What they're not telling you: # Iran Creates New Authority Claiming Control Over 22,000 Square Kilometers of hormuz-corridor-trump-says-warships-came-unde.html" title="US Conducts New Iran Strikes Along Hormuz Corridor - Trump Says Warships Came Under Fire By 'Lunatics'" style="color:#1a1a1a;text-decoration:underline;text-decoration-style:dotted;font-weight:500;">hormuz-deserted-as-iran-expands-area-of-control-hundreds-of-ships-cluster-near-d.html" title="Hormuz "Deserted" As Iran Expands Area Of Control; Hundreds Of Ships Cluster Near Dubai" style="color:#1a1a1a;text-decoration:underline;text-decoration-style:dotted;font-weight:500;">Hormuz Strait; U.S. Officials Say Diplomacy at Stake Iran has established a new government agency claiming military control over an area of the Strait of Hormuz larger than the state of Massachusetts, and is actively negotiating with neighboring Oman to institute a toll system on international shipping transiting the waterway. The newly-created "Persian Gulf Strait Authority" published a map this week declaring "Iranian armed forces oversight" across more than 22,000 square kilometers (8,800 square miles) of the strategic chokepoint.
What the Documents Show
According to the authority's announcement, "all transit through the strait requires coordination with and authorization from the Persian Gulf Strait Authority." The Strait of Hormuz handles approximately one-third of global maritime petroleum trade, making any constraint on passage a matter of immediate consequence for international energy markets and commerce. Iran's ambassador to France, Mohammad Amin-Nejad, has stated that Iran and Oman are in active discussions to establish a permanent toll structure. In comments attributed to him by Bloomberg, Amin-Nejad framed the toll as compensation for security and environmental services: "Iran and Oman must mobilize all their resources both to provide security services and to manage navigation in the most appropriate manner, prevent pollution, and simply strive to establish an order so that global trade is not subject to disruptions. This will entail costs, and it goes without saying that those who wish to benefit from this traffic must also pay their share." He characterized the eventual fees as "clear, transparent, reasonable, and logical," though the system has not yet been formally implemented. An initial toll proposal circulated by Iran reportedly reached $2 million per tanker, with some shipping companies reportedly already paying the amount to secure passage of stranded vessels.
Follow the Money
Iran has also indicated that China and South Korea have engaged in direct communication to arrange passage of their respective vessels through the strait. Secretary of State Marco Rubio has publicly stated that if Iran implements such a toll system, diplomacy would be rendered "impossible." The United States has made explicit that international vessels should not comply with Iran's claimed authority over the expanded zone. The timing of Iran's move coincides with ongoing discussions over peace negotiations, according to reporting on the situation. The Islamic Revolutionary Guard Corps Navy appears to be using its control over tanker flow through the strait as a lever in broader political negotiations, according to available accounts. The practical effect, regardless of stated intentions, is that Iran now claims the authority to inspect and authorize—or deny—passage of commercial shipping through one of the world's most critical maritime corridors. Whether other nations recognize this claimed authority remains an open question that will shape the immediate future of global oil transport and shipping insurance costs.
Primary Sources
- Source: ZeroHedge
- Category: Unexplained
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