Iran Requires Permission and Insurance for Ships Crossing Strait of Hormuz

On June 19, Iran announced that vessels crossing the Strait of Hormuz must obtain permission from its Persian Gulf Strait Authority (PGSA) and acquire a mandatory insurance policy. Currently, this insurance is provided at no cost, but the PGSA indicated that fees may be introduced in the future. The announcement also stated that ships must adhere to specific routes, which contradicts guidance from western naval groups recommending vessels stay close to the Omani coast. Concerns have been raised about potential tolls on the strait, especially following a recent memorandum of understanding with the US that allows free transit for a limited time. The PGSA, established during the war and sanctioned by the US, requires vessels to submit requests for passage permits. Iran's neighbors have disputed the authority's legitimacy.