Iran Requires New Transit Permits and Free Insurance for Strait of Hormuz Vessels

Iran introduced mandatory insurance coverage and transit permits for all vessels passing through the Strait of Hormuz, to be issued solely by the newly created Persian Gulf Strait Authority. The PGSA will also determine the required route for each vessel. Initial coverage is free, with costs covered by Iran, though the authority reserves the right to introduce fees later.

The measures add to existing complications in the strait, including GPS and GNSS spoofing that has degraded vessel positioning data. Kpler trade risk analyst Ana Subasic stated that if a vessel’s movement cannot be reliably observed due to spoofing, its voyage record is compromised and reconstruction becomes contested.

A tanker owner described the new regime as “madness” and “a mess,” according to Lloyd’s List.

-Iran talks in Switzerland. WTI crude traded at 74.29 USD per barrel, up 0.43 USD, while Brent crude stood at 77.90 USD per barrel, down 2.67 USD. Murban crude fell 2.84 USD to 70.79 USD per barrel. Natural gas traded at 3.235 USD per million BTU.

The U.S. and Iran signed a ceasefire agreement. Former U.S. ” Eighty million barrels of crude are lined up to exit the strait. More than 60 million barrels of oil are ready to head to Asia. Kuwait said its oil output could reach 2 million barrels per day within a week.

India received its first post-deal LNG cargo through the strait. An explosion at Qatar’s Ras Laffan LNG facility injured dozens. Equinor will boost Troll gas output with a 412 million dollar subsea development.