On July 7, three cargo ships were struck by drones in the Strait of Hormuz, a narrow waterway between Iran and Oman through which much of the world's oil passes. One of the ships was a Qatari tanker carrying liquefied natural gas. Qatar, which has been trying to broker peace between the United States and Iran, immediately blamed Iran for the attacks and said Tehran would be held legally responsible The Guardian.

The Qatari ship, the Al Rekayyat, was hit near the Omani coast as it headed out of the strait. The crew sent an emergency signal: "we're being hit by a drone top of port side near engine room" The Guardian. A Saudi-flagged tanker carrying crude oil was also damaged in the same area Reuters. This is the first time a ship flagged by Qatar has been attacked since the US-Iran conflict began on February 28.

The timing carries extra weight. The strikes happened as large crowds in Iran were mourning the country's slain ayatollah. Iran said it would not return to peace talks unless the US stopped military operations first Reuters.

The Real Dispute: Who Controls the Strait?

Behind these attacks lies a question that could reshape global shipping: who gets to decide how vessels move through the Strait of Hormuz and what they pay to do so?

Iran wants to charge all ships a fee for passing through. Officials in Tehran say these charges would pay for "security and safe passage" — similar to how pilots guide ships through narrow waterways in the English Channel The Guardian.

Oman has proposed a different approach: a new shipping route that follows the Omani coast instead. This corridor would allow ships to avoid the dispute entirely. But Iran opposed this plan, preferring instead to keep control and collect fees The Guardian.

Iran also rejected proposals from France and Britain to secure the southern route along Oman's shore and clear away sea mines The Guardian. Instead, Tehran points to an agreement it made with the US in which Iran claims the right to manage how the strait reopens to traffic. According to Iran, the US is breaking that deal by trying to create alternative shipping routes The Guardian.

This dispute hinges on a fundamental principle. Western nations and Gulf countries have long maintained that the Strait of Hormuz is an international waterway — a passageway that belongs to no one country and cannot be controlled or taxed by any single nation. Iran's demand to collect fees directly contradicts that view. Oman's proposed coastal route was designed as a way around this stalemate, which explains why Iran rejected it. For Tehran, accepting that route would mean giving up its claim to control and profit from the waterway.

A Truce That Didn't Hold

Just weeks earlier, there was hope for calm. On June 27, Reuters reported that Iran and the US had agreed to stop attacking each other and return to talks Reuters. The July 7 strikes suggest that agreement has already broken down.

Qatar's role in all this has grown more precarious. The country has spent the war trying to mediate between Washington and Tehran. But Qatar also exports large amounts of liquefied natural gas — and much of that shipment must travel through the same Strait of Hormuz where the attacks are happening. Qatar has been progressively harder in its statements about Iranian actions since the war began. In March, Qatar called Iranian attacks a "dangerous escalation." By late April, Qatar warned that closing the strait would harm energy, food, and supply chains worldwide — yet it continued to push for mediation MOFA. By May, more than ten tankers filled with cargo were stuck inside the strait, and Qatar said the outcome of ongoing talks remained unpredictable MOFA.

The Chilling Effect on Shipping

The effect on shipping traffic has been visible. Merchants and ship captains have become extremely cautious about the route. Data from tracking systems shows that of 19 vessels passing through the strait on a recent Saturday, only one clearly advertised its journey along the Omani coast. Most of the traffic still moving through is doing so with its location signals turned off or hidden — likely a deliberate attempt to avoid becoming a target Fortune.

The broader context here is worrying for global stability. The Strait of Hormuz is not some distant waterway. About one-third of all oil traded by sea passes through it. A prolonged dispute over who controls it, combined with disagreement over routes and fees, threatens to lock the waterway into a state of uncertainty. Iran has said it wants normal shipping to resume within 30 days under the terms of its agreement with the US. But that window looks increasingly difficult to meet given the competing claims about routing and fees.

For Qatar, the position is especially difficult. It sits caught between two sides it is trying to bring together while also needing those waters safe for its own economic lifeline.