UPDATE: Iran formalizes a toll booth regime in the Strait of Hormuz as shipping drops 90%, with vessels paying in yuan to pass through Iranian waters, cementing Tehran's chokehold on global oil flows.
Iran is cementing its chokehold on the Strait of Hormuz by establishing what shipping experts call a 'toll booth' regime for vessels transiting the world's most critical oil waterway. Ships must now enter Iranian territorial waters, submit to vetting by the Islamic Revolutionary Guards Corps, and in some cases pay fees in Chinese yuan to pass safely. Traffic through the strait has plummeted 90% since the war began, with only about 150 vessels transiting since March 1 compared to normal daily volumes before the conflict.
The system appears increasingly formalized. Iran submitted a letter to the UN's International Maritime Organization claiming it had 'implemented precautionary measures aimed at preserving maritime safety and security' within international law principles. Iranian parliament is reportedly working on legislation to codify fees for certain ships. Vessels must now route north around Larak Island into Iranian waters rather than using the traditional two-lane channel, placing them closer to the Iranian coastline and under IRGC control.
Iran's own oil exports remain largely intact at 1.6 million barrels loaded in March, similar to prewar levels, according to Kpler data. Most customers are small Chinese refineries unconcerned about U.S. sanctions. Meanwhile, Iran-affiliated ships now account for roughly 90% of recent transits through the strait. At least 18 ships have been attacked and seven crew members killed since the war began, though the UN has not specified which nation was responsible. About half of transiting vessels turn off identification systems before passage, reflecting the dangers involved.
Editor’s rationale — Iran's formalization of a 'toll booth' regime in the Strait of Hormuz represents a material shift in de facto control over critical global energy infrastructure with immediate implications for U.S. economic interests and allied nations; verified through shipping data, IMO communications, and multiple credible sources (Lloyd's List, UN IMO), though the story documents emerging trends rather than a single discrete institutional action.