Oil and LNG tanker operators transiting the Strait of Hormuz now face a substantial new cost: Iran’s Islamic Revolutionary Guard Corps (IRGC) has reportedly imposed a toll of up to $2 million per vessel, accepting payments in cash, cryptocurrency, or barter. The IRGC, a major branch of Iran’s armed forces tasked with protecting the country’s Islamic system and exerting significant influence across the Middle East, is said to be managing this rapidly evolving payment system, fundamentally altering commercial maritime practices in the region.
Maritime Toll Process And Crypto Use
To secure passage, tanker operators must negotiate with intermediaries linked to the IRGC. According to industry sources, these discussions result in a fee agreement that can reach $2 million per voyage. Payments are accepted in various forms, including digital assets such as cryptocurrency. Once a payment arrangement is reached, the IRGC verifies transiting ships through VHF radio contact, checking their Automatic Identification System (AIS) transponder data before granting clearance.
From March 1 to March 15, 89 to 90 vessels are reported to have transited the strait with some form of IRGC approval. Not all ships were charged; Iranian-flagged, allied, and certain Indian vessels utilized government-to-government agreements for passage. An online post by Shanaka Anslem Perera highlighted how market rates became anchored around an initial reported crypto or cash payment, establishing precedent for future tolls.
Rising Costs And Industry Implications
The introduction of this toll comes on top of already soaring war-risk insurance. For example, a Very Large Crude Carrier (VLCC) valued at $120 million now pays between $3.6 million and $6 million in insurance premiums for each trip. Charter rates have surged as well, with daily costs climbing to as much as $800,000. Shipping a single cargo through the strait has become significantly more expensive compared to costs six months prior.
Industry specialists point out that these increased costs do not remain isolated; they filter through to the global supply chain, ultimately leading to higher prices for energy, urea, pharmaceuticals, and other commodities. The cost burden is absorbed by downstream businesses and consumers worldwide, as shipping expenses continue to climb.
Wider Impact And Policy Response
The IRGC’s toll collection mechanism is viewed by analysts as a self-financing system. The partial closure of the strait created scarcity and forced operators to pay to ensure continued oil and gas shipments. Funds obtained through these tolls reportedly support the same provincial commands enforcing maritime controls, creating a closed financial loop within Iran’s security establishment.
Policy discussions in the United States and allied countries now focus on addressing payment flows into Iran, with expectations of new sanctions targeting both shipping companies and intermediaries involved in these transactions. A naval initiative involving six Western-aligned countries is reportedly accelerating, but the enforcement dilemma remains: sanctioning toll payers risks shutting down the only functioning oil supply through the strait.
Observers note that Iran reopened the strait under strict conditionality, exercising control over a critical global chokepoint. The IRGC’s system blurs the distinction between military operation and enforced commercial toll, putting global trade policy and maritime security in direct conflict.
