As vessels approach the Strait of Hormuz, they transmit a designated passcode via very high frequency (VHF) radio, after which a patrol boat escorts them safely through the passage; this route, which runs along island-dotted coastlines, has already gained recognition in the shipping industry as the “Iranian toll booth”; recently, operators of an oil tanker stranded in the Persian Gulf were offered safe passage through the Strait of Hormuz with assistance from the Iranian navy, but on the condition that the vessel change its registration and sail under the Pakistani flag, according to an executive of the company who spoke on condition of anonymity; however, the company ultimately declined the proposal from the Pakistani authorities; sources familiar with the matter said Iran had granted permission for around 20 Pakistani vessels to transit the strait, but at the time, the number of Pakistan-flagged ships in the الخليج was limited, prompting Islamabad to reach out to major global commodity traders to ask whether they would be willing to temporarily adopt the Pakistani flag to pass through the Strait of Hormuz; one informed source noted that Pakistan was particularly seeking large vessels, especially supertankers capable of carrying around two million barrels of oil, as facilitating their passage could demonstrate diplomatic success in easing the ongoing crisis; at least two major oil trading firms confirmed receiving such proposals, although Pakistan’s Ministry of Maritime Affairs has not issued any official comment on the matter; meanwhile, Iran’s Islamic Revolutionary Guard Corps (IRGC) has imposed unprecedented restrictions on maritime traffic through this strategically vital waterway, through which nearly one-fifth of the world’s oil and liquefied natural gas typically flows; industry insiders and officials directly involved in discussions said the IRGC has already begun collecting tolls from vessels transiting the strait, prioritizing ships from countries it considers friendly, while threatening those linked to nations it views as adversaries; according to Iran’s Fars News Agency, the country’s national security committee has approved a bill to impose fees on passage through the strait; sources also indicate that a more formal framework is being developed, under which ship operators must submit detailed information—including ownership, flag, cargo, destination, crew list, and Automatic Identification System (AIS) data—through an intermediary entity linked to the IRGC; this information is then forwarded to the IRGC Navy’s Hormozgan provincial command to verify whether the vessel has any connection to Israel, the United States, or other countries considered hostile by Iran; once a vessel is approved, negotiations over the toll begin; according to those involved, Iran is applying a ranking system from one to five, with vessels from friendly nations receiving comparatively favorable terms; for oil tankers, the initial bargaining rate is typically around $1 per barrel, payable in yuan or in stablecoins—cryptocurrencies pegged to stable assets; a very large crude carrier (VLCC) can usually transport around two million barrels of oil; after payment, the IRGC provides an authorization code and designated routing instructions, and vessels must sail under the flag of the country that finalized the transit arrangement, with some cases requiring formal re-registration; upon reaching the Strait of Hormuz, ships again transmit the passcode via VHF radio and are escorted by patrol boats through the passage; recent shipping data suggests that vessel traffic through the strait has slightly increased over the past week, although it remains significantly below pre-conflict levels.
Ships from various countries are safely crossing the Strait of Hormuz by paying Iran tolls in yuan and crypto
