Hormuz Toll System Offers Exemptions to Allies, Cryptocurrency Payments

Iran has implemented a toll system for commercial vessels passing through the Strait of Hormuz, one of the world's most crucial energy trade chokepoints. The move aims to reward allies while penalizing others.

Roughly 20% of global oil shipments flow through this narrow waterway, and Iran is charging fees ranging from $1 per barrel to as much as $2 million per vessel. China, which routes an estimated 45-50% of its crude oil imports through the Strait, will receive preferential treatment.

Russia, on the other hand, has been granted full exemptions from the tolls by Iranian authorities. The country's Ambassador to Russia, Kazem Jalali, made this announcement in mid-April. Payments for the Hormuz tolls can be made in Chinese yuan, Bitcoin, or stablecoins like USDT, facilitated through intermediaries connected to the Islamic Revolutionary Guard Corps.