The Iranian government officially established the Persian Gulf Strait Authority on Monday, May 18, 2026, to assert maritime control and collect transit fees from commercial vessels navigating the strategic Strait of Hormuz.
Official state social media accounts unveiled the new agency online, stating that the platform intends to deliver real-time updates regarding operational activities and security developments within the strategic waterway.
According to the Israeli maritime intelligence and risk management firm Windward, shipping companies seeking passage must now secure permits by disclosing comprehensive cargo manifests, insurer details, crew lists, and ownership documentation. The authority has instituted a total ban on Israeli-linked vessels, while American ships face strict operational constraints.
Some commercial vessels have already complied with the new mandate, reportedly paying $2 million each to secure passage through the strait. Financial analysts at J.P. Morgan projected in their 16th annual Eye on the Market Energy Paper: Fighting Words report last month that Iran could generate between $70 billion and $90 billion in annual revenue if allowed to maintain the toll system.
The regulatory implementation has drawn explicit warnings from international financial compliance agencies regarding the legality of these transactions. The Office of Foreign Assets Control (OFAC) issued a directive in early May stating that both American and foreign entities completing these payments risk violating international sanctions.
According to OFAC, the required financial transactions might be disguised as fiat currency, digital assets, informal swaps, offsets, or nominal charitable donations directed to embassy accounts, the Bonyad Mostazafan, or the Iranian Red Crescent Society.
Iranian government officials defended the operational restructuring as a reclamation of legal oversight over the international shipping corridor. Iran’s First Vice President Mohammad Reza Aref explained the policy change, as reported by Al Jazeera.
“We had given up our right of sovereignty over the Strait of Hormuz, and we previously allowed the passage of military equipment that was intended to be used against us through the Strait of Hormuz. We will not permit that again,” said Mohammad Reza Aref, First Vice President of Iran.
The enforcement framework also targets foreign naval deployments near Iranian territorial waters. Ebrahim Azizi, the chairman of Iran’s Parliament National Security and Foreign Policy Committee, specified on Saturday that the new administrative body would offer specialized services in exchange for a mandatory fee.
