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Persian Gulf Strait Authority
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Persian Gulf Strait Authority

Iranian body administering Strait of Hormuz transit permits, fees and compulsory insurance.

On 12 July, the Persian Gulf Strait Authority said passage through Hormuz was "not possible" after the GFS Galaxy strike, putting its claimed control of transit at the centre of the closure dispute.

Last refreshed: 22 September 2026 · Appears in 3 active topics

Key Question

Does the PGSA insurance mandate make the 60-day charge-free window an enrolment trap?

Timeline for Persian Gulf Strait Authority

#180 29 Sept

Published a non-compliant vessel list that did not include Al Funtas

Iran Conflict 2026: Al Funtas is struck and files no report
#153 12 Jul

Posted that passage through Hormuz was currently not possible

Iran Conflict 2026: IRGC strikes GFS Galaxy, shuts Hormuz
View full timeline →

Background

The Persian Gulf Strait Authority is an Iranian state body that administers a claimed permit system for Strait of Hormuz transits. It seeks vessel registration, ownership and cargo documentation, and clearance for an Iranian-designated corridor. Its public portal made those administrative demands operational in May 2026.

The authority turns Iran's maritime claim into a shipping-facing bureaucracy. It has presented passage conditions, fees and Iranian-approved insurance as parts of one system. Its claimed controls remain contested by states and operators that treat the strait as an international transit route.

The PGSA matters because it supplies the paperwork and rules through which Iran can assert recurring control over commercial traffic. On 16 May, Iran's parliamentary security committee publicly backed the fee mechanism and an exclusion for Project Freedom-linked vessels. That institutional role is distinct from a single military closure order.

Key Issues
Strait closure

Its transit claim faces a test

On 12 July, the Persian Gulf Strait Authority said passage through the strait of Hormuz was "not possible" after the GFS Galaxy was struck. The statement put the authority's claimed transit role behind a closure declaration rather than a routine permit process.

Five days earlier, vessels were still being hailed and diverted into an Iranian-controlled northern corridor while the threat level remained severe. For the authority, that operating environment made its corridor rules more consequential, but also tied its administrative system to a route whose safety remained disputed.

Transit fees

Its fees shape passage choices

The authority's fee system remained central to commercial passage after Iran's toll claim became public in June. An Iranian MP said ships were being charged US$1.5m to US$2m, with barter goods or cryptocurrency used outside dollar clearing channels.

On 20 June, the authority added compulsory insurance to Hormuz transits, initially without charge and with fees reserved for August. That moved its role beyond collecting payment: operators faced an Iranian registration and insurance requirement even where international insurers would not provide cover.

