STRAIT OF HORMUZ — Iranian Supreme Leader Mojtaba Khamenei announced in a televised address that Iran would assume new management of the Strait of Hormuz, declaring that foreign navies operating in the waterway would face military consequences. The address came two months after a military confrontation between Iran and the United States, which is now under a ceasefire.

"Today, two months after the largest military deployment and aggression by the world's bullies in the region, and the United States' disgraceful defeat in its plans, a new chapter is unfolding for the Persian Gulf and the strait of Hormuz," Khamenei said.

Khamenei also warned outside powers operating in the waterway. "Foreigners who maliciously covet it from thousands of kilometres away have no place there except at the bottom of its waters," he said.

The Strait of Hormuz is the narrow waterway through which about one-fifth of global oil typically transits. Vessel traffic levels through the strait have been as low as three ships a day compared with 120 to 140 ships in normal conditions, and oil prices have risen above $120 a barrel. Iran has made the strait largely impassable by threatening and attacking tankers and cargo ships, while the United States has imposed sweeping sanctions and a naval blockade since 13 April aimed at cutting off Tehran's oil export revenues. The U.S. says it has stopped 42 ships under the blockade.

Iran's navy chief, Shahram Irani, said Iranian forces were prepared to engage approaching vessels. "If they move any closer, we will take operational action without delay," he said. Irani added that "the Islamic Republic will very soon confront the enemy with a weapon it is deeply afraid of."

Maj. Gen. Mohsen Rezaee, a military adviser to the supreme leader, said Iran would not relinquish control of the waterway. "The siege scenario will fail and Iran will never lose the strait of Hormuz. History will record that the Iranian nation sank the superpower of America in the Persian Gulf and the Sea of Oman. Both the field and diplomacy are moving forward with the coordination of the leader of the revolution and the support of the people," Rezaee said.

Iran's foreign ministry has urged parliament to recognize that plans for the strait being developed with Oman do not require new Iranian legislation, and has advised avoiding the term "tolls" while asserting a pre-existing right to charge fees for services rendered. Iran has also proposed pausing talks with the United States on its nuclear program while negotiating terms for allowing ships to resume passage. Pakistan-mediated talks between the two countries are at an impasse, and the United Arab Emirates has decried Iran's control of the strait as akin to piracy.

U.S. Secretary of State Marco Rubio and UK Foreign Secretary Yvette Cooper held talks in Washington about the strait on Wednesday. The U.S. State Department sent an email to embassies indicating an effort to become involved in European-led plans for oversight of the strait after the conflict ends, and is offering to coordinate diplomacy by reviving and broadening a 12-nation International Maritime Security Construct.