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The most significant characteristic of the Persian Gulf is the presence of huge oil-fields under the sea-bed of its shallow waters. On the other hand, the lack of understanding among the littoral states concerning the proper exploitation of these valuable resources has led to many conflicts, and is still considered as having a very high potential for conflict. This work clarifies the international legal rules applicable to the region with particular attention to the special characteristics of the Persian Gulf, such as ethnic conflicts, lack of defined land borders, presence of numerous islands, reefs and shoals and the presence of transboundary oil deposits. It consists of a collection of materials relating to the law of the sea, including both domestic and international rules, conventions, maritime agreements, state practice, the jurisprudence of the International Court of Justice and others. The study analyses all of these important factors in order to find an equitable solution to the problems facing the international community.