Iran demands crypto for Strait of Hormuz passage amid ongoing crisis

TEHRAN (Azat TV) – Iran has begun demanding cryptocurrency payments for vessels seeking passage through the Strait of Hormuz, a critical global energy chokepoint that has been severely disrupted by an ongoing conflict. The demand comes as ship traffic through the strait has plummeted to less than 10% of normal volumes, causing significant disruptions to global oil supply.

Hormuz Chokepoint Remains Severely Restricted

Ship traffic through the Strait of Hormuz was operating at well below 10% of normal volumes as of Thursday, April 9, despite a recent U.S.-Iran ceasefire. Iran has asserted its control by warning ships to adhere strictly to its territorial waters. Hundreds of tankers and other vessels have been stranded in the Gulf since the conflict began on February 28, leading to a 20% reduction in global oil supply, marking the most significant disruption of its kind in history, according to tbsnews.net. Prices for some physical oil grades have reached new all-time highs as the crisis shows no immediate signs of abating. The CEO of UAE state oil giant ADNOC stated on Thursday that Iran must open the strait unconditionally.

Iran’s New Toll and Cryptocurrency Demands

Amidst the standstill, reports have emerged suggesting Iran intends to levy a toll on ships passing through the strait, with some estimates placing the figure at approximately $2 million. Ship-tracking data indicates that some vessels are already rerouting around Larak Island to exit the Gulf. However, the chief officer of the Indian-flagged Pine Gas LPG tanker, Sohan Lal, told Reuters that his vessel did not pay any toll to Iran for its transit and was not boarded by the IRGC. The International Maritime Organization (IMO), the UN’s shipping agency, stated that there is no international agreement permitting tolls for transiting international straits, warning that any such fee would set a dangerous precedent. In a significant development, Iran will demand toll payments in cryptocurrency to maintain control over Hormuz during the current two-week ceasefire, the Financial Times reported, citing Hamid Hosseini, a spokesperson for Iran’s Oil, Gas and Petrochemical Products Exporters’ Union.

Geopolitical Significance of Maritime Control

The strategic importance of maritime chokepoints like the Strait of Hormuz has been highlighted by recent geopolitical developments. As tensions sharpen, the ability of Iran to threaten this narrow corridor, through which approximately 20 percent of the world’s oil flows, can rattle the global economy overnight. This situation underscores a broader strategic logic concerning control over vital sea lanes that underpin economic and geopolitical power. The emphasis on rebuilding U.S. maritime capacity and securing strategic trade routes aligns with historical principles of sea power, which posit that national strength is derived from command of maritime routes. The concentration of global energy passing through these narrow passages emphasizes both their vulnerability and strategic significance. Efforts to degrade threats to Hormuz aim to secure this vital energy corridor and preserve freedom of navigation, a core tenet of Mahan’s theory of power, as noted by aol.com.

The introduction of cryptocurrency payments by Iran for passage through the Strait of Hormuz represents a novel tactic in its efforts to exert control and potentially generate revenue amidst a severe global energy supply crisis. This move leverages emerging financial technologies to bypass traditional financial channels and assert sovereignty over a crucial international waterway, signaling a new dimension in geopolitical leverage.