Iran’s Hormuz Authority Warns Ships Against ‘Illegal Routes’ as Strait Standoff Persists

The Persian Gulf Strait Authority (PGSA), an Iranian body established to manage the Strait of Hormuz, warned shipping operators early Sunday that vessels using “illegal routes” in the region could face serious consequences.

In a post on X, the authority said such violations “risk financial and life losses for the vessel, owner, master and crew” and could “seriously restrict” a ship’s future passage through the Strait of Hormuz. Shipowners must exercise due diligence to prevent breaches, it added. If charterers violate the rules, the authority warned, all vessels belonging to the companies involved could face future restrictions.

The warning comes as the Strait of Hormuz remains effectively blocked, despite efforts under way for some time to fully reopen it. Before the war launched by the United States and Israel against Iran in late February, shipping through the strait was largely uninterrupted.

Iranian Foreign Minister Abbas Araghchi said earlier this week that Tehran had submitted a “seven-day plan” to the United States through Qatar. Under the proposal, Washington would have to meet certain conditions before the strait could be reopened. The Wall Street Journal reported that the demands included lifting the U.S. naval blockade.

U.S. President Donald Trump rejected the proposal, telling reporters at the White House that the offer was unacceptable.

The standoff carries outsized consequences for global markets. Roughly one-fifth of global oil demand normally passes through the Strait of Hormuz, which is also a crucial route for liquefied natural gas and fertilizer. Since the war began, Iranian threats and attacks have brought shipping through the strait close to a standstill, sending global oil and gas prices sharply higher.

For shipowners and charterers, the PGSA’s warning adds another layer of risk to an already volatile route. With diplomatic efforts stalled and traffic near a standstill, the waterway is likely to remain a flashpoint for global energy markets.