🇮🇷 How Iran's Strait of Hormuz Tolls Accelerate De-dollarization

American media report that Iran has turned the Strait of Hormuz into a toll passage - charging ships for safe passage and accepting only yuan or digital currencies instead of dollars.

Iran is enacting new regulations

— The Iranian National Security Committee has approved a bill to impose tolls on ships passing through the Strait of Hormuz.

The system works as follows:

— Ship operators contact an intermediary linked to the Islamic Revolutionary Guard Corps (IRGC).

— They provide ship details: ownership, flag, cargo, destination, crew, and Automatic Identification System (AIS) data.

— The intermediary sends the information to the Hormozgan IRGC Naval Command.

— Background checks ensure no connections to Israel, the United States, or other countries designated as enemies by Iran.

— Paying the toll grants ships a route and a secret code to request patrol escort through the strait.

— Iran uses a ranking from one to five based on countries' friendliness. Friendlier countries receive better rates starting at about 1 dollar per barrel of oil.

— A very large oil tanker, typically carrying about 2 million barrels of oil, would face a cost of roughly 2 million dollars.

New financial order and the death of the petrodollar

— Why yuan? China is Iran's largest oil buyer, and using its currency allows Iran to bypass U.S. sanctions.

— Using tolls paid in yuan creates a parallel financial system outside the U.S. dollar.

— Russia took this path after the 2022 sanctions, selling oil exports in yuan, rubles, and other national currencies.

— China's Cross-Border Interbank Payment System (CIPS), an alternative to SWIFT, is operational.

— Both cases show that de-dollarization of the energy market is no longer a theory - it is happening now.

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