TEHRAN — Iran's Supreme National Security Council announced the formation of the Persian Gulf Strait Authority to oversee shipping through the Strait of Hormuz. The new body would provide real-time updates on operations and the latest developments in the waterway, through which 20 percent of the world's oil and gas pass in peacetime.

Iran is planning to provide insurance for vessels transiting the strait and surrounding Gulf waters, with payments settled in cryptocurrency. The proposal includes a range of maritime insurance products and encrypted verification capability, with transactions expected to be conducted using cryptocurrencies such as Bitcoin. The Hormuz Safe website has begun offering insurance for maritime cargoes passing through the strait. The programme could bring in more than $10 billion in revenue for Iran annually.

Iranian officials and lawmakers have floated the idea of imposing transit charges or security fees on ships using the strait since February 28, 2026. Tehran has admitted receiving tolls from ships attempting to make their way through the waterway, and in March 2026 began collecting ad hoc transit fees from some commercial vessels, with payments reportedly reaching as much as $2 million per voyage. Iran has said that charging a toll or transit fee would help pay for repairs needed following nearly six weeks of US-Israeli bombing of the country.

Iran has effectively closed the strait in retaliation for US-Israeli attacks, disrupting global energy markets and largely preventing oil tankers from passing through. Since April 13, 2026, the United States has implemented a naval blockade of all ships coming from or going to Iranian ports. The U.S. Department of State said that international waterways must remain open to global shipping and that no country should impose unilateral tolls on transit passage, and warned companies that payments to Iran for safe passage could expose them to sanctions.

The White House said Xi Jinping made clear China's opposition to militarisation of the strait and any effort to charge a toll for its use. UN Secretary-General Antonio Guterres called for an immediate opening of the strait without tolls or discrimination. Under the United Nations Convention on the Law of the Sea, levies cannot be charged on ships sailing through international straits or territorial seas.

Global maritime insurers have sharply increased war-risk premiums for ships entering the Gulf since February 28, 2026. Gard, Skuld, NorthStandard, and the American Club cancelled war-risk coverage for vessels operating in the Gulf region within days of the war starting. Chubb joined a $20 billion US-supported maritime reinsurance programme aimed at restoring commercial shipping through the strait, offering war-risk cover for hulls, cargo, and liability. Several shipping operators continue avoiding Gulf routes, citing crew safety risks and fears of attacks and seizures.

"Marine insurance requires large reserves and international reinsurance support to cover catastrophic losses, yet sanctions severely restrict Iran's access to global financial and insurance markets," said Abdul Khalique, head of the Liverpool John Moores University Maritime Centre. "Without credible reinsurance, shipowners may doubt whether claims would actually be paid after accidents, spills, or seizures."

Khalique said acceptance of the scheme would be limited. "Acceptance of the Iranian insurance plan for the Strait of Hormuz, if any, is likely to be limited and highly selective," he said. "Countries already wary of Western sanctions, such as China or some smaller trading states, may consider Iranian insurance if it lowers costs or guarantees passage through the Strait of Hormuz." No country or shipping firm has announced whether they would take up Iran's offer to provide insurance to cross the strait.