Rubio warns Iran's Strait of Hormuz threat risks global fallout as US strikes continue

MANILA, PHILIPPINES — U.S. Secretary of State Marco Rubio on Wednesday accused Iran of not honoring the Strait of Hormuz deal, while reiterating that Washington was "committed to diplomacy" in the Middle East.

Speaking at the ASEAN Foreign Ministers' meeting in the Philippines, Rubio said that "the problem we're having right now is that they're not serious about talks. If they're serious, we're serious. If they're not, then we will do what is necessary to protect our interest and also the interest of our allies."

Key Sticking Point: Control of the Strait

Rubio said a key sticking point between Tehran and Washington is that Iran "demands the right" to control traffic in the Strait of Hormuz — a right it does not have under international law.

He also stated that Tehran has not kept its commitments regarding the Strait.

"It's a very fundamental principle about freedom of navigation," Rubio said.

Warning of Dangerous Precedent

"If we create a precedent in the Middle East, where a nation state can decide that they are going to control an international waterway, charge a toll, and if you don't pay them, blow up your ships, we have created a very dangerous precedent, which will repeat itself in other parts of the world, including in this region," Rubio warned.

Rubio appeared to make a veiled reference to China, saying that "of all the regions in the world, the one I don't need to teach about the importance of freedom of navigation in international waterways, it is this region."

Continued U.S. Military Strikes

His comments come as U.S. Central Command hit Iranian targets for an 11th straight night, as it seeks to "continue degrading Iran's ability to threaten commercial shipping in the Strait of Hormuz."

Centcom said it had hit:

• Military operations centers
• Drone storage facilities
• Military logistics infrastructure

The strikes on Iran are "consequences" for Tehran not keeping their word, Rubio said, adding: "If these consequences did not exist, then today we would be living in a world where a significant percentage of the energy supply of this region and 20% of the energy supply of the world is being held hostage by a nation state."

Background: The June Memorandum

The U.S. and Iran signed an interim memorandum of understanding on June 17 that:

• Halted military operations
• Called for the reopening of Hormuz
• Established a 60-day window for negotiating a permanent agreement, including terms covering Iran's nuclear program

However, the document left the future management of the Strait of Hormuz unresolved.

Iran interpreted the text as recognizing a role for Tehran in managing traffic through the strait and potentially charging for maritime services after an initial 60-day period. The U.S. maintained that the waterway must remain open without compulsory Iranian fees or restrictions.

Iran and Oman — which also border the Hormuz Strait — said in a joint June 23 statement that "all arrangements related to the Strait of Hormuz must fully respect the sovereignty and sovereign rights of the two Coastal States of the Strait."

South China Sea Context

The U.S. Navy has in the past conducted "freedom of navigation" operations around disputed islands in the South China Sea, where several Southeast Asian countries have competing claims with China, whose "nine-dash line" claims almost all of the sea as its waters.

That is despite a 2016 ruling by the Permanent Court of Arbitration that said China's claims have no basis under international law. China has refused to recognize that outcome.

Pool | Getty Images News | Getty Images

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.