Gulf States Tell Ships Not to Use Iran’s Strait of Hormuz Route
(Bloomberg) -- Five Middle Eastern countries have formally rejected Iran’s establishment of the Persian Gulf Strait Authority to control transit through the Strait of Hormuz.
In a letter to a global shipping watchdog, Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates said commercial and merchant vessels shouldn’t engage with the PGSA or cross the waterway using a route designated by Iran. The letter was issued earlier this week and distributed by the International Maritime Organization.
Earlier in May, Iran laid out an updated process for transiting the strait in which vessel owners needed to email the PGSA. The waterway has been largely blocked since the US and Israel began bombing Iran in late February, though a handful of ships have crossed by following a route approved by Tehran.
“Iran’s purported route should be seen for what it is, an attempt to control traffic through the Strait by forcing vessels to use a route within its territorial waters, which can be exploited for monetary gain through the imposition of toll fees,” the letter said. “Any understanding or recognition of Iran’s proposed route and PGSA as an alternative would set a dangerous precedent.”
The view of those countries matters because in normal times they are exporters of significant volumes of energy, meaning shipowners willing to engage with Iran would risk irking other major regional producers. The IMO, which is the UN agency for shipping, has previously said charging for tolls for crossing Hormuz would be unacceptable, a view echoed by two of the world’s biggest commodity traders last month.
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