The U.S. Treasury Department added the Persian Gulf Strait Authority (PGSA) to the Office of Assets Control’s sanctions list, citing its links to Iran’s Islamic Revolutionary Guard Corps (IRGC).
The sanctions prohibit shipowners from arranging transits with PGSA or paying any tolls or fees to the organization, aiming to deter Iran’s attempt to monetize passage through the Strait of Hormuz.
Iran created the PGSA in early May 2026 to formalize control over Hormuz, claiming jurisdiction from the port of Umm Al Quwain in the United Arab Emirates to Kuh‑e‑Mobarak in Iran.
President Donald Trump dismissed reports of an unofficial draft agreement between Iran and Oman to jointly manage Hormuz traffic, reiterating that the waterway is international and open to all.
Since late February 2026, Iran has effectively blocked Hormuz, disrupting roughly one‑fifth of global oil supplies and causing sharp increases in oil prices; broader shipping disruptions have also impacted global economic activity.
Recent hostilities resumed this week with air strikes between the United States and Iran, undermining an early‑April ceasefire and making a near‑term reopening of Hormuz unlikely.
