Iran's Control Over the Strait of Hormuz
Iran has institutionalized its control over the Strait of Hormuz by establishing the Persian Gulf Strait Authority (PGSA). This move mandates that no vessel may transit the strategic waterway without Iran's explicit approval.
Key Developments
- The PGSA was announced through Iran's Supreme National Security Council's social media account, indicating a formalization of control over the Strait of Hormuz.
- The authority's first post emphasized its role in providing real-time updates on operations and developments related to the strait.
- Iran’s Revolutionary Guards Navy supported this announcement, confirming their backing of the authority.
Requirements for Passage
- The PGSA is the legal entity responsible for managing transit through the Strait on behalf of Iran.
- Shipping companies are required to submit over 40 pieces of information including ship identification, origin, destination, cargo, and crew details.
- A steep fee is implied, with reports of some vessels paying up to $2 million per transit, paid in Chinese yuan.
- Navigation within boundaries set by Iranian authorities demands full coordination with Iran’s armed forces. Unauthorized passage is illegal.
International Reactions
- Ebrahim Azizi, chairman of Iran’s National Security Committee, stated that only vessels cooperating with Iran would benefit, excluding US-led initiatives.
- The international community, including the US, Gulf states, and European nations, rejected Iran’s control and fee imposition as it conflicts with the United Nations Convention on the Law of the Sea (UNCLOS).
- Under UNCLOS, the Strait of Hormuz falls under the transit passage principle, which Iran signed but did not ratify.
Impact on Global Trade
- The number of ships crossing the strait has significantly reduced, with only 40 crossings in the week ending May 3, compared to a pre-war daily average of 120.
- Approximately one-fifth of the world’s seaborne oil and LNG usually passes through this chokepoint, raising concerns about long-term impacts on global energy markets.
Authored by Utkarshini Gupta, Intern at The Indian Express.
