Iran has made a highly unexpected and major decision regarding the Strait of Hormuz, the lifeline of global oil supplies. On Monday, May 18, 2026, Iran’s top security body officially announced the formation of a new authority—the ‘Persian Gulf Strait Authority’ (PGSA)—to control and regulate commercial shipping through this strategic waterway. According to Ibrahim Azizi, Chairman of Iran’s Parliamentary Security Panel, and the Ministry of Foreign Affairs, all commercial vessels passing through the Strait of Hormuz will now be required to pay a transit fee (toll tax) in exchange for specialized maritime services. Furthermore, it has been made mandatory for all vessels to secure a ‘transit permit’ prior to passage by sharing comprehensive details regarding ownership, insurance, crew members, and cargo via email (info@PGSA.ir).
Iran’s new maritime policy has triggered widespread concern across global trade routes and international markets. Tehran has clearly indicated that this new system will not be applied uniformly to all nations. The full benefits of this stringent law will be reserved strictly for countries that maintain cooperative ties with Iran. Conversely, Iranian Vice President Mohammad Reza Aref delivered a stark warning, stating that vessels linked to hostile nations—specifically the US and Israel—or those transporting military hardware for them, will be strictly barred from utilizing the route and will face severe restrictions. Experts view this new framework, which is being coordinated alongside Oman, as a direct violation of international maritime laws, specifically the Freedom of Navigation. Reports indicate that some vessels have already been charged hefty toll fees in Chinese Yuan.
This move has raised deep anxieties regarding potential disruptions to the global oil supply and a sharp escalation of military tensions in the Gulf region. With nearly 20 percent of the world’s crude oil passing through the Strait of Hormuz, Iran’s tightening grip over the passage, combined with direct warnings to Gulf nations hosting US military bases (such as the UAE and Kuwait), sounds an alarm bell for the global economy. Following US President Donald Trump sharing maps aimed at countering Iran, and the US Treasury (OFAC) warning of sanctions against this new toll system, the international community and major oil-importing nations like India are watching closely to see how this geopolitical crisis unfolds.
