Iran Establishes New Vetting System for Strait of Hormuz Transit Amid "Selective" Blockade

Iran is developing a new vetting and registration system for ships transiting the Strait of Hormuz as it transitions to a "selective" blockade of the strategic waterway, according to reports from Lloyd's List.

The New Vetting and Registration System

Iran's Islamic Revolutionary Guard Corps (IRGC) is reportedly developing a new vetting and registration system to approve vessels wishing to use pre-approved routes through the Strait. Ships are expected to communicate extensive details regarding both vessel ownership and cargo destination to the IRGC in advance of transit.

These communications are reportedly being facilitated through a network of Iran-affiliated individuals operating outside Iran.

"Safe Corridor" Emerges Through Iranian Waters

A new "safe" corridor running through Iran's territorial waters has emerged in recent days, with at least nine ships reportedly having passed through. Maritime news service Lloyd's reported that one tanker is understood to have paid $2 million for the right to transit, though it is currently unknown whether other vessels have also paid fees.

Diplomatic Engagement and Shifting Stance

Several countries, including India, Pakistan, Iraq, Malaysia, and China, are reportedly in direct talks with Tehran to transit through its territorial waters in the Strait. Iran's Foreign Minister, Abbas Araghchi, recently stated that the Strait was "open, but closed to our enemies," signaling a de-escalation from earlier IRGC remarks threatening to set any transiting ship ablaze.

Global Impact and Transit Challenges

Traffic through the Strait of Hormuz has plunged by 95 percent since the United States and Israel launched a war on Iran three weeks ago, leading to significant repercussions for global energy markets. Approximately one-fifth of the world's oil transits through this vital strait, which connects the Gulf and the Gulf of Oman.

Despite the blockade, a small number of ships, mainly flagged to Pakistan, India, or China, have managed to transit the Strait. However, numbers have slowed recently due to an increased risk of attack. Some vessels have resorted to turning off their automatic identification systems (AIS), while others have broadcast Chinese credentials to Iranian authorities.

Expert Analysis on Viability and Risks

Alex Mills, an international trade and maritime law expert, told Al Jazeera that while the new registration system offers a short-term solution for some countries, its long-term economic viability is questionable. Mills noted that the Iranian proposal, which requires vessels to travel through Iranian waters, call at Iranian ports, and declare all cargo destinations, runs counter to previous tactics of "going dark" in Iranian waters and poses additional security risks.

Mills also highlighted potential hurdles from insurance companies, who may deem the risks too high, creating a financial disincentive for global shipping. He emphasized that maritime supply chains are planned months in advance, meaning adjustments to routes and bookings are already locked in, making immediate shifts difficult even if routes fully open.

Key Takeaways

  • Iran, through its Islamic Revolutionary Guard Corps (IRGC), is developing a new vetting and registration system for ships in the Strait of Hormuz.
  • A "safe corridor" through Iran's territorial waters has emerged, with some vessels reportedly paying transit fees.
  • Traffic through the Strait has dropped by 95% since the recent conflict, severely impacting global energy markets.
  • Iran's Foreign Minister has stated the Strait is "open, but closed to our enemies," a softened stance from earlier threats.
  • Experts warn of significant economic, security, and insurance challenges that could hinder the long-term viability of the new system for shipping companies.

Olley News Insight: This development signals Iran's attempt to exert greater control over the Strait of Hormuz while potentially offering a structured, albeit selective, transit option for specific nations. However, the long-term implications for global trade and maritime security remain uncertain given ongoing regional tensions, potential insurance hurdles, and the economic disincentives for many international shipping companies.