Iran Forms New Body to Manage Strait of Hormuz, Impose Tolls
Iran Forms New Body to Manage Strait of Hormuz Tolls

Iran's top security body, the Supreme National Security Council, officially announced on Monday the formation of a new entity to manage the Strait of Hormuz, a vital waterway that Tehran has effectively closed and now intends to charge ships for traversing.

New Authority Announced

In a post on its official X account, the Supreme National Security Council introduced the Persian Gulf Strait Authority (PGSA), stating it would provide "real-time updates on the #Hormuz_Strait operations and latest developments." The Revolutionary Guards navy also shared the same post on its account.

The exact functions of the new body remain unclear, but earlier this month, Iranian English-language broadcaster Press TV described it as a "system to exercise sovereignty over the Strait of Hormuz." According to Press TV, ships passing through the strait have been sent "regulations" from the email address [email protected].

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Background of the Crisis

Iran has largely blocked shipping through the strait since the outbreak of war with the United States and Israel on February 28. A fragile ceasefire has been in place since April 8. Iran's control over the waterway has rattled global markets, giving Tehran significant leverage, while the United States has imposed its own naval blockade on Iranian ports.

In peacetime, the Strait of Hormuz accounts for roughly a fifth of global oil and liquefied natural gas shipments, along with other key commodities including fertiliser.

Iran's Stance on Future Traffic

Since the war began, Iran has repeatedly stated that maritime traffic through the strait would "not return to its pre-war status." Last month, Tehran claimed it had received the first revenue from tolls on the waterway. On Saturday, Ebrahim Azizi, head of the Iranian parliament's national security commission, said Iran "has prepared a professional mechanism to manage traffic" through the strait, adding that it will be "unveiled soon."

The formation of the Persian Gulf Strait Authority marks a significant step in Iran's efforts to formalize its control over the strategic waterway, potentially reshaping global energy trade routes and maritime security dynamics in the region.

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