Iran tightens administrative transit rules in the Strait of Hormuz, heightening shipping frictions

Oil shipping through the Strait of Hormuz has a new problem. Not just missiles, drones, or naval harassment — paperwork. Iran has set up a formal system that says ships now need to coordinate passage through a new body called the Persian Gulf Strait Authority, or PGSA. That sounds administrative. But in a chokepoint that carries about 20% of the world’s oil, administrative friction is power. ### What actually changed? On May 5, Iranian state media said Tehran had launched a new mechanism to govern maritime traffic through Hormuz. The new setup routes vessels through the PGSA, which sends instructions from an official email address and requires ships to align with updated transit rules before passage. This is a shift from informal coercion to a branded, institutionalized system. (presstv.ir) ### What do ships have to do now? The core requirement is a Vessel Information Declaration. Reports describing the form say it asks for more than 40 pieces of information — ownership, insurance, crew nationalities, cargo details, flag history, origin, destination, and cargo value. In plain English, Iran is demanding a much fuller operating picture before a ship moves through the strait. (presstv.ir) ### Why is that a big deal? Because control does not always look like a blockade. If a state can force ships to request permission, disclose sensitive commercial data, wait for instructions, and possibly pay a toll, it can slow traffic without firing a shot. Basically, this is a tollbooth mixed with a checkpoint. The ship still moves — but only after another actor decides how, when, and on what terms. (insurancejournal.com) ### Are tolls part of this? Looks that way, though the exact tariff schedule is still murky. Multiple reports say Iran’s system links transit approval to payment, and one widely cited account says some ships have paid as much as $2 million, sometimes in Chinese yuan. The catch is that the official fee structure still has not been clearly published, which makes planning harder for shipowners and insurers. (theweek.in) ### Who is Iran targeting? Not every ship equally, at least by Iran’s own rhetoric. On May 10, army spokesman Mohammad Akraminia said countries complying with U.S. sanctions on Iran would “certainly face problems” crossing Hormuz. That turns the permit system into leverage. It is not just traffic management — it is a way to sort vessels by politics, sanctions exposure, and perceived alignment. (theweek.in) ### How are shipowners reacting? With caution, and in some cases outright refusal. Industry executives told Bloomberg they still see the process as too unclear to trust, and at least one tanker company said it would not hand Iran precise voyage details. U.S. maritime guidance is even blunter for U.S.-flagged vessels — ignore Iranian emails or radio calls that try to divert them or collect voyage information, if it is safe to continue. (presstv.ir) ### Why does this hit markets so fast? Because Hormuz is the narrow valve on Gulf oil and LNG exports. Even when the waterway is not fully shut, uncertainty pushes up war-risk premiums, freight costs, and inventory anxiety for refiners. A slow strait can matter almost as much as a closed one if enough owners decide the legal, financial, or security risk is not worth it. (insurancejournal.com) ### Bottom line Iran’s move is clever because it turns bureaucracy into leverage. A blockade is dramatic and invites an immediate response. A permit regime is slower, murkier, and easier to defend as “regulation.” But for shipping markets, the effect can rhyme — fewer willing vessels, higher costs, and a constant question over who really controls passage through the world’s most important oil chokepoint. (presstv.ir) (msn.com)