Iran Seeks Control Over Vital Strait with New Shipping Rules

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Iran Seeks Control Over Vital Strait with New Shipping Rules

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Iran is attempting to assert greater control over the Strait of Hormuz, a critical international waterway. On June 19, 2026, Iran’s newly created Persian Gulf Strait Authority (PGSA) announced mandatory, Iran-approved insurance for all ships passing through the strait. While this insurance is currently free for an initial 60-day period, the PGSA has indicated that fees are likely to be introduced thereafter. This action directly challenges a Memorandum of Understanding (MOU) signed last month between the US and Iran, which aimed to reopen the strait to commercial shipping and guaranteed toll-free passage for 60 days.

The PGSA also stated that passage is only permitted via a designated route near Larak Island, Iran’s preferred northern channel, and warned that any deviation would be treated as a violation. This comes amidst ongoing tensions, with the US military reporting on July 8, 2026, that it launched strikes against Iran in response to Iranian attacks on three commercial vessels in the Strait of Hormuz on July 7, 2026. These vessels were reportedly using a route along Oman’s coast, which Iran opposes, as it seeks to charge ships for using the waterway.

International law, specifically the United Nations Convention on the Law of the Sea (UNCLOS), generally establishes the Strait of Hormuz as an international strait where “transit passage” should be unimpeded and not subject to tolls. However, Iran has not ratified UNCLOS and has historically maintained that it retains control over passage through its territorial waters in the strait. The recent attacks and Iran’s new regulations highlight the differing interpretations of maritime law and the ongoing struggle for control over this vital chokepoint, through which nearly one-fifth of the world’s daily oil supply passes. The US has revoked a temporary waiver allowing Iranian oil sales, citing Iran’s actions in the Strait as “

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