Iran has now institutionalised its control over the Strait of Hormuz by creating the Persian Gulf Strait Authority (PGSA), which requires vessels to obtain permits and pay tolls before transiting.

Nations such as India and Pakistan have negotiated passage rights, while ships linked to the US or Israel face outright denial. The system is already in force, with some vessels reportedly paying up to $2 million in Chinese yuan for clearance.

Tehran’s move comes amid the ongoing US–Iran standoff and the blockade of Iranian ports, with the Strait of Hormuz remaining the most sensitive global energy chokepoint.

The PGSA has introduced a formalised permit system under which vessels must submit a “Vessel Information Declaration” form containing over forty detailed questions.

These include ownership records, insurance details, crew manifests, cargo descriptions, vessel identification numbers, previous names, and intended transit routes. The form must be emailed to the authority at info@PGSA.ir, after which further instructions are communicated. Any incorrect or incomplete information is deemed the sole responsibility of the applicant.

Iranian officials have warned that countries complying with US sanctions will face difficulties crossing Hormuz, while ships linked to the US and Israel will be denied passage altogether. Army official Mohammad Akraminia stated that the new legal and security system is designed to bring economic, political, and security gains.

Ebrahim Azizi, head of Iran’s parliamentary national security commission, issued a warning to governments siding with US-backed resolutions, cautioning that they risk permanent closure of the strait to their vessels.

The PGSA has effectively created what shipping analysts describe as a “Tehran toll booth”, transforming Hormuz from a free passage into a checkpoint regime. Reports suggest that some vessels have already paid substantial sums—up to $2 million—for transit approval, with payments allegedly made in Chinese yuan.

However, Iran has not officially announced a tariff structure or payment mechanism, leaving shipping companies and insurers concerned about unpredictability. Maritime intelligence experts note that this represents the institutionalisation of wartime practices, where vessels had begun embedding ownership and cargo details into destination fields to signal compliance.

Iran has repeatedly indicated that it intends to share toll revenues with Oman, and Deputy Speaker Hamidreza Hajibabaei confirmed last month that Tehran had already received its first revenue from the tolls.

Supreme Leader Mojtaba Khamenei has articulated a broader vision of a “new regional and global order under a strong Iran”, emphasising the leverage of closing the strait to achieve strategic dominance and eliminate foreign interference.

The United States has responded by imposing new sanctions and warning ships against paying Tehran for passage. Washington, along with Bahrain, has drafted a UN resolution demanding Iran halt restrictions on shipping, though Russia has signalled it will veto the measure.

Meanwhile, European powers such as the UK and France are convening over forty nations to discuss a European-led escort mission to safeguard vessels through Hormuz, underscoring the global alarm over Iran’s chokehold on the waterway

The Strait of Hormuz, through which nearly 20 per cent of global oil trade normally passes, has been severely restricted since the outbreak of war on 28 February, triggering the largest oil supply shock in history and sharply driving up energy prices. With Iran’s new system now fully operational, the strait has become the focal point of geopolitical contestation, energy insecurity, and maritime risk.

AFP