Iran establishes new agency to control Strait of Hormuz shipping while reviewing US peace deal

May 7, 2026

Iran has established the Persian Gulf Strait Authority to vet and tax vessels transiting the Strait of Hormuz, effectively closing the strategic waterway and trapping hundreds of commercial ships in the Persian Gulf while the U.S. blockades Iranian ports. The move, which maritime law experts say violates international law requiring peaceful passage through territorial waters, comes as Iran reviews U.S. peace proposals mediated by Pakistan following a war that began February 28 with U.S.-Israeli strikes and has been under ceasefire since April 8. President Donald Trump suspended Project Freedom, a military effort to force open the strait that sank six Iranian boats, after only two days and two American ships passed through, giving diplomacy more time as Supreme Leader Mojtaba Khamenei oversees negotiations. Saudi Arabia refused to support the U.S. military operation and signaled neutrality to Iran, while Pakistani officials express optimism about reaching a U.S.-Iran agreement soon.

Iran's establishment of Persian Gulf Strait Authority to control shipping

▪The Persian Gulf Strait Authority emailed Lloyd's List Intelligence an application form for ships seeking passage through the Strait of Hormuz.

U.S.-Iran peace negotiations and ceasefire status

▪U.S. Secretary of State Marco Rubio discussed Middle East peace efforts at the Vatican with Pope Leo XIV.
▪The ceasefire between the U.S. and Iran has largely held since April 8.
▪Direct talks between Israel and Lebanon are scheduled to resume May 14 and 15 in Washington.
▪Mojtaba Khamenei has only released a series of written statements since being named supreme leader in March.
▪President Donald Trump suspended Project Freedom during its second day on Tuesday.
▪The war between the U.S. and Iran began February 28 when the U.S. and Israel launched strikes against Iran.
▪Mojtaba Khamenei replaced his father Ayatollah Ali Khamenei, who was killed during the war's initial strikes.
▪Iranian President Masoud Pezeshkian met with Supreme Leader Mojtaba Khamenei for more than two hours recently.
▪Pope Leo XIV's opposition to the Iran war has led to open sparring with President Donald Trump.

Regional diplomatic responses and military positioning

▪Saudi Arabia refused to support President Donald Trump's effort to reopen the Strait of Hormuz by force.
▪Pakistani Foreign Ministry spokesperson Tahir Andrabi said Pakistan expects a U.S.-Iran agreement sooner rather than later.
▪Saudi Arabia sent a message to Iran that the kingdom would not be involved in U.S. attacks related to President Donald Trump's attempt to reopen the Strait of Hormuz.
▪Pakistani Foreign Minister Ishaq Dar spoke by phone Thursday with Iranian Foreign Minister Abbas Araghchi.
▪Pakistani Prime Minister Shehbaz Sharif said Islamabad remained in continuous contact with Iran and the United States day and night to stop the war and extend the ceasefire.
▪Saudi Arabia told the U.S. that the kingdom is not part of Project Freedom and that the U.S. cannot use Saudi territories and bases for the effort.
▪President Donald Trump did not consult with Saudi Arabia before launching the effort to force open a shipping passage through the Strait of Hormuz.