Iran Introduces Mandatory Insurance for Vessels Transiting Strait of Hormuz

The move, outlined in a PGSA terms-and-conditions document reviewed by Lloyd’s List, comes despite the recently signed US-Iran Memorandum of Understanding (MOU), which guarantees safe and toll-free passage for commercial vessels through the strategic waterway for a 60-day period.      According to the PGSA document, vessel owners are required to secure the designated insurance coverage before transiting the strait. While no fees will be charged during the initial 60-day period, Iran has indicated that insurance premiums may be introduced thereafter. “This insurance is provided free of charge to the vessel owner, with all expenses covered by the Islamic Republic of Iran,” the document states. “The PGSA reserves the right to introduce insurance fees in the future. Owners will then be required to purchase and renew coverage accordingly.”      The new regulations represent Iran’s most explicit effort to establish administrative control over vessel transit through one of the world’s most critical maritime chokepoints.      In addition to the insurance requirement, Iran has insisted that vessels use a designated northern transit route near Larak Island, rejecting the growing practice of ships utilizing a US-protected southern corridor closer to the Oman coast.