Iran has officially formalized its control over shipping in the Strait of Hormuz by setting up a Persian Gulf Strait Authority (PGSA). The new government agency, established at a time of heightened regional tensions, will be responsible for monitoring all traffic and collecting tolls from commercial vessels passing through what is considered one of the world’s major energy ‘bottlenecks’.
According to Lloyd’s List, the PGSA has already introduced a procedure requiring shipowners to obtain prior authorization to transit. The application forms require the disclosure of sensitive data, including the ship’s ownership records, details of insurance cover, the crew’s personal details and the planned route.
Tehran’s move is an attempt to institutionalise its sovereignty over the strait, with only the PGSA authorized to grant permission for ships to transit
For the shipping giants, the new Iranian regulations mean an immediate rise in operating costs and a bureaucratic nightmare that could affect a vital trade route for one fifth of the world’s crude oil. The most critical hurdle is a geopolitical one: according to reports by the specialist publication Splash247, Washington has already hardened its stance, threatening financial sanctions and exclusion from markets for anyone paying tolls into Tehran’s coffers.
Shipping companies now face a dilemma: complying with the demands of the new Iranian authorities to ensure traffic flows smoothly effectively triggers economic retaliation from the United States. This is by no means a remote possibility: the US electronic intelligence services’ ability to monitor international financial flows makes it almost impossible to conceal any payments, exposing carriers to unprecedented risks in an area that is already extremely unstable.
According to a number of analysts, the strategic risk in the Strait of Hormuz is now going far beyond specific attacks on ships, striking at the heart of global logistics. Lars Jensen, CEO of Vespucci Maritime, points out that Tehran has effectively extended its “controlled zone” to the point where it now borders vital hubs in the United Arab Emirates such as Fujairah, Khor Fakkan and Ras Al-Khaiman. The repercussions for trade between the Gulf and international markets could be severe.
For Akhil Nair, a logistics and transport expert, these ports are not merely gateways to the United Arab Emirates, they form the very backbone of transhipment operations for the entire Persian Gulf. If they were to fall under the control claimed by Iran, the damage would not be limited to a few ships lying at anchor; rather, the entire network of feeder services serving the east coast of Saudi Arabia, Bahrain, Qatar and Iraq would be thrown into turmoil.
The underlying truth is that, after 900 consecutive days of crisis in the Red Sea and over two months of instability in the Strait of Hormuz, the situation has changed radically. The resilient nature of global trade has led it to change direction: moving away from total dependence on sea routes in favour of hybrid logistics models. To survive the instability of maritime bottlenecks, the major trading powers are accelerating the integration of ports, land corridors and diversified transport infrastructure, seeking tangible alternatives to the besieged seas.
MSC is doing this with its new landbridge service between Europe and the Middle East, and, likewise, CMA CGM through its agreement with Ad Ports to transform Khalifa Port into an intermodal hub.
The broader aim is to create a more flexible system in which goods can be routed through multiple port terminals and freight villages, reducing the risk of congestion and improving overall efficiency. However, many are wondering whether such strategies can really lead to a new normalization of transport dynamics.
The PGSA announcement comes just as rumours are circulating about a possible imminent agreement between the United States and Iran to end hostilities. According to a number of diplomatic sources cited by Axios, the parties are reportedly close to a framework agreement that would involve the mutual lifting of navigation restrictions in the Strait, restoring the free movement of goods in exchange for concessions on sanctions and the nuclear programme.
In short, uncertainty reigns supreme, especially given that there are still 150 oil tankers and product tankers stranded in the area. This is having a direct impact on their crews, whose morale is now at rock bottom, according to the latest quarterly happiness survey conducted by the non-profit organisation The Mission To Seafarers.
The report, covering the first quarter, measures the happiness of seafarers by considering factors like pay, health, food quality, shore leave, workloads and social interaction.
The analysis reveals a clear disparity between the data collected before and after the launch of Operation Epic Fury in the Persian Gulf and traffic through the Strait of Hormuz subsequently coming to a complete halt.
The stranded crews have reported critical shortages of essential supplies, with some forced to boil seawater for drinking and to ration their food to one meal a day. Even seafarers operating outside the immediate war zone have reported high levels of stress and fear, describing a persistent sense of uncertainty.
“The Q1 data tells two very different stories. The early signs were encouraging; wellbeing was improving and there were reasons for cautious optimism. But the outbreak of conflict in the Persian Gulf changed everything, and the speed of that deterioration should alarm us all,” said Ben Baley, director of the Mission to Seafarers.
