The Donald Trump administration on Wednesday sanctioned Iran's Persian Gulf Strait Authority (PGSA) – an entity created by Tehran to potentially collect fees for passage through the Strait of Hormuz.
The U.S. Treasury Department said the PGSA had been added to the sanctions list due to links to Iran's Islamic Revolutionary Guard Corps.
The sanctions prohibit shipowners from arranging transits with the PGSA or paying tolls or fees to the organization.
Iran set up the PGSA in early May to formalize control over Hormuz, claiming waters from Umm Al Quwain in the UAE to Kuh-e Mobarak in Iran.
The U.S. action comes after President Trump dismissed Iranian state media reports of an unofficial agreement for Iran and Oman to jointly manage Hormuz.
A framework deal would have restored commercial shipping through Hormuz to pre-war levels within a month.
But Trump rejected the notion, stating that the waterway is international waters open to all.
Hormuz remains a major sticking point, with Tehran effectively blocking passage since late February, disrupting about a fifth of global oil supplies and causing economic disruption.
A near-term reopening appears unlikely, especially as the U.S. and Iran resumed hostilities this week with air strikes, undermining an early-April ceasefire.
