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Persian Gulf Strait Authority Says Vessels May Transit Hormuz Without Fees During 60-Day Window

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Iran's recently created Persian Gulf Strait Authority said in a social media post on Friday that vessels may pass through the Strait of Hormuz without fees during 60 days of negotiations between the US and Iran, following a draft peace plan signed by the two countries this week.

The Iranian government will bear the costs of security, safety, environmental services, and insurance.

"During the 60-day period, tariffs for security, safety and environmental services as well as related Iranian insurances, will not be collected from shipowners and will be borne by the government of the Islamic Republic of Iran," according to a PGSA letter dated Thursday and shared on X.

The authority also said that vessels seeking to cross the channel should submit a request at least 48 hours before the desired departure time.

"Due to the presence of mine-affected areas and the necessity of ensuring safe passage and preventing collisions, coordination of the designated route and scheduled passage time for each vessel prior to moving toward the strait is mandatory; failure to comply shall be the responsibility of the vessel owner," the letter stated.

According to a Lloyds List report, the authority's instructions and mandatory insurance challenge the agreement between the US and Iran, with the latter having confirmed that fees may be charged after the negotiation period.

The terms, circulated to industry participants and submitted to the International Maritime Organization on Friday, represent Iran's strongest move yet to influence shipping conditions through one of the world's most strategically important maritime routes, Lloyds List reported.

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