Skip to content

Secret codes and yuan fees: How Iran charges for Hormuz Strait passage

1 min read
Share

An operator of an oil tanker stranded in the Persian Gulf received an unusual offer - safe passage through the Strait of Hormuz with Iranian military escort, but under the condition that the ship changes registration and sails under a Pakistani flag.

Iran's Revolutionary Guard established a system of secret codes and fee collection for passage through the strait. Ship operators must contact an intermediary company linked to the Guard and submit data on ownership, flag, cargo, and crew.

After checking whether the ship has ties to Israel, the US, or other "hostile" countries, fee negotiations begin. Iran uses a country ranking system from one to five, with ships from "friendly" nations receiving more favorable terms. For oil tankers, the starting price is approximately one dollar per barrel, with payment in yuan or stablecoins.

After payment, the Guard issues a transit code and route instructions. The ship broadcasts the code via radio upon approach, and then a patrol boat escorts it through the waterway.

The legal basis for the charges remains unclear. International law experts assess that this is not legal, but ship owners face complex dilemmas between physical risks, high insurance costs, and sanctions.