Iran’s Islamic Revolutionary Guard Corps (IRGC) has implemented a toll system for oil tankers transiting the Strait of Hormuz, charging up to $2 million per vessel and accepting payments in Chinese yuan, dollar-pegged stablecoins (USDT/USDC), and bitcoin (BTC), according to multiple reports from the Financial Times, Bloomberg, and S&P Global. The move marks a significant shift in energy trade finance, bypassing the U.S. dollar-dominated financial system and Western sanctions.
How the Toll System Works
Following U.S. and Israeli strikes on Iran in late February 2026, the IRGC effectively closed the Strait of Hormuz, reducing tanker transits by 97%, per S&P Global data. The waterway normally carries roughly 20% of global oil and liquefied natural gas trade. A ceasefire brokered by U.S. President Donald Trump in early April allowed a controlled reopening, but only for vessels from nations deemed non-hostile by Tehran — including China, India, and select Gulf states. Western-linked operators remain largely blocked.
Ship operators must contact an IRGC-linked intermediary, submit ownership records, cargo details, crew information, and AIS tracking data. The IRGC’s Hormozgan Provincial Command vets each vessel against a “friendliness ranking” of 1 to 5, screening for ties to the U.S. or Israel. Approved operators then negotiate fees: oil tankers pay roughly $1 per barrel of cargo, translating to about $2 million for a Very Large Crude Carrier (VLCC) holding 2 million barrels. Rates vary based on cargo type and flag state relations.
Payment is accepted in Chinese yuan or dollar-pegged stablecoins (USDT, USDC), effectively bypassing the dollar-based financial system and U.S. sanctions. Bloomberg reported that at least two vessels paid in yuan by April 1. Earlier accounts also mentioned cash and barter arrangements. Once payment clears, the IRGC issues a one-time secret permit code and directs the vessel to sail along a specific route closer to the Iranian coast, often north of Larak Island. The vessel broadcasts the code via VHF radio, and an IRGC patrol boat escorts it through. Some operators have reflagged ships under Pakistani registration to qualify.
Legal Codification and International Law Concerns
In early April 2026, Iran’s National Security Committee approved a bill formalizing the toll structure into law. Iranian officials framed the charges as legitimate compensation for security services provided by Iran as a coastal state, drawing comparisons to the Suez Canal or Denmark’s historical Sound Dues. However, legal scholars say the arrangement likely conflicts with customary international law on innocent passage, which parallels the United Nations Convention on the Law of the Sea (UNCLOS). Iran is not a party to UNCLOS and portrays the controls as a wartime self-defense measure.
FT Report: Iran Explicitly Demands Crypto
The Financial Times reported on Wednesday that Iran is specifically demanding cryptocurrency tolls for laden oil tankers during the ceasefire phase, including not only stablecoins but also bitcoin (BTC). Earlier FT reporting in late March detailed government-to-government negotiations conducted through embassies and the use of VHF passcodes. One estimate cited put Iran’s potential annual revenue from the toll system at $70 billion to $80 billion, assuming traffic eventually returns near pre-war levels — though transits remain far below normal. Gulf states such as Saudi Arabia and the UAE are accelerating discussions on alternative pipeline capacity to reduce dependency on the strait. Insurance premiums for tankers operating in the region have also surged.
The IRGC attacked at least one non-compliant vessel, a Kuwaiti tanker, signaling a firm stance against those weighing the fee against the risk of refusal.
Fragile Ceasefire and Uncertain Future
The two-week ceasefire struck by Trump on April 7, 2026, remains fragile, and Iran’s toll demands are conditions of that truce. The system’s scope will depend on how the broader conflict between the U.S., Israel, and Iran develops. Notably, on-chain data from Polymarket and Hyperliquid flagged suspicious bets placed hours before the ceasefire announcement, suggesting possible insider knowledge. The toll system represents a radical experiment in energy trade finance that could reshape global oil flows and challenge the dollar’s dominance in commodity transactions.