Iran has imposed a unilateral mandate requiring all foreign vessels to use state-designated routes when transiting the Strait of Hormuz, a chokepoint for roughly 20% of global oil supply.
The Islamic Revolutionary Guard Corps Navy now demands foreign ships acquire passage permits and Iran-approved insurance. The new directives force traffic closer to Iranian shores near Larak Island, effectively dismantling the internationally recognized Traffic Separation Scheme designed for safe navigation.
Deputy Foreign Minister Kazem Gharibabadi stated maritime safety cannot be assured without strict compliance, framing the move as a response to a recent vessel attack and long-standing concerns over uncoordinated shipping.
The immediate market consequence will likely manifest in soaring war-risk insurance premiums. Elevated costs for shippers transiting between major crude exporters-including Saudi Arabia, Iraq, Kuwait, and the UAE-will inevitably cascade down to global energy prices.