Iran sets up 'Persian Gulf Strait Authority' (PGSA) for Hormuz transit fees — official channel against crypto fraud

After Iran announced in March a plan to charge fees for safe passage through the Strait of Hormuz, fraud attempts demanding payment in crypto in exchange for fake documents rose sharply. To address the problem, Tehran has announced the establishment of a new official body named the "Persian Gulf Strait Authority (PGSA)."

According to Iranian state media, ships seeking to transit the Strait of Hormuz will receive an official notification from PGSA's designated email address. After shipowners complete the prescribed procedures, transit permits will be issued. The new authority is said to aim at building a verifiable communication channel between shipowners and the Iranian Revolutionary Guard Corps (IRGC).

The application remains controversial under international law. Iran's demand for tolls in a strait of international status has drawn legal criticism, and the U.S. administration has warned that it could impose sanctions on individuals or entities making payments to Iran in this context. The earlier warning from EU High Representative Kaja Kallas that the strait "must remain open free of charges" summarises the political stance of member states.

In parallel, the United States continues the Freedom Project, designed to provide security for commercial vessels transiting via Omani waters; offered free of charge, the initiative stands as an alternative model in direct conflict with Iran's approach. Tuesday's reported UKMTO missile strike on the CMA CGM San Antonio shows that the tension between Iran's unilateral imposition and multiple international trade actors continues to feed into P&I insurance and war risk premium structures.

Key Takeaways:
1. Iran has set up an official body called the Persian Gulf Strait Authority (PGSA) for Hormuz transit fees.
2. After the March fee plan, crypto fraud against shipowners rose; PGSA is intended to close this gap.
3. Transit permits will be issued via an email-based procedure; the authority aims to build a verified channel with the IRGC.
4. The U.S. has warned of sanctions on those paying Iran, and EU's Kaja Kallas earlier said 'the strait must remain open free of charges.'
5. The U.S.-run Freedom Project via Omani waters provides a competing model, even as a CMA CGM vessel was reported attacked in the Strait on Tuesday.