The Trump administration has indicated that any payments made by commercial ships to Iran's self-declared authority for the Strait of Hormuz might be reclaimed from Iranian assets. This adds a new layer to the ongoing s...
The Trump administration has indicated that any payments made by commercial ships to Iran's self-declared authority for the Strait of Hormuz might be reclaimed from Iranian assets. This adds a new layer to the ongoing struggle for control of this crucial waterway.
Treasury Secretary Scott Bessent made these comments on Thursday as U.S. officials reacted to a claim by the Persian Gulf Strait Authority (PGSA) that the Strait of Hormuz was "closed until further notice."
Bessent stated on social media, "The Iranian regime will lose the zero-sum game it is playing. Any tolls paid to the Persian Gulf Strait Authority will be offset by funds taken from their accounts."
He also warned that any harm to U.S. allies in the Gulf would be compensated through Iranian funds and that further attacks would worsen Iran's economic situation.
These statements were issued just after U.S. Central Command confirmed that the Strait of Hormuz is still open for commercial shipping, countering the PGSA's claims of a shutdown.
According to CENTCOM, "The Strait of Hormuz remains open for transit," and added that designated shipping routes are still accessible, with hundreds of vessels passing through the strait recently.
The conflicting statements underscore the complicated dispute over access to the strait and who has the authority to oversee commercial shipping in this narrow passage linking the Persian Gulf to global markets.
The PGSA was formed in the wake of the U.S.-Iran conflict, which disrupted commercial shipping in the Strait of Hormuz. This organization claims authority over vessel transits and requires commercial ships to seek approval and follow routing instructions from Iranian authorities.
Washington has dismissed these claims and taken action against the PGSA.
In April, the U.S. Treasury Department cautioned that payments to Iran or the Islamic Revolutionary Guard Corps for "safe passage" through Hormuz could expose shipowners, insurers, banks, and other maritime players to sanctions. The Treasury sanctioned the PGSA in May for collaborating with the IRGC to enforce a fee-based transit system.
Treasury officials alleged that vessels wanting to pass through must provide sensitive operational information and follow routing instructions from Iranian authorities to get transit approval.
Bessent's recent comments suggest that the administration is considering options beyond sanctions and may find ways to financially undermine Iran's transit fee system by recovering matching amounts from Iranian assets under U.S. control.
This issue is increasingly significant for commercial shipping companies in the region, many of which are stuck between conflicting claims of authority and differing security guidelines.
Earlier this week, International Maritime Organization Secretary-General Arsenio Dominguez warned that there is currently no safe passage in the Strait of Hormuz, even as vessel traffic begins to pick up. "The current situation remains highly volatile, with no reliable security assurances in place," he stated.
The Strait of Hormuz typically handles about 20% of global oil and LNG trade, making the dispute over transit rights, security assurances, and financial control crucial amid ongoing conflicts.