The Strait of Hormuz, a narrow waterway connecting the Persian Gulf to the world’s oceans, has become a major concern of the global economy.
Under normal circumstances, vessels carrying almost a fifth of the world’s oil pass through the strategic route every day. However, the ongoing US war with Iran has effectively disrupted traffic through the passage, trapping more than 90% of the region’s crude and refined oil exports, according to the International Energy Agency.
Iran’s new regulatory system for maritime traffic in the Strait of Hormuz
Iran has introduced a new regulatory system aimed at tightening control over maritime traffic through the strategically important Strait of Hormuz, with prior authorization mandatory for vessels passing through the waterway.
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According to a Press TV report, shipping companies intending to pass through the choke point will receive electronic instructions from an address linked to the Persian Gulf Straits Authority (PGSA). These reports will contain updated passage rules and requirements that all international ships must follow.
Under the revised protocols, vessels must secure transit permits before entering the strait, a key route for global energy transport. Iranian state media described the move as establishing a “sovereign administration system” in the Strait of Hormuz.
According to a CNN report, Iran has introduced a new protocol that requires all commercial ships to provide detailed information, including cargo details, ownership records and crew nationalities, through a 40-question declaration before receiving permission to release. Vessels that do not comply with these “legal frameworks” risk facing missile or drone strikes or even seizure by Iranian naval forces.
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The PGSA is presented as part of a broader effort by the Iranian leadership under Mojtaba Khamenei to create a “new regional order” after the conflict that began in February 2026.
Shipping operators are now required to email details of the vessel directly to the PGSA, including identification numbers and any previous names of the vessel. Iranian authorities also warned that only “complete and accurate information” would ensure safe passage, adding that failure to comply could result in “decisive measures”.
What does international law say?
The United Nations Convention on the Law of the Sea (United Nations Convention on the Law of the Sea) states that countries bordering international straits cannot charge vessels merely for exercising the right of passage through them.
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However, it allows coastal states to impose reasonable charges for specific services provided to ships, such as pilotage, towing assistance or port-related services. These fees must be applied in a non-discriminatory manner and cannot be burdened for ships based on nationality or country of origin.
Why does the Strait of Hormuz matter?
Historically, the Strait of Hormuz was a key trade corridor that served as a route for goods such as ceramics, ivory, silk, and textiles to be transported from China through the region.
In modern times, it has become one of the world’s most important energy transit routes, with supertankers carrying oil and gas from countries including Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates and Iran. Most of these exports go to Asian markets, particularly China, which remains Iran’s largest oil buyer.
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While there are pipelines in Saudi Arabia and the United Arab Emirates that can bypass the strait, the US Energy Information Administration says that “most of the volumes that pass through the strait have no alternative means of exiting the region”.
Threats to the route have caused global energy prices to spike before, as recently as in June during the Israel-Iran war.
US-Iran war: Oil prices rise after attacks threaten truce
Oil prices rose in early trading on Friday after falling the previous day. International benchmark Brent crude rose 0.7% to $100.78 a barrel, compared with around $70 a barrel before the Iran conflict erupted in late February.
U.S. West Texas Intermediate crude also rose 0.6% to $95.36 a barrel.
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Meanwhile, the United States Central Command said it had intercepted what it described as “unprovoked” Iranian attacks targeting Navy vessels in the Strait of Hormuz, although no ships were hit.
However, US President Donald Trump declared that the ceasefire agreement with Iran remained in force.
