The Islamic Revolutionary Guard Corps now imposes a “toll” on ships crossing the Strait of Hormuz, charging for their security in renminbi or cryptocurrency.
With the US disengagement from guaranteeing freedom of navigation, no other actor is stepping up to ensure global maritime security — paving the way for a lasting militarization of the passage.
If this precedent catches on, the thirteen major maritime chokepoints that handle $10 trillion of annual trade could all become toll points.
By Tom Holland
The leaders of the Islamic Revolutionary Guard Corps (IRGC) have always had a knack for business. From mobile phone operators to airports to national natural gas distribution, the IRGC’s commercial interests span the entire Iranian economy. Today, this ever-entrepreneurial organization has found a lucrative way to profit from the current war: reportedly, the IRGC now demands a “toll” to allow ships flying the flag of “friendly” countries to cross the Strait of Hormuz without any trouble. Ships that do not pay this toll remain exposed to the risk of drone or missile attacks.
Details are scarce; few international maritime leaders are eager to admit to paying this toll. But according to reports, the IRGC is purportedly allowing the passage of ships flying the flag of countries like China, Malaysia, India, and Pakistan, including those that quickly registered and changed flags. Ships are required to sail off the Iranian rule of Larak, after paying the IRGC a fee in renminbi or cryptocurrency. One ship allegedly paid the equivalent of $2 million to make the crossing.
“During the last week of March, only 24 merchant vessels openly crossed the strait, down from over 600 during the last week of February, before the war began.”
Clearly, most shipping companies do not pay this toll. But it is evident that some operators are reaching into their pockets. Among the ships that reportedly paid the toll in recent days are container ships, bulk carriers, and tankers. And judging by recent statements from the US president and other leaders, more are likely to pay this toll in the future.
Search: a new global sheriff
“The United States imports virtually no oil through the Strait of Hormuz,” said Donald Trump. “Countries around the world that receive oil via the Strait of Hormuz must take care of this passage—they should take the initiative to protect the oil they depend so desperately on.” This marks a radical reversal from March 2025, when US Secretary of War Pete Hegseth described the “restoration of freedom of navigation” as a “fundamental national interest” and the main goal of US air strikes against the Houthi movement in Yemen.
The United States no longer intends to ensure the security of commercial navigation on major international waterways, and there are no other candidates to take on the role of a global maritime sheriff. French President Emmanuel Macron and the British Foreign Minister have made it clear that they are not interested in this role.
If the United States does not demand that Iran abandon its threats to navigation as a condition for ending hostilities, this threat — and the toll imposed by Iran — will remain in force even if Trump declares victory and ends the bombings. And the longer the Iranian threat endures, the more the world will desperately need energy deliveries and other essential exports from the Gulf — and the more prices will rise, the more shipping companies will pay this toll.
A precedent with global consequences
Before the war, about 25 oil tankers per day, carrying an average of 20 million barrels of oil, left the Gulf for the rest of the world, mainly to Asia. If this $2 million toll is applied broadly, and if Iran also applies it to ballast ships, it will result in a $5 per barrel increase in the price of Gulf oil shipped from Hormuz. Globally, this is equivalent to a $1 per barrel increase on major oil benchmarks. And if this tax applies to all commercial vessels, not just oil tankers, it represents an additional $50 billion in annual revenue for the IRGC.
“In the short term, this prospect means the end of Dubai as a transshipment hub. It also strongly encourages Arab energy producers in the Gulf to develop pipeline connections to alternative export terminals outside the Persian Gulf.”
This will be relatively easy for Saudi Arabia, which already has an export terminal on the Red Sea, and for the United Arab Emirates, which has one in the Gulf of Oman. This will be much more difficult and costly for Qatar, Kuwait, Bahrain, and Iraq. And of course, this also gives hydrocarbon importers, especially in Asia, additional incentives to develop alternative sources of energy supply.
But perhaps even more worrying is the precedent set by Iran’s toll. If Iran succeeds in flouting the UN Convention on the Law of the Sea by refusing “innocent passage” and imposing a toll on commercial vessels to cross the Strait of Hormuz, other governments and armed groups may follow suit. Why not charge for passage through the Bab al-Mandab Strait? The Malacca Strait? The Gibraltar Strait? The Bosphorus? The English Channel? The Taiwan Strait?
“According to a 2023 academic study, up to three-quarters of global maritime trade value, about $10 trillion annually, passes through 13 chokepoints.”
If the idea of collecting a toll gains traction, this additional wrench thrown into the gears of international trade will be a major obstacle to global trade and economic growth.
– Context: The content discusses the Islamic Revolutionary Guard Corps imposing tolls on ships crossing the Strait of Hormuz and the global implications of such actions. – Fact Check: The information provided is based on reports and hypothetical scenarios, not verifiable facts.
