diff --git a/tests/qemu-iotests/iotests.py b/tests/qemu-iotests/iotests.py
index cc4bbbcf7b..c382c527c8 100644
--- a/tests/qemu-iotests/iotests.py
+++ b/tests/qemu-iotests/iotests.py
@@ -168,9 +168,13 @@ def qemu_img_create_prepare_args(args: List[str]) -> List[str]:
     args = args[1:]
 
     p = argparse.ArgumentParser(allow_abbrev=False)
+    # -o option may be specified several times
+    p.add_argument('-o', action='append', default=[])
     p.add_argument('-f')
     parsed, remaining = p.parse_known_args(args)
 
+    opts_list = parsed.o
+
     result = ['create']
     if parsed.f is not None:
         result += ['-f', parsed.f]
@@ -179,8 +183,18 @@ def qemu_img_create_prepare_args(args: List[str]) -> List[str]:
     # like extended_l2 or compression_type for qcow2. Test may want to create
     # additional images in other formats that doesn't support these options.
     # So, use IMGOPTS only for images created in imgfmt format.
-    if parsed.f == imgfmt and 'IMGOPTS' in os.environ:
-        result += ['-o', os.environ['IMGOPTS']]
+    imgopts = os.environ.get('IMGOPTS')
+    if imgopts and parsed.f == imgfmt:
+        opts_list.insert(0, imgopts)
+
+    # default luks support
+    if parsed.f == 'luks' and \
+            all('key-secret' not in opts for opts in opts_list):
+        result += ['--object', luks_default_secret_object]
+        opts_list.append(luks_default_key_secret_opt)
+
+    for opts in opts_list:
+        result += ['-o', opts]
 
     result += remaining
 
@@ -211,23 +225,7 @@ def ordered_qmp(qmsg, conv_keys=True):
     return qmsg
 
 def qemu_img_create(*args):
-    args = list(args)
-
-    # default luks support
-    if '-f' in args and args[args.index('-f') + 1] == 'luks':
-        if '-o' in args:
-            i = args.index('-o')
-            if 'key-secret' not in args[i + 1]:
-                args[i + 1].append(luks_default_key_secret_opt)
-                args.insert(i + 2, '--object')
-                args.insert(i + 3, luks_default_secret_object)
-        else:
-            args = ['-o', luks_default_key_secret_opt,
-                    '--object', luks_default_secret_object] + args
-
-    args.insert(0, 'create')
-
-    return qemu_img(*args)
+    return qemu_img('create', *args)
 
 def qemu_img_measure(*args):
     return json.loads(qemu_img_pipe("measure", "--output", "json", *args))