International RelationsSecurity
News 14 of 30

Iran Launches Persian Gulf Strait Authority (PGSA) to Control Strait of Hormuz Transit, Fees up to $2 Million

Intl. RelationsSecurity & DefenceHIGH
Target:UPSC GS-IIMPSCSSC GATeachingPrelims HighMains HighStatic GK Link
19 May 2026
~2 min
Source: Indian Express
Key Data:Up to $2 million transit fee40 ships crossed in week ending May 3Pre-war daily average: 120 crossings
Bodies:Persian Gulf Strait Authority (PGSA)Iran's Supreme National Security CouncilIran's Revolutionary Guards NavyUNCLOS
Practice MCQs from today's news ▸
What This Article Covers

1.Iran institutionalized control over Strait of Hormuz by launching the Persian Gulf Strait Authority (PGSA) on May 18, 2026, requiring vessels to seek approval and pay fees.

2.The PGSA demands over 40 items of information from ships, with reported fees up to $2 million per transit, payable in Chinese Yuan.

3.The move violates the UNCLOS transit passage principle, is rejected internationally, and has cut weekly crossings to 40 ships from a pre-war daily average of 120, threatening global energy flows.

The Big Picture
Prelims · HighMains · High

Iran has formalized its control over the strategic Strait of Hormuz by establishing the Persian Gulf Strait Authority (PGSA), mandating that all commercial vessels obtain Iranian clearance and pay transit fees. This move, based on unilaterally defined boundaries, directly challenges the UNCLOS principle of transit passage and has sharply reduced shipping traffic. For exam aspirants, this is a critical case study of chokepoint geopolitics, maritime law, and its impact on global energy security.

Exam Lens

Quick Exam Facts From News

Authority LaunchedPersian Gulf Strait Authority (PGSA)
Launch DateMay 18, 2026
Reported Transit FeeUp to $2 million
Payment CurrencyChinese Yuan
Weekly Crossings (May 3)40 ships
Pre-war Daily Average120 crossings

1-Minute Revision

  • ›Authority Launched: Persian Gulf Strait Authority (PGSA)
  • ›Launch Date: May 18, 2026
  • ›Target this Data: 'Up to $2 million' transit fee and '40 ships' crossed in week ending May 3, 2026.
  • ›Target this Nodal Body: 'Persian Gulf Strait Authority (PGSA)' established by Iran.
  • ›Target this Legal Point: 'UNCLOS Transit Passage Principle' (Part III) which Iran's move challenges.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The Persian Gulf Strait Authority (PGSA) has been established by Iran to manage the Strait of Hormuz. Which Iranian security body's navy promptly reshared the PGSA's announcement, indicating its backing?

Q2Statement-basedHard

Consider the following statements regarding Iran's new Strait of Hormuz policy:

1. The Persian Gulf Strait Authority (PGSA) requires vessels to provide over 40 items of information for transit clearance.

2. Iran has ratified the United Nations Convention on the Law of the Sea (UNCLOS) and its transit passage principle.

3. The reported transit fee for some vessels has been up to $2 million, payable in Chinese Yuan.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, how many ships crossed the Strait of Hormuz in the entire week ending May 3, 2026, against a pre-war daily average of 120 crossings?

Q4Application/ImpactMedium

What is the primary international legal framework that Iran's establishment of the Persian Gulf Strait Authority (PGSA) and its transit fee regime is seen to violate?

All 15 MCQs ▸
Read original article from Indian Express
You finished this topic
Practice 3 MCQs from this newsNext Article
Explore Related Topics
Intl. RelationsView Topic MCQs →Security & DefenceView Topic MCQs →
PreviousSimultaneous Elections: JPC Proposes Political Consensus on Mid-Term Polls, Amendment to Anti-Defection Law Under Constitution (129th Amendment) Bill, 2024Next Supreme Court Judges Debate UAPA Bail Curbs; Delhi Police Cite Section 43D(5) to Seek Larger Bench Reference
Related Current Affairs
Intl. Relations Current Affairs

Strait of Hormuz Control Dispute: US Patrolling, Iran Claims – Shipping Down 92% to 6 Vessels/Day

Strait of Hormuz, a critical chokepoint for 20% of global oil and LNG, remains disrupted as US and Iran dispute control. Shipping traffic is down 92% from pre-war levels, pushing oil prices to $91.79/barrel, directly impacting India's import bill and inflation.

Intl. Relations Current Affairs

Iran rial hits record low at 2.02 million/USD as US prepares fresh sanctions and Strait of Hormuz blockade

Iran's rial plunged to a record low of 2.02 million per USD as the US announced new sanctions. The war with Israel and US naval blockade have devastated Iran's economy, while Iran's control of the Strait of Hormuz threatens global oil supply. This is a critical geopolitical flashpoint with implications for India's energy security and global trade.

Intl. Relations Current Affairs

Iran-Oman Propose Joint Navigational Corridor for Strait of Hormuz; 20% Oil Transit

Iran and Oman are negotiating a framework for managing the Strait of Hormuz, through which 20% of global oil passes. The proposed joint temporary navigational corridor and mine clearance efforts are significant for global energy security, but US threats to bomb Oman highlight geopolitical tensions. For exam aspirants, this links to India's energy dependence, strategic chokepoints, and West Asia geopolitics.

Intl. Relations Current Affairs

Iran PGSA Blacklists 45 Ships Including 2 Indian Vessels for Strait of Hormuz Transit Violations

Iran's Persian Gulf Strait Authority (PGSA) has blacklisted 45 ships, including two Indian-owned vessels (Disha and Maha Roos), for violating transit rules in the Strait of Hormuz. This threatens India's energy security as 40% of crude, 60% of LNG, and 90% of LPG imports pass through the strait. Vessels now face fines, seizure, or confiscation, escalating geopolitical tensions with the US.

Intl. Relations Current Affairs

Brent Crude Falls $4.08 as Trump Halts Iran Attack for Strait of Hormuz Deal

Oil prices crashed over $4/barrel after President Trump halted a planned attack on Iran to pursue a nuclear deal. The move has de-escalated fears over Strait of Hormuz disruptions, but OPEC+ also approved a 188,000 bpd quota increase, adding downward pressure.

Intl. Relations Current Affairs

Iran's 7-Day Plan to End War: Reopen Strait of Hormuz, US to Waive Sanctions on $12B Frozen Assets

Iran proposes a 7-day plan to end the war with the US, reopen the Strait of Hormuz, and restart nuclear talks. The proposal mirrors a June MoU that collapsed. With US midterm elections approaching, the timing is critical as high fuel prices hurt Trump's approval ratings. This has direct implications for global energy markets and India's strategic interests in West Asia.

Intl. Relations Current Affairs

Strait of Hormuz Crisis: Oil Jumps 5% as Iran-US Compensation Demands Stall Reopening

Oil prices surged ~5% as hopes for reopening the Strait of Hormuz faded after Iran demanded US sanctions relief and compensation, while President Trump counter-demanded compensation from Iran for past attacks. This standoff threatens global energy supplies, especially for import-dependent nations like India, and has pushed Brent crude to $87.72/barrel.

Intl. Relations Current Affairs

Iran-Oman Negotiate Strait of Hormuz Reopening: US Disputes Iran's Proposed 'Service Fee' on 20% Global Oil Route

Iran and Oman are negotiating a framework to reopen the Strait of Hormuz, with Iran proposing a 'service fee' for vessels using its controlled lane. The US strongly opposes any arrangement that grants Iran control or revenue from the strategic waterway, creating a complex diplomatic standoff with direct implications for global energy security and India's oil imports.

Start Today's Quiz(15 Qs)