Iran has a body to oversee vessels passing Strait of Hormuz, charge toll: What does it mean?

Strait of Hormuz, a key energy trade waterway, continues to be in the center of the war between Iran and the United States even as the two countries scramble to find a way to end the conflict. While the US has repeatedly raised objections about Iran’s control over the Strait of Hormuz, which remains effectively closed, Tehran has sought to formalise its supervision over the waterway.

Iran has formed Persian Gulf Strait Authority which has "already introduced a new framework requiring ships to obtain transit authorisation and pay tolls before sailing." (File Photo/HT)
Iran has formed Persian Gulf Strait Authority which has “already introduced a new framework requiring ships to obtain transit authorisation and pay tolls before sailing.” (File Photo/HT)

Last week, Iran created an agency to oversee and approve what vessels can pass through the Strait of Hormuz and to collect a fees from them, said Lloyd’s List, a shipping journal.

It said that Iran has formed Persian Gulf Strait Authority which has “already introduced a new framework requiring ships to obtain transit authorisation and pay tolls before sailing.”

“Ships are required to submit detailed records of ownership, insurance, crew details and intended transit route”, Lloyd’s List added citing a form sent by the authority.

Track live updates of US-Iran war here

A report by Iran’s Revolutionary Guards-backed Press TV said on Tuesday, May 5, that under the new system, “all vessels intending to transit the Strait will receive an email from the official address info@PGSA.ir outlining the rules and regulations for passage.”

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This move seeks to formalise Iran’s control of the Strait of Hormuz while the United States has continuously opposed charging of a toll to pass the waterway as it is an international water body.

The developments about the new agency came as two sides engaged in a clash in the Strait of Hormuz last week even as negotiations are underway.

On Thursday, May 7, Iran’s state media reported that the country’s armed forces engaged in a fire exchange with the “enemy” Qeshm Island located in the Strait of Hormuz.

Key meet on Strait of Hormuz

The United Kingdom and France will host over 40 countries on Monday to discuss a European-led plan to escort vessels through the Strait of Hormuz. The countries will discuss ways and their contributions to the mission during the key meet.

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The gathering will be chaired by UK Defence Secretary John Healey along with his French counterpart Catherine Vautrin.

“We are turning diplomatic agreement into practical military plans to restore confidence for shipping through the Strait of Hormuz,” Healey said.

However, the idea of the meeting did not sit well with Iran, whose deputy foreign minister said that any such action would be treated as escalation of war.

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“Any deployment and stationing of extra-regional destroyers around the Strait of Hormuz, under the pretext of ‘protecting shipping’ is nothing but an escalation of the crisis, the militarization of a vital waterway, and an attempt to cover up the true root of insecurity in the region,” Iran’s deputy foreign minister Kazem Gharibabadi wrote in a post on X.

Iran’s response ‘completely unacceptable’

Meanwhile, the negotiations between Iran and the United States do not seem to escalate as the US President Donald Trump outrightly rejected Iran’s response to the American proposal to end the war.

“I have just read the response from Iran’s so-called ‘Representatives.’ I don’t like it — TOTALLY UNACCEPTABLE!” Trump wrote on Truth Social.

Trump’s post came after Iran responded to US’ proposal to end the war on Sunday and said that would not shy away from a military confrontation in case of fresh strikes or more foreign warships being allowed in the Strait of Hormuz.

(With inputs from AFP, AP)

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