Iran Establishes 'Hormuz Transit Fee' Agency... US Calls It 'Illegal'

Iran Launches 'Persian Gulf Strait Authority'
Application Forms Distributed to Shipping Industry
Includes Identification Numbers, Destinations, and Previous Vessel Names

Iran, which has long claimed control over the Strait of Hormuz, has established an official government agency dedicated to managing related work. This move is seen as a step toward imposing transit fees on shipping companies. As the United States has declared this action illegal and voiced its opposition, tensions within the strait are expected to persist.

The face of Iran's Supreme Leader Ayatollah Mojtaba Khamenei was displayed on the streets of Tehran, Iran, on the 24th of last month (local time). Photo by AFP Yonhap News

According to international news outlets such as the Associated Press and CNN on May 7 (local time), Iran has launched a new government body called the 'Persian Gulf Strait Authority' (PGSA) and notified the shipping industry of its establishment. The PGSA is reportedly tasked with inspecting ships seeking to transit the Strait of Hormuz and imposing “taxes” on them.

According to the shipping industry, this agency has also issued an application form called the 'Vessel Information Declaration.' Documents obtained by CNN show that the PGSA application currently distributed to shipping companies consists of more than 40 items. Ships must report their name, identification number, country of departure, and destination. In addition, owners and operators are required to provide their nationality, crew nationalities, and detailed information about the cargo on board. The application also asks for any previous names the vessel may have had.

The Iranian authorities maintain that completing this application is mandatory for vessels to ensure safe passage. Ships are required to submit the requested information to Iranian authorities via email prior to transiting the Strait of Hormuz. However, it has not yet been confirmed whether any vessels have actually submitted the application so far.

CNN reported that the application form does not contain specific information regarding the imposition of transit fees. Previously, Iran had justified imposing such fees as compensation for damages caused by attacks from the United States and Israel. Some reports have suggested that the transit fee could reach as much as 2 million dollars per vessel.

On the 6th (local time), the marine support vessel 'Jaker Duty' docked at the Port of Fujairah, United Arab Emirates (UAE). Photo by Reuters Yonhap News

Currently, thousands of ships and tens of thousands of crew members are stranded inside the Persian Gulf, unable to pass through the chokepoint of the Strait of Hormuz. The so-called 'Project Freedom'—the U.S. naval escort operation in the Strait of Hormuz named by U.S. President Donald Trump—was temporarily suspended as of May 5. This was because Gulf allies such as Saudi Arabia and Kuwait refused to permit the use of U.S. military bases and airspace in their countries. According to the Wall Street Journal (WSJ), operations are expected to resume as early as later this week.

Iran's establishment of the PGSA is seen as a demonstration of its resolve to solidify control over the Strait of Hormuz. Previously, Iran's new leader Mojtaba Khamenei had ordered a “new management system” for the strait. On both April 30—Persian Gulf Day—and May 6, he delivered similar messages, asserting that the “blockade of the strait” should be used as leverage.

The United States, on the other hand, has stated it cannot tolerate Iran's actions. On May 7, Mike Waltz, U.S. Ambassador to the United Nations, told reporters, "Iran has launched what it calls the PGSA, demanding that all captains of international shipping, commercial vessels, and civilian ships go through de facto reporting procedures and pay bribes and transit fees to use international waters. This is not just a regional issue; it is a matter that affects the entire world." U.S. Secretary of State Marco Rubio also strongly criticized Iran’s move to collect transit fees in a Fox News interview on April 27, calling it “an act of piracy” and “illegal behavior.”

A representative from the maritime information firm Lloyd Intelligence stated, "Ship owners have already been receiving similar information requests from Iranian authorities. However, this appears to be an attempt to formalize the procedures."

This content was produced with the assistance of AI translation services.