Iran Makes Moves to Assert Control Over the Strait of Hormuz

Key Points:

• Iran has established a new insurance company dedicated solely to the Strait of Hormuz and introduced a mandatory Iranian insurance policy for vessels, currently free of charge, signaling efforts to assert control over the waterway.
• The Persian Gulf Strait Authority, created by Iran in May, has required vessels to register and sign up for this new insurance, potentially setting a precedent for charging fees on transit through the strait, which was previously free.
• Experts view these moves as Iran’s attempt to strengthen its control and generate revenue from the Strait of Hormuz, complicating an already sensitive geopolitical and shipping environment.
• These developments come amid ongoing negotiations between the U.S., Iran, Oman, and other Gulf nations to manage and secure the strait, with a recent memorandum of understanding aiming to end conflict and reopen the waterway.
• Shipping experts warn that Iran’s new insurance demands create uncertainty and could disrupt global shipping, as the situation in the Strait of Hormuz enters "uncharted territory."