Iran has taken control of the Strait of Hormuz, a key channel for 20% of the world's oil supply. Peace talks between the U.S. and Iran are focused on reopening the waterway and a potential toll system. Despite a U.S. bombing campaign, Iran's military remains functional, and the status of its nuclear materials is uncertain. Iran enters high-stakes peace talks in Pakistan this weekend holding more leverage than it has managed to wield at any time during its six-week war: It has taken control over the Strait of Hormuz. The narrow, 100-mile-long waterway is the primary channel through which 20%...