Middle East Conflict: Iran Places 'watchman' On Strait Of Hormuz; BIG Step By IRGC

Tehran: Iran has established a new organization to oversee the critical Strait of Hormuz. Iran's Supreme National Security Council officially announced this development. Approximately 20 percent of the world's energy supply passes through this strait. On May 6, Iran created this new entity, named the Persian Gulf Strait Authority (PGSA). The Security Council stated that this new organization will provide real-time updates regarding activities and incidents occurring within the Strait of Hormuz. Ebrahim Azizi, Head of the National Security Committee of the Iranian Parliament, stated that Iran has established a professional mechanism to manage maritime traffic.

What does this Iranian move entail?

It remains unclear exactly what functions the new organization will perform; however, an Iranian broadcaster reported that this entity serves as a mechanism to assert Iran's sovereignty over the Strait of Hormuz. Terms and conditions are currently being sent to vessels via email. Iran has announced that ships transiting through the Strait of Hormuz will be required to pay a toll. Strait Closed Amid Tensions: Since the attacks carried out by the United States and Israel on February 28, Iran has halted most shipping traffic through the Strait of Hormuz.

Why is the Strait of Hormuz Important?

It is worth noting that the Strait of Hormuz is one of the world's most critical maritime routes. It connects the Persian Gulf to the Arabian Sea and the Indian Ocean. Its primary significance lies in the fact that a substantial portion of the world's oil and gas supplies passes through this channel. Crude oil from major oil-producing nations—such as Saudi Arabia, Iraq, Kuwait, the UAE, and Iran—reaches various countries across the globe via this waterway. Estimates suggest that approximately 20 percent of the world's seaborne oil trade transits through the Strait of Hormuz. Consequently, it is often referred to as the "lifeline" of the global energy supply. Furthermore, this region is strategically highly sensitive; Iran has repeatedly warned that it could block this waterway should tensions escalate. If this happens, oil prices worldwide could rise sharply, and it could have a major impact on the global economy.