Iran has proposed collecting transit fees from commercial vessels passing through the Strait of Hormuz in its national currency, the rial, in a move that could challenge the dominance of the US dollar in global trade.
The proposal was disclosed on Friday (April 10) via a post on social media platform X by the Iranian Consulate General in Mumbai, citing the head of the Iranian parliament’s National Security Commission. According to the statement, a parliamentary initiative is underway to mandate that transit fees for ships navigating the vital maritime corridor be paid in Iran’s local currency.
The Strait of Hormuz is one of the world’s most critical energy transit routes, with a significant portion of global oil shipments passing through it daily. Any policy change affecting this route has immediate implications for global energy markets and international shipping.
Analysts suggest the move is part of a broader effort by Iran, in coordination with China, to weaken the global reliance on the US dollar. Both countries have been exploring alternative financial mechanisms in response to economic sanctions and geopolitical tensions.
Reports also indicate that during a recent period of heightened tensions and partial blockade in the strait—following attacks involving the United States and Israel—Iran had effectively implemented a “de facto toll system.” During that time, some vessels reportedly paid transit fees in Chinese yuan instead of dollars.
According to maritime intelligence reports, while the full extent of such payments remains unclear, at least two vessels had settled their transit fees in yuan as of March 25.
The proposal to formalize such payments in Iranian rial underscores Tehran’s ongoing strategy to assert greater control over the strategically vital waterway while advancing its broader economic and geopolitical objectives
