Iran creates new agency to control shipping in Strait of Hormuz while reviewing peace deal with US

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.

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.

Trump also suspended an attempt by the U.S. military open a safe passage for commercial ships through the strait, saying the pause would allow more time to reach a peace agreement. An official in Saudi Arabia said Thursday that the kingdom and U.S. ally refused to support Trump's effort to reopen the strait by force.

The ceasefir e between the U.S. and Iran has largely held since April 8. But in-person talks between the two countries hosted by Pakistan last month failed to reach an agreement. The war began Feb. 28, when the U.S. and Israel launched strikes against Iran.

Pakistan says it expects a deal soon

“We expect an agreement sooner rather than later,” Pakistani Foreign Ministry spokesperson Tahir Andrabi said Thursday. “We hope the parties will reach a peaceful and sustainable solution that will contribute not only to peace in our region but to international peace as well.”

But he declined to give a timeline, saying Pakistan would not disclose details of the ongoing diplomatic efforts.

Asked whether Pakistan was expecting any response from Iran later Thursday, Andrabi said: “I will not comment on specifics or the movement of the messages.”

Pakistani Prime Minister Shehbaz Sharif, speaking in televised remarks, said Islamabad remained in “continuous contact with Iran and the United States, day and night, to stop the war and extend the ceasefire.”

Iran creates agency to control passage at Hormuz

Iran established a new government agency to approve transit and collect tolls from shipping in the strait, shipping data firm Lloyd’s List Intelligence said Thursday. The move has raised concerns about eroding the freedom of navigation on which global trade depends.

The agency, called the Persian Gulf Strait Authority, is “positioning itself as the only valid authority to grant permission to ships transiting the strait,” Lloyd’s reported in an online briefing. Lloyd's said the authority had emailed it an application form for ships seeking passage.

Iran has effectively closed the strait, a vital waterway for the shipment of supplies of oil, gas, fertilizer and other petroleum products, while the U.S. is blockading Iranian ports. The disruptions have sent fuel prices skyrocketing and rattled the global economy.

The new Iranian agency formalizes an existing, albeit murky, vetting lane that takes vessels through the strait’s northern waters near the Iranian coastline. Iran controls which ships are allowed to pass and, for at least some vessels, imposes a tax on their cargo.

Maritime law experts say Iran’s demands to vet or tax vessels violate international law. The United Nations Law of the Sea treaty calls for countries to permit peaceful passage through their territorial waters.

Iran's president reports lengthy meeting with new supreme leader

Top Iranian officials have said Supreme Leader Mojtaba Khamenei is playing a key role in overseeing negotiations with the U.S. But he remains in hiding and has not appeared in public since he was wounded early in the war.

Iranian President Masoud Pezeshkian said he met recently for more than two hours with Khamenei. In remarks aired Thursday on Iranian state television, Pezeshkian praised the supreme leader’s “sincere” behavior in what he said was a long in-person meeting.

Khamenei has only released a series of written statements since being named supreme leader in March. He replaced his father, Ayatollah Ali Khamenei, who was killed during the war’s initial strikes.

Trump says Tehran wants to end the war

“We’re dealing with people that want to make a deal very much, and we’ll see whether or not they can make a deal that’s satisfactory to us,” the president insisted Wednesday.

A spokesman for the Iranian Foreign Ministry, Esmaeil Baghaei, told state TV on Wednesday that Tehran was still examining the latest U.S. proposal.

Baghaei said Iran had “strongly rejected” U.S. proposals reported by the news outlet Axios, which said the provisions included a moratorium on Iranian uranium enrichment, lifting of U.S. sanctions, distribution of frozen Iranian funds and opening the strait for ships.

Saudi official says kingdom did not support US effort to reopen strait

Trump did not consult with U.S. ally Saudi Arabia before launching the short-lived effort to force open a shipping passage through the strait, according to a Saudi official who was not authorized to discuss the matter publicly and spoke on condition of anonymity.

“We told them that we are not part of this and that they can’t use our territories and bases for this,” the official said Thursday.

The official said Saudi Arabia sent a message to Iran that the kingdom would not be involved in U.S. attacks related to Trump’s attempt to reopen the strait.

Trump suspended the effort, dubbed Project Freedom, during its second day Tuesday. Only two American-flagged merchant ships are known to have passed through the U.S.-guarded route. The U.S. military said it sank six Iranian small boats threatening civilian ships.

On Thursday, the price of Brent crude oil fell to around $97, down from more than $115 earlier this week.

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McHugh reported from Frankfurt, Germany, and Bynum reported from Savannah, Georgia. Associated Press journalists Elena Becatoros in Athens, Greece; Joshua Boak and Ben Finley in Washington; Samy Magdy and Amir-Hussein Radjy in Cairo; Munir Ahmed in Islamabad, Pakistan; and Nicole Winfield in Vatican City contributed to this report.