According to Iran International News, the country could theoretically generate $70 to $80 billion annually from service fees in the Hormuz Strait.
What is the Hormuz Strait Toll System?
Hamid Hosseini, spokesperson for the Iranian Oil, Gas and Petrochemical Products Exporters Association, stated that the toll process is relatively straightforward. Tanker crews need to send cargo information via email to Iranian authorities, who will calculate the fee at $1 per barrel. Subsequently, crews have a brief window to complete payment using cryptocurrency or renminbi. Empty vessels can pass through free of charge.
Vessels that do not follow the prescribed procedure will receive radio warnings, with stern messages indicating that ships attempting to pass without approval will be told they “will be destroyed.”
Why Use Non-Dollar Payment Methods?
Iran's acceptance of cryptocurrency and renminbi instead of the dollar reflects its ongoing goal to reduce dependence on the dollar system and mitigate the risk of funds being frozen due to international sanctions. Due to severe sanctions, Iran's access to the global banking system is limited, making dollar transactions difficult and risky.
Bitcoin, as one of the accepted payment methods, is particularly suitable for this situation because transactions occur on a decentralized network, preventing any government from blocking or reversing transactions once confirmed. The renminbi also helps Iran maintain transactions entirely independent of the dollar system.
The Importance of the Hormuz Strait
The Hormuz Strait is a narrow waterway connecting Iran and Oman, linking the Persian Gulf with the Gulf of Oman. This strait handles about 20% of the world's oil supply and is one of the most strategically significant points in global energy infrastructure. Disruptions to shipping through this strait would impact global oil prices, supply chains, and energy markets.
Reports indicate that Iran is also pushing vessels to move closer to its coastline, increasing risks for ships associated with Western or Gulf countries. Many shipping companies have chosen to suspend cargo transport until the situation clarifies.
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Analyst Predictions
What does this mean for countries outside Iran?
Iran is not the only country facing severe financial sanctions. Russia, Venezuela, and North Korea all face varying degrees of restrictions. The precedent of a sovereign nation accepting cryptocurrency for critical infrastructure has now become a public fact, regardless of whether a ceasefire can be maintained.
Iran has established an estimated $7.8 billion cryptocurrency ecosystem domestically. During times of crisis, including protests and military escalations, Bitcoin plays a particularly prominent role.