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Iran Defines New Strait of Hormuz Regulatory Zone, Impacts Global Trade

· · 3 min read

Iran has announced a new regulatory framework for the Strait of Hormuz, establishing the Persian Gulf Strait Authority (PGSA) to oversee transit. This creates a 'management supervision area' in the crucial waterway, impacting global oil and gas trade.

Iran has formally established a new regulatory framework for the Strait of Hormuz, a critical maritime chokepoint, and introduced the Persian Gulf Strait Authority (PGSA) to manage transit within the region. This significant development comes amid heightened geopolitical tensions in West Asia and growing international concerns over maritime security in the Gulf.

Defining the New Management Supervision Area

According to statements released by the newly formed PGSA, Iran has delineated a specific “management supervision area” encompassing parts of the Strait of Hormuz and its adjacent waters. This regulated maritime zone extends from:

  • Kuh-e Mubarak in Iran to southern Fujairah in the UAE, marking the eastern entrance of the strait.
  • The tip of Iran’s Qeshm Island to Umm Al-Quwain in the UAE, at the western entrance.

The authority has also stated that all vessels utilizing communication frequencies within this newly defined maritime range will now require coordination with Persian Gulf waterway management authorities and must obtain permits issued by the PGSA.

Understanding the Persian Gulf Strait Authority (PGSA)

The Persian Gulf Strait Authority appears to be a new Iranian maritime management body with the mandate to supervise navigation, coordinate communications, and manage transit within the Strait of Hormuz. While a detailed charter outlining its full legal powers, organizational structure, or international status has not yet been publicly released, the announcement signifies Tehran's intention to formalize and assert its oversight role in one of the world's most vital energy corridors.

The Strategic Importance of the Strait of Hormuz

The Strait of Hormuz is a narrow maritime passage situated between Iran and Oman, serving as the primary conduit for crude oil and liquefied natural gas exports from major Gulf producers such, as Saudi Arabia, Iraq, Kuwait, the UAE, and Qatar. Approximately one-fifth of the world’s oil trade, equivalent to about 20 million barrels daily, transits through this waterway.

At its narrowest point, the strait is only about 33 kilometers wide, rendering shipping lanes highly sensitive to any military or regulatory disruptions. Any restrictions, delays, or security incidents in this region can have profound and immediate impacts on global oil prices, shipping insurance costs, and international supply chains.

International Law and Jurisdiction Questions

Iran’s declaration is expected to ignite an international debate concerning maritime jurisdiction and navigational rights under existing international law. The United Nations Convention on the Law of the Sea (UNCLOS) generally grants “transit passage” rights through straits used for international navigation, allowing ships and aircraft to move without interference, provided they adhere to international regulations.

However, Iran has historically maintained that foreign military vessels must seek permission before transiting through its territorial waters within the Strait of Hormuz. This position has been consistently disputed by several Western nations, including the United States. As of the announcement, the UAE has not yet issued a public statement regarding Iran’s new regulatory zone.

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