Senator Tom Cotton is pushing the US Treasury to sanction Iran’s newly created Persian Gulf Strait Authority, the entity now charging tolls on ships passing through the Strait of Hormuz. In a letter to Treasury Secretary Scott Bessent, the Arkansas Republican called for sanctions on the PGSA, its officers, and any foreign companies involved in processing the fees.
The Strait of Hormuz is arguably the most important chokepoint in global energy. Roughly a fifth of the world’s oil supply passes through it daily. Iran just put a toll booth on it.
What Iran built, and why Cotton wants it dismantled
The PGSA was established on May 5, 2026, under the umbrella of the Islamic Revolutionary Guard Corps. It became operational around May 18. Within days, Cotton had his letter drafted and sent.
The setup works like this: vessels transiting the strait are now expected to pay fees to the PGSA for passage. Iran created a maritime regulatory body, staffed it with IRGC-linked personnel, and started collecting money from ships that have navigated these waters freely for decades.
