Peloni: When we look on as Iran persists in its need to seize the Strait of Hormuz as its own, we must question what is really taking place here? What is the real reason that Iran is attempting to overturn the norms of the High Seas in what is likely to be a no win scenario for them. Of course, it is reasonable to suggest that the Iranians are set upon a path of complete insanity so as to achieve its ideological achievement of calling forth the long sought rising of the Mahdi, but this conclusion is rendered illogical, as such a rationale would have precluded the crazy Iranians from being present at the negotiating table at all. So, no, it is not their ideology which brought them to open a new revenue stream using open piracy. Instead, the fixed resolve to keep the Strait as their own personal piggy bank cries out to the world that the economically isolated Iranian Islamic Republic is short of the most basic commodity of revenue. No matter how the negotiations go, Iran is signaling that it NEEDS stronger revenue streams than their special blend of oil might afford them in the post war period. Why might that be? While Iran was fighting a war with America and Israel, China sought out an alternate source of energy which they ironically found in the US, and they bought a good bit of it in anticipation of Iran doing something stupid. The consequence of this is that China is not in a great hurry to buy massive amounts from Iran, whose energy is now full priced rather than being priced quite low when it faced US sanctions. Unfortunately for Iran, its old buyer, China, and its potential new buyers in Asia, are both waiting to see what comes from the current negotiations, but even if Iran wins back its old buyer and new buyers in the post-negotiation period, assuming that war is avoided (unlikely IMO), Iran will be competing on the open market for any sales it does receive, and recalling that very few refineries can handle the crude oil sailing out of Kharg Island, the best case scenarios do not provide Iran with as strong a revenue stream as they might anticipate needing to maintain their ranks and to return Iran to its former state of, well, what it was before the war. Meanwhile the malcontents within the Iranian public are still malcontented, making Iran’s need of stabilizing its long decrepit economy all the more important. So Iran needs a new revenue stream beyond the sale of its energy products, which is why it is obsessed with nationalizing the international causeway of the Strait of Hormuz as its solution to financing its way back towards stability.
Iranian officials threaten US, western nations over military presence in Hormuz
| Published: July 5, 2026
Tanker being guided thru Strait of Hormuz. Screengrab via Youtube
Iran’s ambassador to China reaffirmed that his country plans to charge transit fees for vessels traversing the Strait of Hormuz after the end of the 60-day period defined by the Memorandum of Understanding.
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