Iran Creates New Agency to Control Shipping in Hormuz

An Emirati patrol boat (left) is near a tanker anchored in the Gulf of Oman near the Strait of Hormuz, as seen from a coastal road near Khor Fakkan, United Arab Emirates, on May 1. (Fatima Shbair/AP)

DUBAI, United Arab Emirates — Iran established a new government agency to approve transit and collect tolls from shipping in the strait, shipping data firm Lloyd’s List Intelligence said May 7.

The move has raised concerns about eroding the freedom of navigation on which global trade depends.

The agency, called the Persian Gulf Strait Authority, is “positioning itself as the only valid authority to grant permission to ships transiting the strait,” Lloyd’s reported in an online briefing. Lloyd's said the authority had emailed it an application form for ships seeking passage.

Iran has effectively closed the strait, a vital waterway for the shipment of supplies of oil, gas, fertilizer and other petroleum products, while the U.S. is blockading Iranian ports.

The disruptions have sent fuel prices skyrocketing and rattled the global economy.

The new Iranian agency formalizes an existing, albeit murky, vetting lane that takes vessels through the strait’s northern waters near the Iranian coastline. Iran controls which ships are allowed to pass and, for at least some vessels, imposes a tax on their cargo.

Iran has announced a new permit system for the Strait of Hormuz under a so-called Persian Gulf Strait Authority. Tehran accuses Gulf states of aiding US and Israeli attacks but says it remains open to talks.

Al Jazeera’s Almigdad Alruhaid reports. pic.twitter.com/Ocurzqdxm0 — Al Jazeera English (@AJEnglish) May 5, 2026

Maritime law experts say Iran’s demands to vet or tax vessels violate international law. The United Nations Law of the Sea treaty calls for countries to permit peaceful passage through their territorial waters.

Written by Adam Schreck, David McHugh and Russ Bynum.