Every tanker intending to pass through the Strait of Hormuz in the next two weeks will have to pay Iran a toll in cryptocurrencies. This was stated to the Financial Times by a spokesperson for the Iranian association of oil, natural gas, and petrochemical exporters, which works closely with the Tehran government.
“Iran must control what enters and leaves the strait to ensure that these two weeks [of ceasefire with the United States, editor’s note] are not exploited for arms transfers,” the spokesperson explained to the British newspaper. “Everything can pass, but the procedure will take time for each ship, and Iran is in no hurry.”
HOW THE (BITCOIN) TOLL FOR THE STRAIT OF HORMUZ WILL WORK, ACCORDING TO IRAN
The spokesperson added that oil tankers and LNG carriers will have to transit the strait staying close to the northern coast, along the Iranian side. They will also be required to email the Iranian authorities the cargo details; subsequently, they will receive the toll amount to be paid in cryptocurrencies. The fee will be 1 dollar per barrel of oil; empty ships will be able to cross the strait for free.
“Once the email is received and the assessment by Iran is completed,” the spokesperson continued, “ships will be given a few seconds to make the payment in Bitcoin, to ensure they cannot be traced or confiscated due to Western sanctions on Iran.”
– Also read: Cryptocurrencies in exchange for weapons: how Iran tries to bypass sanctions
Unauthorized vessels will be destroyed.
TRUMP’S VERSION: A JOINT VENTURE WITH IRAN
American President Donald Trump – who a few days ago threatened to unleash hell in Iran if it did not open the Strait of Hormuz to navigation – said today to ABC News that the United States could form a “joint venture” with Iran for the security of this waterway.
When asked if he would allow Iran to impose tolls on ships crossing the Strait of Hormuz, Trump replied that “we are thinking of doing it as a joint venture. It’s a way to ensure its security.”
HOW MANY SHIPS ARE THERE IN HORMUZ?
The vessels blocked inside the Persian Gulf would be more than a thousand; according to Kpler, inside the Strait of Hormuz there are 187 tankers carrying 172 million barrels of crude oil and refined products. Under normal conditions, it could take a couple of weeks to allow all these ships to leave the region. At the moment, however, it is not clear when the strait will be reopened.
HAS THE STRAIT BEEN NATIONALIZED BY IRAN?
The Strait of Hormuz is the most important waterway in the world for fossil fuel trade – under normal conditions, about one fifth of all gas and oil transported by sea passes through it every day – and connects the Persian Gulf with the Gulf of Oman, thus ensuring access to the Arabian Sea and the Indian Ocean. For the hydrocarbon-producing countries in the region, in short, freedom of navigation through this passage is crucial.
According to Neil Shearing, economist at Capital Economics, a toll of 1 dollar per barrel would have “only a modest impact on global energy prices, although, in practice, it could amount to a partial de facto nationalization” of the Strait of Hormuz. “In our baseline forecasts, Brent crude will average around 95 dollars per barrel in the second quarter, then fall towards 80 dollars by the fourth quarter”: currently, Brent prices are above 90 dollars per barrel.
