Iran Formalises Hormuz Transit Approvals, Vessels Pay Up to $2M in Tolls

According to Reuters, Iran established the Persian Gulf Strait Authority (PGSA) on May 8 to approve ship transits through the Strait of Hormuz and collect tolls from vessels passing through the chokepoint that carries 20 percent of global oil trade.

The PGSA circulated an application procedure requiring vessels to disclose ownership, insurance, crew manifests and intended routes. According to shipping news outlet Lloyd's List, vessels have already paid up to $2 million to obtain transit approval, with tolls settled using Chinese yuan. The move has alarmed shipowners and insurers, with the industry concerned about freedom of navigation under the new regime.