Iran's Revolutionary Guard Imposes Yuan-Based Tolls For Strait Of Hormuz Transit: Bloomberg

(MENAFN- Daily News Egypt) Iran’s Revolutionary Guard (IRGC) has begun imposing a formal toll system on vessels transiting the Strait of Hormuz, charging fees in Chinese yuan and requiring ships to fly the flags of“friendly” nations to avoid attack, Bloomberg reported, citing shipping industry sources and government officials.

The burgeoning system requires ship operators to contact an IRGC-linked intermediary to provide sensitive data, including ownership details, crew lists, and Automated Identification System (AIS) data. Following a security screening to ensure no links to Israel or the United States, fees are negotiated based on a five-tier classification of the vessel’s flag state, with tankers typically charged approximately $1 per barrel of oil.

Payments for the transit are being demanded in Chinese yuan or stablecoins, digital currencies pegged to major fiat assets, sources told Bloomberg on condition of anonymity. For a Very Large Crude Carrier (VLCC) capable of holding 2m barrels, a single passage could cost $2m.

The mechanism was recently highlighted when an operator of a stranded tanker in the Arabian Gulf was offered safe passage through the Strait into open waters under IRGC escort. The offer, facilitated by the Pakistani government, was contingent on the vessel re-registering and flying the Pakistani flag.

Internal discussions indicate that Islamabad has contacted major global commodity traders to secure vessels that could temporarily fly the Pakistani flag to transit the Strait. This move is seen as an effort to demonstrate the success of diplomatic channels in navigating the regional conflict. At least two major oil trading firms have received the proposal.

“The Iranian justification is that this falls within their right to self-defence, necessitating inspections and fees for those inspections,” said Jason Chuah, professor of maritime and commercial law at City, University of London.“However, from the perspective of the majority of international law experts, this measure is illegal.”

The IRGC’s“Iranian Toll Gate” involves a specific route between coastal islands where ships must broadcast a secret authorisation code via high-frequency radio. Iran’s semi-official Fars news agency reported that the National Security Committee has already approved a draft law to formalise these transit fees.

The system emerges amid heightened regional tensions and a“war” that has seen frequent missile and drone strikes. On March 31, a Kuwaiti oil tanker was struck by at least one drone near Dubai, resulting in a fire and structural damage. While U.S. President Donald Trump stated on Tuesday his desire to end the conflict within two to three weeks, he noted on Wednesday that a ceasefire would only be possible if the Strait was reopened.

Maritime insurance costs have surged as operators weigh the risks of paying fees to the IRGC, which remains under sanctions by the United States, the European Union, and Britain. Experts warned that such payments could violate anti-money laundering regulations and international sanctions regimes.

Despite the risks, vessel tracking data shows a slight uptick in traffic through the Strait over the past week, though volumes remain a fraction of pre-war levels.

“For this approach to work, Tehran needs to maintain its ability to credibly threaten commercial shipping,” said Basil Germond, an international security professor at Lancaster University.“To keep those threats credible, Tehran needs to target tankers from time to time.”

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