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FINWIRES

Iran's Crypto-Based Hormuz Tolls Seen Generating Up to $20 Million Daily, TRM Labs Says

-- Iran's toll framework outlines charges of up to $2 million per vessel for transit of the Strait of Hormuz, payable in crypto or Chinese yuan, with daily revenue estimated at about $20 million, TRM Labs said in a Thursday note.

Under the system, ship operators must first contact an Islamic Revolutionary Guard Corps-linked unnamed intermediary and submit detailed vessel data, including ownership, cargo, routing, and crew information for approval.

Authorities then screen vessels for links to the US or Israel, with some ships denied passage entirely.

Others are categorized under a five-tier system based on "friendliness," TRM said, adding that "friendlier nations" pay lower toll charges.

Additionally, payments are negotiated based on crude volumes and vessel classification, with oil tanker fees typically ranging from about $0.50 per barrel to $1/bbl, and rates varying by nationality tier.

Additionally, fully laden Very Large Crude Carriers, which carry about 2 million barrels, are expected to pay about $2 million per tanker, according to TRM.

For container ships and other vessel classes, charges are negotiated individually.

Rates also vary by a vessel's country classification, while fees for container ships and other vessel types are determined on a case-by-case basis, according to the note.

Payments must be made either in digital assets or in Chinese yuan via Kunlun Bank or through the Chinese payment network, known as CIPS or the Cross-Border Interbank Payment System, the note added.

Following the payment, vessels will receive a VHF-broadcast passcode and are guided through a northern corridor near Larak Island by an IRGC naval escort.

Iran's use of digital assets for transit tolls marks a notable example of cryptocurrency enabling state-level sanctions evasion, with payments routed outside traditional financial systems, TRM Labs said.

Iran formalized the framework through its Strait of Hormuz Management Plan in March.

"At current traffic levels, public estimates suggest the toll system could generate up to $20 million per day from oil tankers alone, with $600-800 million per month possible if liquefied natural gas vessels are included," according to TRM.

"The unnamed intermediary administering toll collection remains publicly unidentified - a critical gap for any future enforcement or sanctions action targeting the payment network," according to TRM Labs.

Crypto transactions enable faster settlement outside US banking channels, making it difficult to monitor or block payments in real time, the note added.

Despite a Pakistan-brokered ceasefire taking effect on Apr. 7, tolls remain active, TRM said.

"Tolls remain in effect, and Iran's institutional infrastructure... suggests no near-term rollback," according to TRM.

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