The measure, framed by Tehran as a safety and liability requirement, has raised alarm across shipping, insurance and energy markets because it appears to test the limits of international navigation rights while giving Iran a mechanism to influence traffic through a corridor carrying roughly a fifth of global oil flows and a major share of liquefied natural gas exports.
The new terms require ships to register with Iran’s Persian Gulf Strait Authority at least 48 hours before transit, submit voyage details, obtain route clearance and take out an approved insurance policy. The insurance cover is being offered without charge during an initial 60-day negotiation window, but Iranian officials have indicated that fees could follow once the grace period expires.
US officials have sought to portray the passage of vessels as evidence that the strait is not under Tehran’s unilateral control. Commercial tracking showed traffic improving from the near-paralysis seen during the crisis, though flows remain well below normal levels. Before the confrontation, more than 100 ships a day could move through the broader Hormuz corridor; crossings have only begun to recover in limited numbers.
The dispute has shifted from an immediate military blockade to a legal and commercial contest over who can set the rules for one of the narrowest and most strategically important maritime passages in the world. Iran says the measures are needed to manage mine risks, collision hazards, environmental exposure and security threats after months of disruption. Shipowners and insurers view the arrangement as a potential toll system under another name.
The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. Tankers carrying crude from Saudi Arabia, Iraq, Kuwait, Qatar and the UAE rely on the route, while Qatar’s LNG trade has few practical alternatives at comparable scale. Energy traders are watching the new regime closely because even modest delays in approvals, insurance documentation or military clearance can ripple through freight rates, war-risk premiums and crude benchmarks.
Legal specialists say Iran’s position rests on a contested interpretation of coastal-state authority. The waterway passes through the territorial waters of Iran and Oman, but it is also treated by many maritime powers as an international strait where transit passage should not be impeded. Iran has not ratified the UN Convention on the Law of the Sea and has long taken the position that prior approval can be required in its waters, particularly for certain categories of vessels.
That gap between legal claims and operating reality has become more important as naval risk rises. Shipowners are not only assessing what the law permits but whether captains, crews and insurers can safely ignore Iranian instructions. Even where maritime lawyers argue that permission should not be needed, a vessel facing warning shots, jamming, inspections or denial of safe routing may have little commercial appetite for confrontation.
Insurance has become the central lever. War-risk premiums for the Gulf had already climbed during the crisis, and underwriters have demanded tighter route discipline, stronger tracking compliance and clearer security guarantees. A mandatory policy issued or approved by Tehran could complicate existing cover, especially for vessels linked to Western banks, sanctioned cargoes or ports under close regulatory scrutiny.
The United States has rejected any attempt to turn Hormuz passage into a paid permission system and has warned that freedom of navigation remains a core interest. At the same time, Washington has avoided presenting the quiet passage of ships as a full return to normal, with mine-clearance operations, naval patrols and diplomatic channels still shaping the pace of recovery.
Gulf governments are taking a cautious line. Producers want exports restored without giving formal recognition to a permanent Iranian gatekeeping role. Some have reopened tenders and prepared cargo schedules, but shipping desks are still factoring in delays, escort options and the possibility that Tehran could tighten approvals if talks stall.
Follow Arabian Post
Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.
