Iran establishes authority to approve and toll all ships transiting Strait of Hormuz
Primary region Middle East
Tags Energy · Trade · Diplomacy · Security
Regions Middle East
Iran has formally created the Persian Gulf Strait Authority (PGSA), requiring all vessels transiting the Strait of Hormuz to complete a 40+ question application disclosing ownership, crew nationalities, cargo details, and intended routes. Shipping sources report vessels are paying up to $2 million per transit, settled in Chinese yuan. The US Treasury's OFAC has warned that such payments could expose firms to secondary sanctions. Iran also announced a maritime control area extending from the Gulf of Oman toward UAE and Omani waters. The Strait carries approximately one-fifth of global oil and LNG trade. India and Pakistan are among governments that have negotiated passage for their flagged vessels.
Strategic interpretation
The PGSA's creation represents Iran's attempt to convert wartime disruption into a permanent institutional lever over global energy flows. By formalizing a checkpoint regime, Iran is creating facts on the ground that may outlast the current conflict. The use of Chinese yuan for toll payments signals a sanctions-evasion partnership with Beijing that could complicate US secondary sanctions enforcement.