Full Breakdown
Iran's New Strait of Hormuz Agency and the Pause of U.S. “Project Freedom”
5/8/2026, 11:28:03 AM
Iran Establishes Persian Gulf Strait Authority
Iran created a government agency called the Persian Gulf Strait Authority (PGSA) to approve transit and collect tolls for vessels passing through the Strait of Hormuz. Lloyd’s List Intelligence reported the agency emailed an application form to shipping firms. The move formalizes a pre-existing vetting lane along Iran’s northern coast and has raised concerns that it violates the United Nations Convention on the Law of the Sea, which guarantees innocent passage.
Background to the Shipping Standoff
The conflict began on 28 February when U.S. and Israeli forces struck Iranian targets, prompting Iran to close the strait. A ceasefire held from 8 April, but both sides maintain blockades: the U.S. blocks Iranian ports, while Iran threatens mines, drones and fast-attack boats. Pakistan has been mediating peace talks, but no agreement has been reached.
Scale of the Disruption
Shipping data firms estimate roughly 1,500 commercial vessels and about 20,000 seafarers are stranded in the Persian Gulf. The strait carries about one-fifth of global oil and gas supplies and one-third of seaborne fertilizer. Fuel prices have spiked, and Gulf economies lose an estimated $700 million daily in lost oil revenue.
Official Statements & Responses
U.S. President Donald Trump announced the launch of “Project Freedom” to escort stranded ships, then paused it, citing “great progress” in negotiations. Secretary of State Marco Rubio said the operation aimed to rescue 23,000 civilians on 87-nation vessels and warned that Iran must cease attacks. Defense Secretary Pete Hegseth called the effort “laser-focused” and temporary. Iranian Foreign Ministry spokesperson Esmail Baghaei said Tehran is reviewing U.S. proposals via Pakistan and has not yet responded. President Masoud Pezeshkian praised Supreme Leader Mojtaba Khamenei’s “sincere” role in the talks. Pakistani Foreign Minister Ishaq Dar and Prime Minister Shehbaz Sharif expressed optimism that a deal would be reached soon. Saudi Arabia’s unnamed official rejected U.S. use of Saudi bases for the operation.
Criticism & Opposition
The IRGC warned that any vessel deviating from Iran-approved corridors would face a “firm response.” Saudi officials said they would not support U.S. force to reopen the strait. Maritime law experts argue that Iran’s tolls and vetting breach international law.
Conflicting Reports & Gaps
Sources differ on the exact number of trapped ships—Lloyd’s List cites 1,500 vessels, while NBC reports 1,000. Casualty figures also vary: the International Maritime Organization reports at least 10 seafarer deaths, whereas the UN Maritime Organization mentions 10 civilian sailors killed. Iran and the U.S. provide conflicting accounts of recent attacks on commercial vessels.
Verbatim Quotes
- “We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom ... will be paused for a short period of time to see whether or not the Agreement can be finalized and signed,” — Donald Trump, President of the United States
- “Maritime law experts say Iran's demands to vet or tax vessels violate international law.” — Maritime law expert (unnamed, cited by Lloyd’s List)
- “We warn all vessels planning to transit the Strait of Hormuz that the only safe passage is the corridor previously announced by Iran.” — IRGC statement, state television
- “We hope the parties will reach a peaceful and sustainable solution that will contribute not only to peace in our region but to international peace as well.” — Tahir Andrabi, Pakistani Foreign Ministry spokesperson
What’s Next
The United Nations Security Council is drafting a resolution that would condemn Iran’s control of the strait and could impose sanctions. Iran’s PGSA is expected to issue further guidelines, while the U.S. may resume Project Freedom if negotiations stall. Mine-clearance efforts and a UN-led humanitarian corridor are also being discussed as prerequisites for any large-scale reopening of the waterway.
