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Iran Conflict 2026
12JUN

Iran charts Hormuz with formal PGSA coordinates

4 min read
09:18UTC

Iran's Persian Gulf Strait Authority published the formal coordinates of its Hormuz controlled zone on 20 May: eastern boundary from Kuh-e Mubarak to Fujairah, western boundary from Qeshm to Umm Al-Quwain, with all vessels inside required to obtain authorisation.

ConflictDeveloping
Key takeaway

Once coordinates are published, neighbours and underwriters must respond on paper or accept by silence. Tehran has forced that choice.

Iran's Persian Gulf Strait Authority (PGSA, the Iranian maritime body administering the toll architecture) published the formal coordinates of its "controlled maritime zone" on Wednesday 20 May 1. The eastern boundary runs from Kuh-e Mubarak on the Iranian coast to southern Fujairah in the UAE; the western boundary runs from the tip of Qeshm Island in Iran to Umm Al-Quwain in the UAE. All vessels inside the zone, per the Iran International notice, must coordinate with the authority and obtain authorisation. PGSA has opened its vessel-submission portal four days earlier and is still withholding the fee schedule it promised .

The coordinates convert what had been operational practice and the Majlis's earlier toll bill into a cartographic-legal claim. Verbal declarations of authority can be walked back; published coordinates cannot, because they trigger a written obligation on neighbours and flag states. The United Arab Emirates has not, as of writing, published a counter-coordinate set, which leaves Emirati silence as a maritime-law response.

The insurance consequence runs through Lloyd's of London. Until Wednesday, underwriters had a verbal toll claim and a portal whose fee schedule remained unwritten. With coordinates on a chart, the boundary can be modelled: tanker routes can be plotted against the zone, war-risk premium tiers can be drawn against entry and exit lines, and the structural insurance layer Goldman Sachs and Morgan Stanley flagged on 12 May now has the cartographic input it needs to price.

Tehran chose to publish coordinates while withholding the fee, and the asymmetry reads as deliberate. The chart converts the zone into a legal fact; the missing fee preserves Iranian discretion over what compliance actually costs. Flag states and underwriters now have to accept or reject the cartography on paper, while Tehran retains the room to set the price later.

Deep Analysis

In plain English

Iran's newly formed Persian Gulf Strait Authority published precise GPS-style boundary coordinates for the maritime zone it says it controls at the Strait of Hormuz. This is the narrow waterway through which roughly 20% of the world's oil passes. Before this, Iran had made verbal statements claiming it had authority over ships passing through. Publishing exact coordinates is a significant step up: it creates a written, mappable boundary that other countries and shipping companies now have to formally respond to or ignore on the record. Iran is saying: all ships inside this zone need to get our permission. It has not yet published what it will charge for that permission, which appears deliberate; Iran gets the legal claim on paper while keeping flexibility on the price. Shipping insurers and naval commanders now have a specific map they must account for, even if they do not accept its legal validity.

What could happen next?
  • Precedent

    Flag states that do not publish formal counter-coordinates within 90 days risk having their silence interpreted as acquiescence under customary international law. The UAE, as a state whose own coastline provides two of the PGSA zone's four boundary reference points, faces the most immediate pressure to respond on paper.

    Short term · Suggested
  • Consequence

    Lloyd's of London underwriters now have the cartographic input needed to model war-risk premiums against specific vessel entry and exit points in the declared zone. The coordinate publication enables tiered premium structures; vessels transiting the zone pay a higher premium than vessels skirting the boundary; which partially implements the insurance-layer effect of the PGSA architecture without Iranian enforcement.

    Immediate · Assessed
  • Risk

    The withheld fee schedule creates a second-stage legal moment: when PGSA publishes its tariff, flag states and Rubio's 'completely illegal' position will face a concrete enforcement test. The coordinate publication without a fee is a deliberate staging that preserves Iranian discretion on timing.

    Short term · Assessed
First Reported In

Update #105 · Khamenei keeps the uranium; House pulls the vote

Iran International· 22 May 2026
Read original
Different Perspectives
Oil markets and Lloyd's of London
Oil markets and Lloyd's of London
Brent fell to $89.25 on ceasefire probability, not new barrels, with traders voting for Trump's deed over Tehran's denial. Lloyd's has not repriced Hormuz war-risk cover because its trigger requires a UN Security Council resolution or government certification, so tanker insurance costs remain elevated regardless of the spot move.
Pakistan and Qatar mediators
Pakistan and Qatar mediators
Pakistan's Mohsin Naqvi was in Tehran for his second visit in under a week, using the Pakistan-Qatar channel that delivered April's ceasefire after an identical public-denial cycle. The channel carries both civilian and military buy-in from Islamabad, the only configuration Iran's split command cannot dismiss as a partial signal.
India
India
India summoned the US Deputy Chief of Mission after three Indian sailors were killed aboard MT Settebello, the first formal grievance from a major non-belligerent directed at US enforcement. Indian seafarers supply roughly 12 per cent of the global maritime workforce; their presence on third-flag Gulf tankers is structurally inevitable regardless of bilateral diplomacy.
Islamic Revolutionary Guard Corps (IRGC)
Islamic Revolutionary Guard Corps (IRGC)
The IRGC declared Hormuz closed on 11 June while civilian negotiators were on the same mediation channel, then issued no public comment on the MoU framework. Its silence on the framework, rather than any foreign ministry statement, is the operative approval signal; the corps' unilateral Hormuz closure shows it did not treat the diplomatic track as binding on its operations.
Iran foreign ministry (Baghaei)
Iran foreign ministry (Baghaei)
Esmail Baghaei told IRNA that reports of a finalised deal were 'merely speculation' and that Iran had 'not yet made a final decision'. The denial is structurally identical to Iranian foreign ministry statements during the April ceasefire talks, which produced a binding text within 48 hours of the same language.
Trump administration / CENTCOM
Trump administration / CENTCOM
Trump cancelled the third strike day and called the MoU 'very strong' and almost ready to sign, while CENTCOM kept tanker enforcement running in the same 24-hour window. The administration is simultaneously withdrawing the military pressure it claims drove the deal and sustaining the enforcement campaign it is trying to trade away.