The Strait of Hormuz has become a commercial toll point, with Iran's Islamic Revolutionary Guard Corps (IRGC) reportedly charging oil tanker operators up to $2 million for passage.
The Financial Times has confirmed this arrangement, with the IRGC verifying passage permits via VHF radio. According to Lloyd's List Intelligence, approximately 89 to 90 vessels passed through under some form of IRGC permission between March 1 and March 15.
Payment methods include cash, cryptocurrency, or barter, establishing a clear commercial model.
How the IRGC's Toll Mechanism Works in the Strait of Hormuz
The process begins when oil tanker operators contact intermediaries associated with the IRGC. Negotiations then take place to agree on a fee of up to $2 million per voyage. Payments can be made in cash, cryptocurrency, or through barter. The vessels then receive passage permits.
The IRGC contacts the tankers via VHF radio to verify their AIS transponder data. Once confirmed, the vessels are allowed to pass through the strait.
Not all 89 to 90 vessels paid the toll between March 1 and March 15. Ships from Iran and its allies, as well as some Indian tankers, obtained passage through special arrangements between governments.
Analyst Shanaka Anslem Perera shared key details about the toll arrangement on social media platform X. He described how intermediaries negotiate with the IRGC and confirmed that payments are made in cash or cryptocurrency.
At least one operator has explicitly paid the toll, as confirmed by his post. This single transaction sets a benchmark for the broader market.
The $2 million toll has caused war risk insurance costs to soar. A supertanker valued at $120 million now incurs war risk insurance fees of $3.6 million to $6 million per voyage.
Charter rates have also quadrupled, reaching $800,000 per day. The cost of transporting a batch of crude oil is now higher than the total transit fees for the entire fleet six months ago.
Costs in the Strait of Hormuz Will Ultimately Be Passed to Consumers
Every dollar increase in costs will ultimately be passed on to end consumers. The toll has raised prices for crude oil, liquefied natural gas, urea, and pharmaceuticals.
This $2 million fee is not limited to the shipping industry; billions of consumers will bear this cost through higher prices for goods.
The IRGC appears to have created a self-sustaining revenue loop through the blockade. This blockade has created scarcity, forcing operators to pay the toll.
Reportedly, these payments fund the provincial command responsible for enforcing the initial blockade. This mechanism operates without external financing.
The U.S. may view these tolls as state-sponsored terrorism financing. Expected responses include sanctions against paying operators and expanded designations against intermediaries.
Naval escort commitments from six allied nations are also expected to accelerate. However, enforcement presents direct contradictions in practice.
Sanctioning every paying operator would deprive the only vessels currently transporting oil through the strait. Despite the extortionate nature of this toll, it remains the only route to the strait.