Above photo: Nurphoto/Getty Images.
Reports over the weekend had said Iran was launching a crypto-based insurance platform for passage through the strait.
Which remains closed to the US and Israel.
The Islamic Republic has officially launched a new body to oversee its management of the Strait of Hormuz, formalizing its demand that the waterway come under Iranian jurisdiction following the start of the US-Israeli war.
The body, labeled the Persian Gulf Strait Authority (PGSA), made its first post on 18 May.
In the Name of God
The official X account of the Persian Gulf Strait Authority (#PGSA) is now live.
Follow us for real‑time updates on the #Hormuz_Strait operations and latest developments.— PGSA | نهاد مدیریت آبراه خلیج فارس (@PGSA_IRAN) May 18, 2026
“In the Name of God. The official X account of the PGSA is now live. Follow us for real‑time updates on Strait of Hormuz operations and latest developments,” the post stated.
The statement has also been carried by Iran’s Supreme National Security Council and the navy of the Islamic Revolutionary Guard Corps (IRGC).
The mechanism will be jointly managed by Tehran and the Sultanate of Oman.
“Our action in the Strait of Hormuz is entirely legitimate. We are in continuous contact with Oman and other relevant parties and are engaged in negotiations to develop a mechanism that will achieve this objective,” Iran’s Foreign Ministry spokesman Esmail Baghaei said earlier on Monday.
“The Strait of Hormuz is a highly important waterway for the entire world. Iran has always made extensive efforts to safeguard secure passage through the route and remains committed to ensuring that navigation is carried out with full safety. The strait lies within the waters of Iran and Oman and that the two littoral countries consider themselves responsible for ensuring safe transit for all nations,” Baghaei added.
He stressed that Iran’s decision on the strait is “legitimate” and “permissible under international law,” particularly in the aftermath of the illegal US-Israeli war waged against the Islamic Republic. “It is natural for any coastal country to receive payments for services it provides. The core issue is ensuring secure navigation and taking measures to preserve national security.”
Baghaei also said that talks with Oman on a joint mechanism are ongoing, following meetings between Iranian and Omani officials on the matter in Muscat days ago.
Monday’s announcement comes a day after Iran’s Fars News Agency reported, citing a government document, that Tehran is launching a digital insurance platform, titled Hormuz Safe, in order to guarantee safe passage through the Strait of Hormuz and provide coverage for commercial vessels.
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Iran has created an Insurance Company to guarantee safe passage through the Strait of Hormuz
Vessels pay their Insurance Premiums in Bitcoin
This move will hurt the World’s largest Marine insurers pic.twitter.com/80iGCqmnKW
— Iran Observer (@IranObserver0) May 16, 2026
The platform will rely on cryptocurrency payments from vessels and is being advanced by the Iranian Economy Ministry, according to the report. The ministry estimates that “this approach, while assuming low risk, would generate over $10 billion in revenue” for Iran.
Since the start of the illegal US-Israeli war on the Islamic Republic, the Strait of Hormuz has been closed to Washington and Tel Aviv.
Chinese ships and vessels belonging to other nations – including France and India – which have coordinated with Iran, have crossed throughout the war and the so-called ceasefire period.
One of Tehran’s main terms in stalled talks with Washington has been a new global system that would grant it authority over the Strait of Hormuz, in coordination with Oman and potentially other regional states.
Tehran is also demanding the removal of all US sanctions, financial reparations, and a full ceasefire in Lebanon and across the region.
The US has maintained an illegal blockade of Iranian ports since the ceasefire began, while repeatedly threatening to renew bombardment. Israel has also said it is awaiting US approval to renew attacks against Iran.
Washington violated the truce earlier this month by attacking several vessels and bombing Iran’s coast. Iranian forces targeted two US military vessels in response. The next day, skirmishes broke out between Iranian and US forces in the Strait of Hormuz.
Iranian officials are warning that “restraint has ended” and that renewal of all-out war will result in “crushing” responses.
