Iran has begun enforcing a toll regime in the Strait of Hormuz, transforming the world’s most critical oil artery into a revenue stream under its control.
As the month-long war rages, vessels must now enter Iranian waters for IRGC vetting, with at least two paying fees in Chinese yuan to pass safely. This setup not only bolsters Tehran’s exports—Kharg Island shipped 1.6 million barrels last month, unchanged from pre-war levels, feeding sanction-defiant Chinese refineries—but also exploits the 90 per cent traffic plunge that has sent Brent crude soaring past $120 a barrel.
Lloyd’s List Intelligence data paints a stark picture: only 150 ships have transited since 1 March, versus thousands monthly before. Many, often Iranian-linked (up to 90 per cent recently), dodge central lanes for a risky northern detour around Larak Island, deactivating trackers en route. The perils are real—18 vessels struck, seven crew killed, says the IMO, without blaming sides.
“Iran’s IRGC has imposed a de facto ‘toll booth’ regime in the Strait of Hormuz,” the firm states. Operators submit cargo, crew, and destination details to IRGC intermediaries for clearance codes and escorts; oil gets priority geopolitical screening. “While not all ships are paying a direct toll, at least two vessels have and the payment is settled in yuan,” Lloyd’s List added.
Tehran defends this as lawful precautions for safety, notifying the IMO accordingly, while parliament drafts a bill to codify sovereignty and fees. MP Mohammadreza Rezaei Kouchi said parliament is pursuing a plan to formally codify Iran’s sovereignty, control and oversight over the Strait of Hormuz, while also creating a source of revenue through the collection of fees.
Critics cry foul. Maritime expert Sal Mercogliano calls tolls illegal under UNCLOS innocent passage rules. “There’s no provision in international law anywhere to set up a toll booth and shake down shipping. This is Iran using the element that they have right now, which is control of the Strait of Hormuz.”
UAE’s ADNOC chief Sultan al-Jaber branded it “economic terrorism.” “When Iran holds Hormuz hostage, every nation pays the ransom, at the gas pump, at the grocery store and at the pharmacy,” he added.
Such moves likely violate Western sanctions on the IRGC, as Asian shortages and LNG delays ripple worldwide.