Secret Codes And Chinese Yuan: Here's How Iran Plans To Turn Strait Of Hormuz Into Toll Route

Last Updated:April 03, 2026, 09:33 IST

The development follows a bill approved by Iran's lawmakers this week to levy fees for safe passage through the Strait of Hormuz.

Ships attempting to pass through the Strait of Hormuz may now be required to use secret identification codes and pay up to $2 million — either in Chinese yuan or cryptocurrencies—to avoid being targeted by Iran, according to a new report.

The development follows a bill approved by Iran’s lawmakers this week to levy fees for safe passage through the strategic waterway.

The newly outlined process will allow the tanker and cargo operators to buy their way through a company linked to the Islamic Revolutionary Guard Corps (IRGC), sources familiar with the matter told Bloomberg.

Once the IRGC has access to a vessel’s documentation, ships would be required to sail under the flag of a non-enemy country and transmit a confidential high-frequency signal. This would notify Iranian naval forces, which could then escort the vessel safely through the strait.

The reported rules are set to effectively hand Tehran sweeping control over the Strait of Hormuz, a vital trade corridor through which about 20 percent of the world’s oil supply passes.

As per the report, the vessels are required to submit comprehensive details, including ownership, flag, cargo, destination, crew information, and data from their Automated Identification System (AIS), which tracks a ship’s movement history, before entering the waterway.

The IRGC Navy will then review the submitted information to confirm that ships have no ties to the United States or Israel. Once cleared, shipping companies negotiate the transit fee, with oil tankers starting at roughly $1 per barrel of crude, payable in Chinese yuan or stable cryptocurrencies.

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