• Iran's newly formed Persian Gulf Strait Authority (PGSA) now requires vessels to submit transit requests at least 48 hours in advance, marking a formal tightening of control over the strategic chokepoint.
  • The regime mandates detailed data submission and compliance with designated corridors, with the IRGC warning of enforcement actions for violations.
  • Shipping costs, insurance premiums, and transit times are expected to rise as the industry adapts to the added bureaucratic layer, potentially affecting global oil flows.

Iran's newly established Persian Gulf Strait Authority (PGSA) has introduced a mandatory prior-authorization system for vessels transiting the Strait of Hormuz, according to people familiar with the matter. Ships must now submit transit requests at least 48 hours in advance, providing detailed information on ownership, cargo, and crew. The move, which replaces previously informal procedures, signals Tehran's push to assert sovereign governance over the waterway.

“This is a significant escalation in Iran's control over the Strait,” said a Gulf-based shipping analyst, speaking on condition of anonymity due to the sensitivity of the matter. “The PGSA is essentially creating a regulatory framework that could be used to monitor, delay, or deny passage at will.” The authority has begun issuing electronic transit permits and updated passage rules, with compliance monitored by the Islamic Revolutionary Guard Corps (IRGC) maritime forces.

Industry participants are bracing for higher costs and potential delays. “Carriers and insurers are reassessing risk premia,” a London-based maritime insurance broker said. “The added administrative step and the risk of enforcement actions will inevitably feed into freight rates and insurance premiums.” Small and mid-size operators may be disproportionately affected by the data submission requirements.

The new regime comes amid heightened US-Iran tensions over freedom of navigation in the region. “Tehran is signaling that it can disrupt global energy flows if pressed,” a Western diplomat commented. Discussions on maritime security arrangements and alternative routes are likely to gain urgency.

Iran has long sought greater control over the Strait, through which about 20% of the world's oil passes. Past episodes of increased regulation have been informal or sporadic; the PGSA formalizes the governance framework. Market participants expect a period of regulatory clarifications and industry adaptation in the short term, with freight markets pricing in higher transit risk.

Correction: An earlier version of this article incorrectly stated the advance notice requirement as 24 hours. It is 48 hours.