Iran Establishes ‘Toll Booth’ System at Critical Oil Shipping Route

Iran is creating a gatekeeping system at the Strait of Hormuz, forcing ships to pay fees and get approval from Revolutionary Guards to pass through the vital oil shipping lane. Traffic has dropped 90% since conflicts began, with Iran-connected vessels making up most successful transits.

Tehran is positioning itself as the controller of the Strait of Hormuz, the world’s most critical oil shipping passage, establishing what experts describe as a payment system for vessel transit through the strategic waterway.

The Islamic Revolutionary Guards Corps now requires ships to enter Iranian territorial waters for inspection and approval, with evidence suggesting at least two vessels have made payments for safe passage, according to maritime intelligence sources.

Since March 1st, vessel movement through the strait has plummeted by 90% due to ongoing regional conflicts, causing oil prices to surge worldwide and creating severe supply shortages for Asian countries dependent on Persian Gulf petroleum.

Lloyd’s List Intelligence reports only approximately 150 ships, including both tankers and cargo vessels, have successfully navigated the passage since early March – representing just over one day’s typical pre-conflict traffic volume.

Despite the dramatic reduction in overall shipping, Iran’s Kharg Island facility maintained its oil loading capacity at 1.6 million barrels during March, matching pre-war monthly totals. The primary buyers remain small Chinese refineries that disregard U.S. sanctions.

While most successful transits initially involved various international vessels, Iranian-affiliated ships now comprise roughly 90% of recent passages, compared to 60% during earlier stages of the conflict.

Approximately half of all vessels disable their tracking systems before entering the strait, reactivating them only after reaching the Gulf of Oman. This cautious behavior stems from legitimate safety concerns, as the International Maritime Organization reports at least 18 ship attacks and seven crew member deaths, though the attacking nation remains unspecified.

“Iran’s IRGC has imposed a de facto ‘toll booth’ regime in the Strait of Hormuz,” Lloyd’s List Intelligence stated.

Rather than using the traditional central shipping lanes, vessels increasingly navigate northward around Larak Island, placing them within Iranian territorial boundaries and closer to the Iranian shoreline.

Ship operators seeking safe passage must provide detailed information to Revolutionary Guard-approved intermediaries, including cargo manifests, ownership details, destinations, and complete crew rosters. Approved vessels receive identification codes and Revolutionary Guard escorts, with oil shipments receiving priority treatment through “geopolitical vetting.”

“While not all ships are paying a direct toll, at least two vessels have and the payment is settled in yuan,” Lloyd’s List reported, referencing Chinese currency.

Some vessels have gained passage through diplomatic intervention, including two Indian ships carrying liquid petroleum gas.

Iranian officials sent correspondence to the International Maritime Organization on Tuesday, stating they had “implemented a set of precautionary measures aimed at preserving maritime safety and security,” claiming compliance with international legal principles.

Iranian parliamentary members are reportedly developing legislation to officially establish fees for strait passage. Lawmaker Mohammadreza Rezaei Kouchi told Fars and Tasnim news agencies that “parliament is pursuing a plan to formally codify Iran’s sovereignty, control and oversight over the Strait of Hormuz, while also creating a source of revenue through the collection of fees.”

The International Maritime Organization has denounced vessel attacks and advocated for coordinated international efforts to maintain navigation freedom while ensuring safe passage.

United Arab Emirates official Sultan al-Jaber, who heads Abu Dhabi National Oil Company, delivered sharp criticism during a Middle East Institute event in Washington.

“Weaponizing the Strait of Hormuz is not an act of aggression against one nation,” al-Jaber declared. “It is economic terrorism against every consumer, every family that depends on affordable energy and food. When Iran holds Hormuz hostage, every nation pays the ransom, at the gas pump, at the grocery store and at the pharmacy. No country can be allowed to destabilize the global economy in this way.”

The United Nations Law of the Sea Treaty’s Article 19 mandates countries permit “innocent passage” for peaceful, law-abiding vessels through their territorial waters.

“There’s no provision in international law anywhere to set up a toll booth and shake down shipping. … This is Iran using the element that they have right now, which is control of the Strait of Hormuz,” explained Sal Mercogliano, a maritime historian at Campbell University in North Carolina.

Gulf Cooperation Council Secretary General Jasem Mohamed al-Budaiwi characterized Iran’s fee collection as “an aggression and a violation of the United Nations agreement on the law of the sea.”

These payment arrangements likely violate American and European sanctions targeting the Revolutionary Guard, a powerful Iranian institution controlling ballistic missiles and involved in suppressing recent domestic protests.