On May 28, the U.S. Treasury announced sanctions against Iran's newly formed Persian Gulf Strait Authority (PGSA), which is responsible for overseeing the Strait of Hormuz. This strait is crucial for global energy trade, with about one-fifth of the world's oil passing through it. The sanctions are part of the Trump administration's strategy to exert pressure on Iran amid ongoing negotiations to resolve conflicts stemming from military tensions. The PGSA was launched following increased restrictions on navigation due to military actions involving the U.S. and Israel against Iran. Treasury Secretary Scott Bessent characterized the PGSA as an extension of Iran's Islamic Revolutionary Guard Corps' efforts to monetize the strait, labeling it a move to extort global maritime trade. Since reimposing sanctions in 2018 after withdrawing from the nuclear deal, the U.S. has aimed to restrict Iran's financial resources significantly. In response, Iran has maintained that any fees charged are for navigational services, not tolls. The sanctions prohibit the PGSA from accessing the U.S. financial system and could expose foreign institutions facilitating transactions with it to secondary sanctions.