Common Questions
Why did Iran make marine insurance compulsory for Hormuz transits?
On 20 June 2026 the PGSA mandated compulsory insurance on all Hormuz transits, supplied free by Iranian-approved underwriters for now, with fees reserved from August. Lloyd's List said the mandate 'defies UNCLOS' for vessels in Oman's waters. The move builds an enrolment database before the charge-free window closes.Source: event
Has the Islamabad ceasefire deal abolished Iran's Hormuz toll?
No. The Islamabad MoU bans the word 'toll' but invokes UNCLOS Article 26(2) to permit equivalent 'maritime navigation services' charges after a 60-day charge-free window closing around 17 August 2026. FM Araghchi confirmed charges will return. The PGSA continues operating.Source: event
Is Iran's Hormuz toll legal under international law?
No, according to UNCLOS Article 38, which guarantees transit passage through international straits without prior authorisation or fees. The PGSA's toll directly contradicts this. Five Gulf states wrote formally to the IMO rejecting the regime in May 2026, and US Secretary of State Rubio called it 'completely illegal'. Iran counters that UNCLOS's international-waterway designation does not apply to The Persian Gulf.Source: Lowdown iran-conflict-2026
What are the PGSA's formal boundaries at the Strait of Hormuz?
The PGSA published its controlled maritime zone coordinates on 20 May 2026: eastern boundary from Kuh-e Mubarak (Iran) to southern Fujairah (UAE); western boundary from the tip of Qeshm Island (Iran) to Umm Al-Quwain (UAE). All vessels inside the zone must coordinate with the authority and obtain authorisation before transiting.Source: Lowdown iran-conflict-2026
Which countries have paid Iran's Hormuz tolls?
Several vessels paid yuan tolls through the PGSA's formal channel. Iraq, Pakistan, Qatar, and India received bilateral passage without yuan tolls under a separate state-to-state track, with Tehran accepting political engagement in lieu. Iran extended bilateral passage agreements to these states as a patronage mechanism distinct from the formal PGSA registration system.Source: Lowdown iran-conflict-2026
What is Iran's Persian Gulf Strait Authority and what does it do?
The PGSA is an Iranian state body established on 5 May 2026 to administer transit permits and collect passage fees from commercial vessels transiting the strait of Hormuz. It requires registration, formal documentation, and toll payment — up to $2 million per vessel in Chinese yuan — before issuing clearance. Deviation from the designated corridor triggers declared military intervention.Source: Lowdown iran-conflict-2026
How are Iraq and Pakistan transiting Hormuz without paying the PGSA toll?
They use the PGSA's bilateral state-to-state track; Iran accepts political engagement in lieu of yuan tolls for governments Tehran regards as friendly, creating a patronage network alongside the formal toll regime.Source: event
Is Project Freedom excluded from the PGSA toll corridor?
Yes. Azizi explicitly named 'the so-called freedom project' as excluded from Iran's toll mechanism on 16 May 2026, formalising the IRGC's operational exclusion as a parliamentary position.Source: event
Can ships pay Iran's Hormuz toll without violating US sanctions?
Payments are in Chinese yuan to avoid OFAC's dollar-correspondent enforcement lever, but OFAC has not issued a general licence, leaving paying operators exposed to secondary sanctions risk.Source: event
Why are Hormuz tolls being paid in Chinese yuan?
Paying in yuan bypasses US dollar correspondent banking, removing OFAC's primary enforcement mechanism against sanctioned transactions.Source: event
How much does it cost to transit the Strait of Hormuz now?
Lloyd's List confirmed vessels are paying up to $2 million per ship to the PGSA for transit clearance, payable in Chinese yuan.Source: Lloyd's List
How does the Persian Gulf Strait Authority conflict with international maritime law?
UNCLOS Article 38 guarantees ships of all flags the right of transit passage through international straits without prior authorisation. The Persian Gulf Strait Authority requires exactly that: registration, documentation, and a paid toll. Iran withdrew from UNCLOS in 2007, giving it a contested argument the convention does not bind it.Source: Maritime Executive
What does MARAD Advisory 2026-004 say about the new Iranian Hormuz permit regime?
MARAD issued Advisory 2026-004 acknowledging the Persian Gulf Strait Authority alongside the pre-existing 2026-001 advisory on Iranian seizures. It is the first written US-government recognition that Iran has produced an institution Washington's own posture cannot reconcile with.Source: MARAD
Will the Persian Gulf Strait Authority survive a ceasefire or US pause of Project Freedom?
The authority is a domestic Iranian law instrument, not a kinetic deployment. It creates an institutional fact on paper that will outlast any pause, Ceasefire or resumption of escort operations. Even if Project Freedom is suspended indefinitely, the authority remains valid under Iranian domestic law.Source: Lowdown briefing
Why did Iran suspend the Hormuz seafarer evacuation corridor?
The PGSA suspended the Oman-IMO evacuation corridor on 25 June 2026 after the IRGC drone-struck M/V Ever Lovely inside it. The suspension stranded approximately 11,000 seafarers WHO had been using the corridor to exit the Hormuz transit zone.Source: Lowdown iran-conflict-2026 Update 140
How many seafarers are stranded after Iran closed the Hormuz corridor?
Approximately 11,000 seafarers were stranded after the PGSA suspended the Oman-IMO evacuation corridor on 25 June 2026 following the IRGC drone strike on M/V Ever Lovely.Source: Lowdown iran-conflict-2026 Update 140
Has the Persian Gulf Strait Authority declared Hormuz closed?
On 12 July 2026 the PGSA posted that passage through the strait was "not possible" after the IRGC Navy struck the container ship GFS Galaxy, its most assertive closure act to date.Source: event
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