The Iranian navy has set up a new “tollbooth system” in the Strait of Hormuz, escorting foreign tankers through the waterway in exchange for significant fees, paid in Chinese currency and various cryptocurrencies. This comes as Iran enforces a selective blockade of the strait, which has already cut traffic by 90 percent and pushed oil prices up around the world. The system is more organized than it might seem. Iran has created a grading system, from one to five, for countries based on how friendly they are toward Iran. More friendly nations may get better rates, with fees potentially starting as low as $1 per barrel of oil on board. Given that a large tanker can carry around two million barrels, and that crude oil was priced at $108.32 per barrel at the time of writing, the fees add up quickly, according to The Independent. Before any deal is made, ships must go through a vetting process and cannot have any ties to the United States, Israel, or any country Iran considers hostile. Once cleared, payment is settled in Chinese yuan or stablecoins, cryptocurrencies pegged to currencies like the dollar or euro to keep their value stable. Iran has quietly turned a global chokepoint into a profitable and organized business Once payment goes through, ships are given a specific route and a secret passcode. This passcode is broadcast as the ship approaches the Strait, and a patrol boat then comes out to escort the vessel through. Ships are also reportedly expected to raise the flag of the nation that negotiated their passage, a clear sign of who has paid. Shipping intelligence firm Windward has been tracking the situation closely, noting that almost all journeys over the past three weeks have been rerouted. Instead of the usual path, ships are now going through a narrow channel north of Larak Island, with some queuing up and waiting for clearance, and others being turned back. Vessels wanting to transit the Strait of Hormuz need to be from friendly countries, and some have to pay fees in Chinese currency or crypto before being escorted through the strait.https://t.co/O7jn9NDMe1 pic.twitter.com/9zr4cwRtE1— Annmarie Hordern (@annmarie) April 2, 2026 Windward’s data from March 31 showed that 36 percent of transits were on vessels currently under US sanctions, and 27 percent were Greek-owned bulk carriers carrying agricultural goods to or from Iran. Iran’s parliament committee reportedly approved a plan to impose a formal toll on foreign ships, according to local media. BREAKING: Iran says the Strait of Hormuz will remain closed long-term for both the US and Israel.US oil prices have officially marked their highest close since June 2022.— The Kobeissi Letter (@KobeissiLetter) April 2, 2026 This move is widely considered a breach of international law, but it signals Iran’s intent to officially monetise its control over the Strait. The Strait of Hormuz is a critical passage, typically carrying around a fifth of the world’s oil and gas supply. Britain is set to host talks on Thursday to form a coalition of countries to explore ways to reopen the Strait. British foreign minister Yvette Cooper will chair a virtual meeting with about 35 countries, including France, Germany, Italy, Canada, and the United Arab Emirates. But the United States is not expected to attend. Critics who have been questioning Trump’s approach to foreign policy decisions note that President Trump had previously said the Strait could open “naturally” and that it was the responsibility of countries relying on the waterway to ensure it stays open. A French-owned container ship just crossed the Strait of Hormuz, reportedly the first Western European vessel to do so since the Iran war began.The CMA CGM Kribi broadcast its journey openly, hugging the Iranian coast between Qeshm and Larak islands.You don't do that… https://t.co/z0ZRZuOQRa pic.twitter.com/MHUZDvdPhw— Mario Nawfal (@MarioNawfal) April 3, 2026 According to Financial Times, the threat of prolonged Iranian control over the Strait is pushing Gulf countries to seriously look at alternative pipeline routes that would bypass it entirely. Saudi Arabia’s 1,200-kilometre East-West pipeline, originally built in the 1980s, has become especially valuable, delivering 7 million barrels of oil daily to the Red Sea port of Yanbu while completely avoiding Hormuz. Saudi Arabia is now considering whether to expand this pipeline’s capacity or build new routes to move more of its 10.2 million barrels of daily production. Concerns about Trump’s fitness and focus during key global crises have added to the uncertainty around how the US plans to engage with the situation. One option being explored is the revival of the India-Middle East-Europe Economic Corridor (IMEC), which would link India to Europe through the Gulf, offering another major alternative to the Strait.