Iran’s blockade and toll system in the Strait of Hormuz during the US-Israel war
Consensus Summary
Since the US-Israel war began on February 28, Iran has effectively closed the Strait of Hormuz, reducing daily vessel traffic from 138 to just 5-6 ships while imposing a de facto ‘toll booth’ system. Iran’s Islamic Revolutionary Guard Corps (IRGC) controls a new ‘safe corridor’ near Larak Island, where vessels must be verified before passage, with at least two ships reportedly paying $2 million each for transit. Oil exports remain steady at 1.6 million barrels daily, benefiting Iran’s economy amid global supply disruptions. Over 20 ships have been attacked or near-missed, including the Skylight tanker off Oman, killing two Indian crew members. China and India are leading diplomatic efforts to secure safe passage, with Indian Navy escorts deployed for LPG tankers, while the UK proposes an international summit to reopen the strait. Maritime insurance remains available but unaffordable for most, as shipowners face extreme risks and premium spikes. The blockade has stranded 20,000 seafarers, with no return to normal shipping patterns expected for months even after hostilities end.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- The Strait of Hormuz saw daily traffic drop from ~138 vessels pre-war to ~5-6 large vessels daily since February 28, with total March transits estimated at ~150 ships (ABC) or ~100 exits/40 entries (Guardian).
- Iran has imposed a ‘selective closure’ of the Strait of Hormuz, allowing passage for its allies and some tankers while blocking others, creating a ‘toll booth’ system (ABC/Guardian).
- Iran’s Islamic Revolutionary Guard Corps (IRGC) is overseeing the strait closure and has reportedly charged at least two ships $2 million each for passage (ABC: $2M; Guardian: $2M for a VLCC).
- Iran’s crude oil exports averaged 1.6 million barrels per day from March 1–23, with satellite imagery showing tankers at Kharg Island (ABC/TankerTrackers).
- More than 20 ships have been attacked or near-missed since the war began, including the Palau-flagged Skylight tanker off Oman, killing two Indian crew members (Guardian).
- Iran has redirected vessels to a ‘safe corridor’ near Larak Island in Iranian territorial waters for verification, with ~10 large vessels observed north of Larak on March 24 (Guardian/Windward).
- China and India are engaging in direct diplomacy with Iran to secure safe passage for their ships, with Indian Navy escorts deployed for LPG tankers (ABC/Guardian).
- The UN’s International Maritime Organization (IMO) has warned of 20,000 stranded seafarers in the Gulf facing dwindling supplies (Guardian).
- Israel killed IRGC navy head Alireza Tangsiri on March 22, reportedly responsible for the strait closure (Guardian).
- Maritime insurance remains available but at higher prices, with no recent demand for strait coverage (Guardian).
Points of Difference
Details reported by only one source:
- ABC analysis shows ~46 oil tankers transited the strait between March 1–26, down from a pre-war average of ~50 daily (ABC/JMIC).
- About 12 vessels (including Karachi, a Karachi-owned tanker) have passed through Iran’s coastal waters as part of a new corridor, with tracking data showing proximity to Iranian shores (ABC/Sal Mercogliano).
- Greek-owned ships account for the second-highest number of strait crossings due to Greek shipowners’ willingness to pay premiums for risky routes (ABC/Dr Mercogliano).
- A Japanese-owned bulk carrier (flagged as ‘China Owner’) was the first ship bound for Australia to transit the strait after the war started (ABC).
- Iran’s parliamentary official Alaeddin Boroujerdi confirmed a new law formalizing the toll system, expected to be finalized next week (ABC/Iranian state media).
- India’s Foreign Minister Jaishankar stated there is no ‘blanket arrangement’ for Indian-flagged ships, despite diplomatic efforts (ABC/FT).
- India’s Pine Gas LPG Carrier transited the strait on March 26, escorted by Indian Navy warships (ABC/Indian Government).
- Former merchant mariner Sal Mercogliano noted shipping costs have spiked 10x, incentivizing risky transits (ABC).
- Lloyd’s List Intelligence estimates only ~100 vessels exited the Gulf and ~40 entered in March, totaling ~138 transits for the entire month (Guardian/Lloyd’s List).
- The Guardian’s visual guide highlights that 20 ships have been attacked or near-missed, with no damage reported since March 22 (Guardian/Lloyd’s List).
- Payments for passage were reportedly made in Chinese yuan due to IRGC sanctions (Guardian).
- Windward data logged two cargo ships entering the Gulf on March 24 without transmitting their position, hugging the Oman coastline (Guardian/Windward).
- The UK offered to host an international security summit to reopen the strait, with 30+ countries signing a joint statement (Guardian).
- Iran’s ‘safe corridor’ is described as a northerly route between Larak Island and the Iranian mainland for verification (Guardian).
- The Guardian notes Iran’s approval does not guarantee safety, as IRGC factions may still delay or seize vessels despite clearance (Guardian/Lloyd’s List).
- Four vessels were observed transiting on March 24 (three exiting, one entering), all with AIS transmitters on (Guardian/Windward).
Contradictions
Conflicting information between sources:
- ABC reports ~150 ships transited the strait between March 1–26, while the Guardian’s Lloyd’s List data estimates only ~100 exits/40 entries for the entire month of March.
- ABC states Iran charges $2 million per ship as a transit fee (quoted by Boroujerdi), but the Guardian does not confirm this figure beyond one reported $2M payment for a VLCC.
- ABC claims Greece owns the second-highest number of ships crossing the strait, while the Guardian does not mention Greek shipowners’ role specifically.
- The Guardian says no vessels have been damaged since March 22, but ABC implies ongoing risks with ‘threat of attack’ and ‘selective closure’ dynamics.
- ABC highlights India’s lack of a ‘blanket arrangement’ for Indian-flagged ships, while the Guardian does not address this diplomatic nuance directly.
Source Articles
‘Tehran’s tollbooth’: a visual guide to how a trickle of ships still passes through strait of Hormuz
Many of the vessels willing to make the crossing are taking an alternative route through Iranian waters Threats to shipping have effectively closed the strait of Hormuz since the US-Israel war on Iran...
'You're going to run the strait': The financial incentive for braving Iran's blockade
Iran is running one of the world's most critical shipping lanes as a "toll booth" and has likely made hundreds of millions of dollars of extra income from selling its own oil since the US and Israel w...