According to a Bloomberg report, the Islamic Republic of Iran has effectively set up a “toll booth” in the Strait of Hormuz, according to which ships belonging to friendly and allied countries can pass through the strategic waterway of the Strait of Hormuz by paying a fee and completing certain formalities.

According to the report, ships are required to provide complete ownership information and details of their cargo to an entity affiliated with the Islamic Revolutionary Guard Corps before passing.

After registering the information, these ships are subject to security checks and then the negotiation phase begins to determine the passage fees.

The fee received for tankers usually starts at around one dollar per barrel of oil.

The Bloomberg report indicates that these payments are made in non-cash form and mainly using Chinese yuan or digital currencies (especially stablecoins).

Once payment is confirmed, a permit code is issued to the vessel and a naval escort is provided by the Iranian military for its safe passage through the Strait of Hormuz.

In some cases, vessels are asked to temporarily re-flag countries such as Pakistan in order to qualify for a permit.