Houthis, but extended tanker support to Saudi operations including against Houthi targets in Yemen. The tanker line sets no limit on strikes, so British aircraft may now refuel Saudi jets on bombing runs.
Turkey
Turkey
Ankara sent the Mecca Joint Defence Agreement to parliament around 20 October, and its published text treats an attack on one party as an attack on all. Article 16 brings it into force only on the last ratification, so the 5 October invocation in Riyadh could not yet bind Turkey.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.