Risks in the Strait of Hormuz are shifting from whether vessels can transit to how they should arrange their passage. Shortly after Iran published a list of 45 “non-compliant vessels,” the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) updated its sanctions warning concerning the Strait of Hormuz on August 24. OFAC warned that both U.S. and non-U.S. persons could face U.S. sanctions risks from certain dealings with Iranian entities responsible for managing passage through the Strait. More importantly, sanctions exposure may arise from more than payments. Accepting related insurance or services and responding to information requests from Iranian authorities concerning safe passage could also create compliance risks.

Key Highlights 

• Iranian restrictions: Iran has published a list of 45 “non-compliant vessels,” further tightening its management of passage through the Strait of Hormuz. 

• OFAC warning: OFAC has updated its sanctions risk warning, stating that certain dealings could create exposure to U.S. sanctions. 

• Risks beyond payment: Insurance, services, and transit coordination also require close attention. 

• Conflicting requirements: The overlap between U.S. and Iranian requirements is creating more complex transit decisions for shipowners. 

• Voyage screening: Vessels, routes, counterparties, and the flow of funds should all be included in voyage-related compliance reviews.

OFAC Updates Warning: Risks Are Not Limited to Payments

On August 24, OFAC issued an updated warning further clarifying the potential sanctions risks associated with Iran’s proposed “safe passage fees” and other transit requirements. The entities specifically identified include the Persian Gulf Strait Authority (PGSA), Persian Gulf Marine Insurance Company (PGMIC), and HormuzSafe Marine Services Authority (Hormuz Safe). PGSA was designated under U.S. sanctions in May, while PGMIC and Hormuz Safe were designated in July.

The main issue for shipping companies is that the potential sanctions exposure is not limited to whether a payment has been made. According to OFAC, accepting related insurance or other services from Iranian entities, responding to information requests connected with safe passage, or seeking assurances to obtain safe passage could create sanctions risks even when no direct payment is involved.

In other words, when arranging a voyage through the Strait of Hormuz, shipowners must now consider not only the fees involved but also which entities they communicate with, what services they accept, and whether those arrangements involve dealings with sanctioned parties.

Iran Sets Transit Requirements While the U.S. Warns of Sanctions Risks

Before the U.S. warning was updated, Iran had already published a list of 45 “non-compliant vessels” and said the vessels could face fines, detention, or cargo confiscation. Iran also said that other vessels engaged in ship-to-ship transfers (STS) with listed vessels could also be added to the list.

This creates a practical problem for shipowners. Following Iranian transit requirements could create exposure to U.S. sanctions, while failing to follow those requirements could affect a vessel’s passage. Risks in the Strait of Hormuz have therefore expanded beyond navigation security to include conflicts between transit requirements and international sanctions.

The U.S. warning does not apply only to U.S. companies. OFAC made clear that non-U.S. persons engaging in certain transactions with the Iranian government or related sanctioned entities without an applicable exemption or authorization could also face sanctions risks. Shipowners, charterers, freight forwarders, and maritime service providers in China and other regions therefore cannot assume that the issue is irrelevant simply because they are not U.S. companies.

Which Parts of a Strait of Hormuz Voyage Require Further Review?

Companies arranging or planning voyages through the Strait of Hormuz should first confirm whether the vessel appears on Iran’s list of “non-compliant vessels” and continue to monitor any subsequent changes to the list. They should also review whether the planned route and actual voyage involve Iranian waters and identify the party responsible for coordinating the transit.

Insurance, agency services, ship-to-ship transfers, transshipment, and other maritime service arrangements also require particular attention. Counterparties such as charterers, cargo owners, ship managers, agents, and insurers should also be included in sanctions screening.

A compliance review of a Strait of Hormuz voyage can no longer focus only on the vessel or the route. The vessel’s status, navigation area, transit arrangements, counterparties, services involved, and flow of funds could all form part of the compliance assessment.

Strait of Hormuz Faces Overlapping Compliance Requirements

From Iran’s publication of a list of 45 “non-compliant vessels” to the U.S. update of its Strait of Hormuz sanctions warning, the regulatory environment surrounding this major global energy shipping route has become considerably more complex within a short period.

In the past, shipowners primarily considered whether the Strait was safe, how much insurance would cost, and whether the overall voyage cost was acceptable. They must now also consider whether transit arrangements involve sanctioned entities and whether accepting related services could create additional sanctions risks.

The key issue for future Strait of Hormuz transits may therefore no longer be simply whether a vessel can use the route, but who arranges the passage, which rules apply, and whether any part of the voyage could conflict with another set of compliance requirements.

Sources and Disclaimer 

Sources include the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), publicly available information from Iranian authorities, Reuters, and other public reports. This article is provided solely for industry reference and does not constitute legal or compliance advice.