The US Treasury just went after Iran’s latest attempt to monetize one of the most important chokepoints in global energy markets. On May 27, the Office of Foreign Assets Control designated Iran’s Persian Gulf Strait Authority, an entity tied to the Islamic Revolutionary Guard Corps, for what Treasury Secretary Scott Bessent called “desperate attempts to extort global maritime trade.”
The PGSA was reportedly set up in mid-May 2026 to regulate shipping and collect transit fees in the Strait of Hormuz. That narrow waterway handles roughly 20% of global oil supply.
What the PGSA actually is and why it matters
The designation falls under Executive Order 13224, the same legal framework used to target terrorist financing networks. By linking the PGSA directly to the IRGC, the Treasury is making a clear statement: any entity, military or civilian, that engages with the authority now faces the risk of secondary sanctions.
The PGSA reportedly emerged sometime between May 1 and May 18, positioning itself as a regulatory body with authority over one of the most strategically sensitive waterways on the planet. The Treasury views this as a blatant violation of international law, characterizing the transit fees as extortion rather than legitimate governance.
