Iran’s blockade and toll system in the Strait of Hormuz disrupting global shipping
Consensus Summary
Iran has effectively blocked the Strait of Hormuz since the US-Israel war began, reducing daily ship traffic by 95% and imposing a de facto toll system charging up to $2 million per vessel for passage. The IRGC controls a new northern shipping corridor near Iranian waters, where vessels must be 'verified' before transiting, creating a 'tollbooth' regime. Oil exports from Iran remain stable at 1.6 million barrels/day, benefiting from higher prices and US sanctions relief, while global shipping costs have surged due to the disruption. Over 20 ships have been attacked or damaged, and 20,000 seafarers face supply shortages, with normal traffic unlikely to return for months. India and China are leading diplomatic efforts to secure safe passage, while Greece and other shipowners exploit inflated charter rates to risk the strait. The Guardian highlights Iran’s 'safe corridor' as a controlled access mechanism, while ABC emphasizes the financial incentives and selective exemptions for allied vessels. Contradictions exist in transit volume estimates and the exact structure of Iran’s new routing system, but both sources agree on the severity of the blockade’s economic and geopolitical impact.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Iran has reduced daily ship traffic through the Strait of Hormuz by about 95% since February 28, from a pre-war average of 138 vessels/day to roughly 5-6 large vessels/day (ABC) or fewer than 40 vessels entering/exiting in March (Guardian).
- Iran is enforcing a 'selective closure' or 'tollbooth' regime, directing vessels through a new northern shipping corridor near Iranian waters (ABC, Guardian).
- Iran has reportedly charged at least two ships $2 million each for passage through the strait, with payments made in Chinese yuan (ABC, Guardian).
- Iran’s Islamic Revolutionary Guard Corps (IRGC) controls the strait’s de facto closure, with Alireza Tangsiri (IRGC navy head) reportedly overseeing it (ABC, Guardian).
- Iran’s crude oil exports remain relatively stable at ~1.6 million barrels/day (ABC), despite the blockade, benefiting from higher oil prices and US sanctions relief.
- More than 20 ships have been attacked or damaged in the region since the war began, including the Palau-flagged Skylight tanker (Guardian).
- The UN’s International Maritime Organization (IMO) has warned of 20,000 stranded seafarers facing supply shortages (Guardian).
- India and China are engaging in direct diplomacy with Iran to secure safe passage for their vessels (ABC, Guardian).
- Greek, Chinese, Indian, UAE, and Marshall Islands-owned ships are among those transiting the strait (ABC, Guardian).
- Normal shipping patterns are unlikely to return for months even after the conflict ends (Guardian).
- Over 1,000 vessels remain anchored or in port due to risks, with maritime insurance available but at higher premiums (Guardian)
Points of Difference
Details reported by only one source:
- About 150 ships transited the Strait of Hormuz between March 1-26 (including 46 oil tankers), down from a pre-war average of 50 oil tankers/day (ABC analysis).
- Iran’s new law formalizing the toll system was expected to be finalized by mid-March (ABC).
- A Japanese-owned bulk carrier (flagged as 'China Owner') was the first ship bound for Australia to transit the strait (ABC).
- Dr Sal Mercogliano (former merchant mariner) stated Iran is coordinating with vessels for passage via 'positive identification' near Iranian coasts (ABC).
- India’s Pine Gas LPG Carrier crossed the strait and was expected to reach port this week (ABC).
- Indian Foreign Minister Subrahmanyam Jaishankar indicated no 'blanket arrangement' exists for Indian-flagged ships, despite diplomatic efforts (ABC).
- Sir John Jenkins (retired British diplomat) suggested re-flagging or agreed protocols (e.g., 'CHINA OWNER' transponders) may be used for identification (ABC).
- Iran’s Kharg Island hosted one oil tanker and two supertankers on March 17, exporting ~1.6M barrels/day on average (ABC).
- The US lifted sanctions on Iranian oil to boost global supply, increasing Iran’s revenue from higher oil prices (ABC).
- Greek shipowners are reportedly taking advantage of inflated shipping costs (10x normal value) to run the strait (ABC).
- Tehran announced it would permit 'non-hostile vessels' (excluding US/Israel-linked ships) to transit, defining a 'safe corridor' near Larak Island (Guardian).
- Iran’s IRGC does not act as a unified organization, risking factional delays or seizures despite official clearance (Guardian).
- Israel killed IRGC navy head Alireza Tangsiri on March 22, who was linked to the strait’s closure (Guardian).
- Windward data logged four vessels transiting with AIS on on March 24 (one inbound Panama-flagged tanker, three outbound vessels), while two cargo ships entered the Gulf without transmitting (Guardian).
- Over 30 countries (including UK, France, Germany) signed a joint statement to reopen the strait, with Britain proposing an international security summit (Guardian).
- Maritime insurance remains available but demand has dropped due to safety concerns (Guardian).
- The Skylight tanker (Palau-flagged) was the first oil tanker hit, killing its Indian captain and crew member (Guardian).
- No vessels have been damaged since March 22, but analysts expect months to restore normal shipping (Guardian).
- The strait carries ~1/5 of global oil/gas and ~1/3 of global fertilizers (Guardian).
- India’s 40% of crude oil imports and 50% of LNG/90% of LPG shipments rely on the strait (Guardian).
Contradictions
Conflicting information between sources:
- ABC reports Iran’s new toll law was expected to be finalized by mid-March, while the Guardian does not mention this timeline or law.
- ABC states ~150 ships transited March 1-26 (including 46 oil tankers), but the Guardian says ~40 vessels entered/exited the entire month of March.
- ABC claims Iran’s 'selective closure' allows ~5-6 large vessels/day, while the Guardian notes a 'trickle' with slight upticks (e.g., four vessels on one day).
- The Guardian says Iran’s 'safe corridor' is a northerly route near Larak Island, but ABC describes it as a corridor 'inside Iranian waters' without specifying Larak Island.
- ABC reports Iran charges $2M per ship (with a senior official confirming this), while the Guardian only states 'at least two vessels have paid' without specifying the amount.
Source Articles
'You're going to run the strait': The financial incentive for braving Iran's blockade
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‘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...