Riskwire | 16 May 2026
Iran has stopped threatening to charge ships for Strait of Hormuz transit. It is now doing it — and some vessels are paying.
Toll charges of $1M–$2M+ per vessel are being levied on ships transiting the world’s most critical energy chokepoint, which carries approximately 20% of global oil supply. At peak disruption in April 2026, over 230 loaded tankers were stranded inside the Gulf. Vessels seeking passage are escorted through Iranian territorial waters by Iranian patrol boats following payment verification, with settlements accepted in Chinese yuan and cryptocurrency — deliberately avoiding USD to sidestep sanctions screening.
The scheme violates UNCLOS Article 26, which explicitly prohibits coastal states from charging vessels for transiting international straits. The UK formally rejected it. The US went further, declaring its Navy would intercept vessels confirmed to have paid.
The compliance dimension is what makes this more than a geopolitical story. Payments are deposited directly into Iran’s Central Bank — a designated entity under OFAC, OFSI and EU sanctions. OFAC issued FAQ 1249 on 29 April 2026, followed by a full enforcement alert on 1 May, explicitly warning that toll payments may constitute prohibited transactions. Paying the toll may itself be the breach.
For institutions with dual US-China exposure, there is an additional layer. Chinese operators paying Iranian tolls sit in a live conflict-of-laws gap between OFAC enforcement and China’s Anti-Foreign Sanctions Law. No clean resolution exists — and that gap is sharpening.
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This article is for informational purposes only and does not constitute legal or compliance advice. Always consult a qualified professional.
