Iran Establishes Persian Gulf Strait Authority to Manage Hormuz Traffic

Iran has formally announced the creation of a new body to manage the Strait of Hormuz, a strategic waterway through which a significant portion of global oil and gas shipments pass. The Supreme National Security Council unveiled the Persian Gulf Strait Authority (PGSA) on Monday, according to multiple reports, marking a step in Tehran's efforts to formalize its control over the vital shipping lane.

The announcement was made through the council's official X account, which stated that the PGSA would provide "real-time updates on the #Hormuz_Strait operations and latest developments." The account of the Revolutionary Guards navy also shared the post, as reported by several outlets including Dawn, France 24, and The Hindu.

Coverage Comparison

The establishment of the PGSA has been framed differently across media outlets. Some reports, such as those from ABC Australia and the Jerusalem Post, emphasize Iran's "tightening grip" on the strait and describe the new authority as part of a broader effort to "exert control" over the waterway. These reports use terms like "toll booth system" to characterize the new regime.

Other outlets, including Dawn and France 24, adopt a more neutral tone, focusing on the official announcements and providing less commentary on the implications. Al Jazeera also reported the move, highlighting the formalization of Iran's control without adopting the more confrontational language.

Key Claims

  • Formation of the PGSA: The Supreme National Security Council announced the formation of the Persian Gulf Strait Authority (PGSA) on May 18, 2026. The authority is intended to manage operations in the strait and provide updates on developments.
  • Transit fees and oversight: Reports indicate that ships transiting the strait now face tolls and strict oversight. The Jerusalem Post, citing Windward, reported that some vessels have already paid $2 million for transit. JPMorgan has forecast annual revenue from tolls in the tens of billions of dollars.
  • Application process: ABC Australia reported that ship captains and operators can apply for permission to cross the strait via email, with an application form requiring extensive data about the vessel, cargo, and crew.
  • New transit mechanism: Ebrahim Azizi, head of Iran's parliament national security commission, said on May 16 that Iran had prepared a "professional mechanism" to manage traffic, which would be "unveiled soon." He said only commercial vessels and parties cooperating with Iran would benefit, and fees would be collected for specialized services.
  • Chinese vessels granted passage: TASS reported on May 14 that Iran had granted Chinese vessels the right to pass through the strait as part of a strategic partnership, following requests from Chinese officials.
  • European talks: The Hindu reported, citing Iranian state television, that European countries were in talks with Tehran over transit for ships through the strait.
  • Iran's ports ready to assist: TASS reported that Iran's Port and Maritime Organization is ready to provide services, technical support, and medical assistance to commercial vessels in the strait.
  • US sanctions: The Jerusalem Post reported on May 28 that the United States had added the Persian Gulf Strait Authority to the Treasury Department's Specially Designated Nationals (SDN) list, linking it to the Islamic Revolutionary Guard Corps.
  • Iran's claims of control: TASS reported Parliament Deputy Speaker Haji Babaei as saying that Iran fully controls the passage of ships through the strait and that no vessel would pass without permission from the Islamic Republic.

Perspectives

Iranian Government: Iran's officials, including Deputy Foreign Minister Kazem Gharibabadi and Parliament Deputy Speaker Haji Babaei, maintain that the new measures are a legitimate exercise of sovereignty. Gharibabadi argued that Iran has provided "free of charge services" for decades and that the new protocol is necessary to cover costs for safe navigation, while asserting that the strait will remain open to ships linked to India.

United States: The US has imposed sanctions on the Persian Gulf Strait Authority, adding it to the Treasury Department's Specially Designated Nationals list. The US State Department has stated that international waterways must remain open and that no country should impose unilateral tolls.

International Observers and Analysts: Maritime analysts and commentators, as cited by ABC Australia and the Jerusalem Post, view the PGSA as an attempt to formalize control over the strait, with implications for global energy markets. The reports note that the moves have "rattled global markets" and given Tehran significant leverage.

European Countries and China: Reports indicate that European countries are in talks with Iran over transit, while China has been granted passage for its vessels as part of a strategic partnership, suggesting a range of international responses to Iran's new regime.