Iran Tightens Grip on Strait of Hormuz with New Toll System

• Maritime traffic through the Strait of Hormuz has plummeted by 90% since the onset of the conflict, with only 150 vessels transiting since March 1.
• The Islamic Revolutionary Guard Corps (IRGC) has established a vetting system requiring ships to submit cargo, owner, and crew details to "approved intermediaries."
• Iran is reportedly formalizing a "toll booth" regime, with at least two vessels already documented paying for passage in Chinese yuan.

A New Gatekeeper in the Strait

Iran is moving to cement its role as the primary gatekeeper of the Strait of Hormuz, the world's most critical artery for oil. Data from Lloyd’s List Intelligence suggests that the IRGC has imposed a de facto toll system, forcing ships to deviate from international lanes into Iranian territorial waters near Larak Island. This shift allows Tehran to prioritize its own exports; despite the regional instability, Iran’s Kharg Island terminal loaded 1.6 million barrels in March, largely destined for private refineries in China.

Vetting and Escort Procedures

Under the new regime, vessels seeking safe passage must undergo "geopolitical vetting." This process involves submitting sensitive data to intermediaries linked to the IRGC. Once approved, ships receive a specific code and are escorted by Iranian military vessels. The security environment remains dire, with the International Maritime Organization (IMO) reporting that 18 ships have been struck and 7 crew members killed. To mitigate risks, nearly half of the vessels currently transiting the Strait are disabling their radio identification systems to hide their movements.

Legal and Economic Implications

The international community has reacted with alarm to these developments. Sultan al-Jaber, head of the Abu Dhabi National Oil Co., characterized the weaponization of the waterway as "economic terrorism" that destabilizes global markets. While Article 19 of the U.N. Law of the Sea Treaty mandates "innocent passage" for peaceful vessels, Iranian lawmakers are currently drafting a bill to formally codify these transit fees. Critics argue this practice is a violation of international law and likely bypasses U.S. and European sanctions on the IRGC.