Iran has brought a new authorization system for ship passage through the Strait of Hormuz fully online, making transit contingent on permits issued via a round-the-clock digital platform, state media reported on June 2. The move formalizes Iranian control over one of the world’s most strategic energy chokepoints and adds a new layer of regulatory and political risk for global shipping and energy markets.
New online system now required for passage
The managing authority, the Persian Gulf Strait Authority, has launched an online portal through which shipping companies and captains must submit documentation to secure passage. Applications can be filed at any time and are reviewed electronically before a vessel is granted permission to navigate the strait.
Iran describes the system as an exercise of sovereign governance. Under the framework, vessels are expected to follow designated corridors, with Tehran warning that any deviation will be regarded as unsafe.
Critical energy route under tighter control
The Strait of Hormuz remains one of the most important maritime arteries in the world, historically carrying about 20% of global petroleum liquids, estimated at roughly 20 million barrels per day, and a fifth of global liquefied natural gas (LNG) trade.
The recent conflict that began on February 28, 2026, involving the United States and Israel, caused a severe collapse in traffic through the strait. Daily vessel crossings fell by more than 95% from pre-war levels, removing over 80 million tonnes per annum of LNG from global markets, or about 20% of worldwide supply.
Iran’s permit system is being introduced against this backdrop of disrupted flows, elevated price volatility, and heightened geopolitical tension.
Washington rejects move, issues sanctions
The United States has rejected the new framework as an illegitimate attempt to control a waterway governed by international transit passage rules.
The U.S. Treasury Department has sanctioned the Persian Gulf Strait Authority, characterizing the permit scheme and related fees as a form of “extortion” intended to funnel funds to the Islamic Revolutionary Guard Corps (IRGC).
In response, the IRGC has said it is carrying out “intelligent control” over the strait and has reiterated that ships must adhere strictly to assigned routes.
Traffic slowly resumes, but far below normal
Iranian figures show a tentative uptick in movements under the new system. The IRGC reported that 28 commercial ships, including oil tankers and container vessels, transited the strait in a 24-hour period after securing permits.
This remains well below pre-conflict activity, when an average of 138 vessels crossed daily. Overall traffic levels are still a fraction of historic norms, underscoring continued caution and uncertainty among maritime operators.
Energy markets stay volatile amid negotiations
The disruption to Hormuz flows has fed into global energy price swings. Brent crude, which climbed above $120 a barrel at the height of the crisis in March, has since pulled back but remains volatile, recently trading below $95 a barrel as markets weigh mixed signals from reported U.S.-Iran talks.
Diplomatic efforts are said to be focused on restoring more predictable access to the strait, but there is no clear timeline for a full normalization of transit conditions.
Compliance dilemma for global shipping
The operational launch of the permit system creates a complex compliance landscape for maritime and energy market participants. Ships seeking to move through the strait now face a choice between:
- adhering to requirements imposed by an Iranian authority that is under U.S. sanctions, or
- avoiding the system and risking denial of passage or confrontation in a militarized environment.
This dual pressure increases legal, operational, and financial risks. Reports suggest that fees may be levied as part of the authorization process, adding to already elevated insurance premiums and rerouting costs.
Elevated risk premiums likely to persist
For crude, product, LNG, and container trades exposed to the Persian Gulf, the new bureaucracy effectively embeds geopolitical tension into day-to-day operations. Market participants are likely to maintain high-risk premiums, reflecting:
- the possibility of renewed traffic shutdowns,
- uncertainty over how strictly Iran will enforce the system, and
- potential secondary sanctions exposure tied to dealing with the Persian Gulf Strait Authority.
With the situation “fluid,” according to regional sources, close tracking of diplomatic developments, especially U.S.-Iran negotiations, will be critical. Any shift in the legal status or practical enforcement of the permit regime could quickly alter shipping flows, freight rates, and energy prices.
In the near term, traders face a landscape defined by administrative hurdles layered onto a fragile security environment, where a single incident or policy shift could again disrupt one of the world’s key maritime corridors.
For deeper insight into cross-border digital finance, explore our guide on central bank digital currencies and shifting global payment infrastructure.
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