Tehran is pushing ahead with a plan to charge ships for passing through the Strait of Hormuz and demand payment in Iranian rials, a move that builds on earlier collections in Chinese yuan and signals fresh efforts to sidestep the US dollar in global energy trade.
The head of Iran’s Parliament National Security Commission announced the proposal, which would formalize transit fees for vessels using the narrow waterway linking the Persian Gulf to the Gulf of Oman.
According to an X post from Iran’s consulate general in Mumbai on Friday, April 10, the fees would be settled in the national currency, the rial.
The parliamentary committee has already approved elements of the broader Strait of Hormuz management plan, including financial arrangements and a rial-based toll system.
This comes as US and Iranian delegations prepare for talks in Islamabad, Pakistan, aimed at turning a fragile two-week ceasefire into a more lasting agreement.
The truce, mediated by Pakistan, came after weeks of conflict that included US-Israeli strikes on Iran and Iranian retaliation that disrupted shipping.
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The Strait handles roughly one-fifth of the world’s oil and liquefied natural gas shipments. During the recent blockade and selective reopenings, Iran’s Revolutionary Guard set up what shipping trackers called a de facto “toll booth” system.
The vessels were required to provide manifests, crew information, and routing plans for verification purposes. Some of the vessels opted to pay for their safe passage, with at least two having made payments in Chinese yuan by late March, according to Lloyd’s List.
Reports put individual fees around $2 million per vessel in some cases, though exact numbers varied, and not every ship paid directly.
China buys the vast majority of Iran’s oil exports and has already shifted much of that trade into yuan settlements to dodge sanctions. Requiring or encouraging yuan for Hormuz transit fees extends that pattern.
Al Jazeera reported this week that both countries are actively exploring ways to chip away at dollar dominance in energy markets.
Beijing’s commerce ministry appeared to acknowledge the yuan payments in a social media post referencing the Lloyd’s List findings.
Iran’s local currency struggles.
Iran’s rial has faced severe pressure for years, hitting record lows against the dollar amid sanctions and economic strain.
Officials see the toll plan as a way to generate revenue, potentially tens of billions annually if scaled, and boost demand for the domestic currency.
The parliamentary proposal includes rules for security services, protecting the environment, and keeping ships linked to the US, Israel, or countries that impose unilateral sanctions from sailing through the Strait.
A section of the Iranian news outlets has said the system could bring in more than $100 billion a year, but that figure is based on full compliance and traffic levels that remain well below normal.
Iran’s bold move makes things even harder for the Trump administration, which has been trying to put as much pressure as possible on Iran.
With talks underway in Islamabad this weekend, Iran’s insistence on formal control over the strait, including its proposed legal framework for fees, sits on the table as a core demand.
Tehran has tied reopening and security guarantees to the lifting of sanctions and to greater say over the waterway.
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US officials have pushed back against any permanent Iranian chokehold, but the de facto practices during the conflict showed how quickly traffic can drop when Tehran restricts access.
Daily transits fell sharply from over 100 ships before the fighting to fewer than 10 at points, according to maritime data.
Shipping sources say many operators still use diplomatic clearances rather than direct payments, and that sanctions make the legal risks very high.
But the practice of yuan settlements has already created a precedent. It is said that one Chinese boxship paid through middlemen.
Asian importers and Gulf states have quietly worked out their own deals to keep oil and gas flowing. For example, Pakistan, Malaysia, and other countries have received limited access for their flagged ships.
The real toll proposal is still just a plan in Parliament and not yet law, but it establishes official rules that have already been tested on the water.
If implemented, it would mark a concrete step toward pricing access to a global chokepoint outside the dollar system.
