Iran Strengthens Control Over Hormuz Strait With New Authority and Toll System Iran has intensified its grip on the strategic Strait of Hormuz by establishing a new authority to manage checkpoints and impose tolls on maritime traffic. This move comes amid ongoing tensions with the United States and aims to bolster Iran’s economic and geopolitical influence in the region. The Persian Gulf Strait Authority (PGSA), a newly formed body, oversees the regulation of vessels passing through the strait, collecting fees and gathering data on cargo, flags, and destinations. The initiative includes the implementation of tolls on ships, with some vessels facing fees as high as two million dollars. Iran’s goal is to generate $10 billion in revenue annually through this system, which also serves to assert its dominance over the critical waterway. The strait, a vital route for global oil shipments, sees approximately 20% of the world’s crude oil transit through its waters. Iran’s actions have disrupted the flow of maritime traffic, with reports indicating a significant decline in the number of ships passing through the strait compared to pre-conflict levels. A notable example of the toll system’s impact is the case of the tanker Agios Fanourios-I, which was detained near Dubai in April 2023. After negotiating a deal with Iran, the vessel was allowed to proceed through the strait, but its journey took two days instead of the usual five hours. Analysts note that the number of ships traversing the strait dropped sharply during this period, with fewer than 60 vessels passing through between April 18 and May 6, compared to the pre-war average of 120-140 ships per day. The toll system has also contributed to rising oil prices, as uncertainty and delays in shipping routes have disrupted global markets.#iran #united_states #strait_of_hormuz #persian_gulf_strait_authority #agios_fanourios_i
