Iran creates new agency to control shipping in Strait of Hormuz while reviewing peace deal with US
Source: AP
Updated 1:52 PM EDT, May 7, 2026
DUBAI, United Arab Emirates (AP) — Iran has created a government agency to vet and tax vessels seeking passage through the crucial Strait of Hormuz, a shipping data company reported Thursday, as Tehran said it was reviewing the latest U.S. proposals for ending the war.
The Iranian effort to formalize control over the channel raised new concerns about international shipping, with hundreds of commercial ships bottled up in the Persian Gulf and unable to reach the open sea. Still, hope that the two-month conflict could soon be over buoyed international markets.
Iranian Foreign Ministry spokesperson Esmail Baghaei said the Islamic Republic was reviewing messages from Pakistan, which is mediating peace negotiations, but Iran “has not yet reached a conclusion, and no response has been given to the U.S. side,” Iranian state TV reported. Meanwhile, U.S. Secretary of State Marco Rubio discussed Middle East peace efforts at the Vatican with Pope Leo XIV, whose opposition to the Iran war has led to open sparring with President Donald Trump.
The Trump administration has sent mixed messages on its strategy to end the war. A tenuous ceasefire and previous declarations that military operations were over have given way to new threats of bombing if Tehran does not accept a deal that allows for resumption of oil and natural gas shipments disrupted by the conflict.
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