Iran turns Strait of Hormuz into a toll booth

Iran has effectively turned the world’s most critical oil shipping route into a controlled checkpoint, forcing vessels to seek clearance from the military before passing through the Strait of Hormuz.

Shipping intelligence reports say Tehran has already implemented a “de facto toll booth regime” in the strategic waterway. The move comes even as Iranian lawmakers prepare legislation to formally charge vessels for transit.

The development threatens to reshape global shipping through a chokepoint that carries roughly a fifth of the world’s oil supply.

IRGC tightens grip on the world’s busiest oil corridor

The system is controlled by Iran’s powerful Islamic Revolutionary Guard Corps navy, which now requires ships to submit documentation and obtain clearance codes before entering a controlled transit corridor.

According to maritime reports, vessels must provide ownership records, cargo details, crew lists and final destinations. The information is screened by the IRGC’s Hormozgan command for sanctions and “geopolitical vetting”.

If approved, ships receive routing instructions and an escort through Iranian territorial waters near Larak Island.

Traffic collapses as shipping lanes fall silent

The impact has been immediate. Since mid-March, dozens of vessels have used the IRGC-controlled route while traditional commercial lanes have largely emptied.

On Tuesday only four ships crossed the strait, according to maritime intelligence data. Several large vessels were seen waiting north of Larak Island, apparently queuing for authorised transit.

Others appear to be avoiding the system entirely, hugging the Omani coastline or switching off location transmitters to bypass Iranian oversight.

Some ships already paying tolls

Reports indicate that at least two vessels have paid direct transit fees, with payments settled in Chinese yuan. Many other crossings appear to have been secured through diplomatic intervention rather than cash payments.

Iranian officials argue the charges are justified because Tehran provides security in the waterway. Lawmakers say proposed legislation will formally establish Iran’s authority to collect fees from oil tankers and cargo ships.

Legal minefield for global shipping companies

The arrangement puts international shipping firms in a legal trap. The IRGC is designated as a terrorist organisation by the United States, meaning any payments could trigger criminal liability under US law.

Legal experts warn even indirect payments could be considered “material support” to a banned group. UK and EU sanctions regimes offer no protection either.

With billions in global trade at stake, security advisers say shipowners are scrambling for guidance as the strait — long treated as open international waters — risks becoming a militarised toll road.

Iran imposes 'toll booth regime' to allow Strait of Hormuz passage