Iran just did the thing everyone in energy markets has feared for decades. The Persian Gulf Strait Authority, a regulatory body Iran established barely five weeks ago, announced a full closure of the Strait of Hormuz to all vessel traffic on June 10, citing escalating tensions with the United States.
About one-fifth of the world’s oil supply flows through that narrow waterway.
What the PGSA actually is, and why it matters
Iran created the Persian Gulf Strait Authority on May 5, 2026. Its stated purpose: regulating maritime traffic through the Strait of Hormuz by requiring vessels to obtain permits, submit to inspections, and pay fees before transiting.
Since late April, over 300 non-Iranian vessels have engaged with the PGSA’s permit system.
