Tanker ships must pay Iran’s Revolutionary Guards in Chinese yuan or crypto before they can pass Strait of Hormuz
Ships navigating the Strait of Hormuz now face a strict and costly set of requirements imposed by Iran, which could demand up to $2 million in Chinese yuan or cryptocurrencies for safe passage, according to a new report.
The new rules follow the approval of legislation by Iran’s lawmakers this week, mandating fees for vessels crossing the strategic waterway. Sources familiar with the arrangement told Bloomberg that payments would be made to a company tied to the Islamic Revolutionary Guard Corps (IRGC).
Under the guidelines, vessels must submit detailed information about their ownership, flag, cargo, crew, destination, and transit history from their Automated Identification System before passage. The IRGC then reviews these records to ensure the ships have no connections to the US or Israel. Only after passing these checks can ships negotiate fees for safe passage.
Ships must also fly the flag of a nation considered friendly and transmit a secret high-frequency code to alert the Iranian navy, which will then escort them through the strait. Analysts say the system effectively gives Iran complete control over one of the world’s most important shipping lanes, which handles roughly 20% of global oil exports.
The cost for oil tankers begins at approximately $1 per barrel of crude, with very large crude carriers carrying up to 2 million barrels facing fees as high as $2 million. Payments must be made in Chinese yuan or stable cryptocurrencies.
Iran has defended the system, describing it as “the Iranian tollbooth,” in correspondence with the International Maritime Organization (IMO). Tehran stated that, as the coastal state along the strait, it is acting in accordance with international law by limiting passage for ships associated with countries it considers aggressors. Iran previously closed the strait in March to vessels it identified as hostile following military actions by the US and Israel.
Since the conflict began, roughly 300 ships—including those from India, China, and Pakistan—have successfully transited the strait under this system. Before the war, an average of 130 ships passed through the Strait of Hormuz daily.
About 2,000 vessels remain stuck in the region, carrying around 20,000 crew members. The IMO has urged nations to urgently coordinate the safe evacuation of these trapped ships.
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