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. Several countries, including India, Pakistan, Iraq, Malaysia, and China, are in direct talks with Tehran to transit through its territorial waters. The new system is reportedly under development by Iran's Islamic Revolutionary Guard Corps (IRGC) and requires extensive details regarding vessel ownership and destination of cargo to be communicated in advance. While the blockade has resulted in a 95% decline in traffic through the Strait, a small number of ships have managed to transit, mainly flagged to Pakistan, India, or China. However, numbers have slowed recently due to an increased risk of attack. Iran's Foreign Minister Abbas Araghchi has signaled a de-escalation from earlier remarks by the IRGC, stating that the Strait is 'open, but closed to our enemies'. Maritime data indicates that a new 'safe' corridor running through Iran's territorial waters has emerged, and at least nine ships have passed through. The development of the vetting system offers a short-term solution for some countries, but it may not make economic sense in the long run.