US Senator urges sanctions on entities paying Iran for passage via Strait of Hormuz

Washington DC: US Senator Tom Cotton sent a letter to Treasury Secretary Scott Bessent encouraging the administration to use existing authorities to sanction any entity assisting Iran with what he said was "illegally blocking the Strait of Hormuz, including the Persian Gulf Strait Authority (PGSA)".

In an official statement shared on his website, Senator Cotton further offered to work on legislation to provide the administration with additional authorities as needed.

He said, "The PGSA cannot operate without the consent of other nations, and the United States must ensure every actor enabling the terrorist Iranian regime is held accountable. I stand ready to work with you and am preparing legislation to further codify your efforts. In the meantime, I support the use of existing authorities to impose sanctions on the PGSA, its officers, and any foreign entity that pays, processes, or facilitates tolls to Iran for passage through the Strait of Hormuz."


In his letter to Bessent on Thursday, Cotton called Iran's efforts to illegally control the Strait of Hormuz yet another example of the ongoing threats posed by the" terrorist Iranian regime that Operation Economic Fury rightly targets".

He called the reports that Iran is coordinating with other governments to jointly regulate traffic through the Strait alarming and added that Congress stands ready to support any actions that further this mission and hold these entities to account.

"Just this week, Iran officially launched the Persian Gulf Strait Authority (PGSA), claiming sovereign authority to regulate transit and collect fees for passage through the Strait of Hormuz. Under this illegal framework, ships must apply to the PGSA, disclose ownership, insurance, crew manifests, and cargo, and pay tolls reportedly reaching $2 million per vessel before being granted permission to transit. The PGSA operates directly under the Islamic Revolutionary Guard Corps (IRGC), a designated Foreign Terrorist Organisation, meaning every dollar collected directly finances a sanctioned terrorist entity", he said.

The letter to the Treasury Secretary claimed that "beyond the immediate revenue it generates for the IRGC, formal recognition of their scheme by any government, shipowner, or financial institution would violate the principle of freedom of navigation and set a dangerous precedent for other coastal states near the world's critical maritime routes. Any individual, entity, or nation that lends legitimacy to Iran's illegal toll booth is enabling the IRGC and undermining the global trading system."

He slammed the PGSA and said that it cannot operate without the consent of other nations, and the United States must ensure every actor enabling the terrorist Iranian regime is held accountable.

"I stand ready to work with you and am preparing legislation to further codify your efforts. In the meantime, I support the use of existing authorities to impose sanctions on the PGSA, its officers, and any foreign entity that pays, processes, or facilitates tolls to Iran for passage through the Strait of Hormuz", Cotton added.

Tom Cotton is a United States Senator from Arkansas. His committees include the Armed Services Committee, where he serves on Airland, Cybersecurity, and Strategic Forces subcommittees, the Intelligence Committee, where he serves as the chairman, and the Joint Economic Committee.

Tom is the third-ranking member in the Senate Republican leadership as Chairman of the Senate Republican Conference.