PAY TO PASS: Iran Opening ‘Shakedown’ Operation in the Strait

Iran has begun demanding fees—reportedly as high as $2 million—from commercial vessels for safe passage through the Strait of Hormuz, according to Bloomberg, effectively turning one of the world’s most critical shipping lanes into a pay-to-pass chokepoint. Roughly 20% of global oil and liquefied natural gas flows through the strait.

It remains unclear who, if anyone, has paid. India, which recently sent four LPG carriers through Hormuz, pushed back, stressing that international law guarantees freedom of navigation and prohibits any state from imposing transit tolls.

Though the charges are being levied case by case, Tehran is reportedly considering formalizing them as part of a broader postwar arrangement—an idea likely to face fierce opposition from other Gulf Arab producers.

Iran is moving ahead with plans to charge up to $2 million per tanker to transit the Strait of Hormuz – CNN. pic.twitter.com/sy2TfMCcot

— Open Source Intel (@Osint613) March 22, 2026

The regime has few leverage points right now—but the Strait of Hormuz is one of them. Max Meizlish of the Foundation for Defense of Democracies explains the strategy: Iran is seeking to tighten its grip on the Strait of Hormuz — not by closing it, but by reopening it on its own terms and forcing countries to pay for passage. Multiple reports — first from the maritime news outlet Lloyd’s List, then Bloomberg — now confirm that the colloquially named “Tehran Toll Booth” is open for business. How it works is simple: Iran offers passage through its territorial waters in the strait in exchange for payment as high as $2 million. It’s a shakedown, and tankers are happy to pay. Traffic through the Tehran Toll Booth is growing steadily, with at least 20 ships transiting the corridor as of March 23…. The governments of India, Pakistan, Iraq, Malaysia, and China have all reportedly begun discussions with Iran over securing access to the corridor. Ships destined for India and China have already made their way through. Meanwhile, CNN reported earlier this month that Iran may authorize tankers to pass through the strait, provided their oil cargo is traded in Chinese yuan. President Donald Trump should take decisive action now — targeting the corridor’s military and financial support infrastructure — to strike at Iran’s control over the strait and deprive the regime of new, desperately needed funds (FDD).