Iran Starts To Formalize Its Chokehold On The Strait Of Hormuz With A 'Toll Booth' Regime

Traffic through the strait has fallen by 90% since the start of the Iran war, sending global oil prices skyrocketing.

FRANKFURT, Germany (AP) — Iran appears to be setting itself up as the gatekeeper for the Strait of Hormuz, the world’s most important artery for oil shipments. The move could cement Tehran’s de facto chokehold over the crucial waterway and formalize its ability to keep its own oil flowing to China.

Iranian communications to the United Nations maritime authority and the experience of ships transiting the strait suggest the creation of something akin to a “toll booth.” Ships must enter Iranian waters and be vetted by Iran’s Islamic Revolutionary Guards Corps. At least two vessels have paid for passage.

Traffic through the strait has fallen by 90% since the start of the Iran war, sending global oil prices skyrocketing and inflicting alarming shortages on the Asian nations that get their oil from Persian Gulf countries via the strait.

Only about 150 vessels, including tankers and container ships, have transited since March 1, according to Lloyd’s List Intelligence shipping information firm. That’s a little more than one day’s normal traffic before the war. Iran’s Kharg Island terminal loaded 1.6 million barrels in March — largely unchanged from prewar monthly loading totals, according to data and analytic firm Kpler. Most of the customers are small, private refineries in China that don’t care about U.S. sanctions.

A majority of the ships that have made it through in recent weeks headed east, out of the Gulf; Iran-affiliated ships accounted for 24% of transits, Greece 18%, and China 10% counted by ownership or flag registration. Yet on closer examination, vessels connected to Iran accounted for 60% of transits during the first part of the war and in the last few days, some 90%.