Iran Demands Ships Pay Bitcoin Toll To Transit Strait of Hormuz

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Note: This is a developing story.

Iran is demanding shipping companies pay a Bitcoin toll for oil tankers passing through the Strait of Hormuz as it seeks to retain control over the Strait of Hormuz during the two week ceasefire. 

Hamid Hosseini, a spokesperson for Iran’s Oil, Gas and Petrochemical Products Exporters’ Union, told the Financial Times that Iran will assess every tanker to ensure BTC payments have been sent and weapons aren't being transported. 

The BTC toll system will work as follows: 

• Tankers must email Iranian authorities with their specific cargo details.
• The tariff is set at $1 per barrel of oil. Empty tankers are allowed to pass for free.
• Upon assessment, vessels are given only a few seconds to pay the toll in Bitcoin. The Iranian spokesperson claimed this is so the funds can’t be “traced or confiscated”.
• Any vessel attempting unauthorized transit "will be destroyed."

The largest crude oil tankers carry around 3 million barrels of oil. This would mean shipping companies pay $3M worth of BTC for one ship. 

Bitcoin has been chosen as the preferred means of payment because it bypasses traditional financial channels, is non-sovereign, and is not exposed to sanctions.

The Bitcoin payment system is part of a wider, strict framework set out by Iran to control transport through the Strait of Hormuz. Other rules include: 

• Ships are required to submit detailed cargo and vessel information in advance.
• Ships will undergo background checks.
• Ships must follow designated routes closer to Iran’s coastline.
• Final decisions on passage are overseen by Iran’s Supreme National Security Council, with approval not guaranteed and delays expected.

Martin Kelly, head of advisory at maritime intelligence group EOS Risk, said the new regulations will mean only 10-15 ships can transit the strait per day. Before the war, it was common for 135 ships to transit the strait.