FT: Iran to Demand Bitcoin Payments for Passage Through Strait of Hormuz

Iran demands bitcoin for Hormuz passage during ceasefire, reports FT.

During the ceasefire, Iran will require shipping companies to pay for passage through the Strait of Hormuz in cryptocurrency. This is reported by the FT, citing oil exporters.

A representative of the Iranian Union of Oil, Gas, and Petrochemical Products Exporters, Hamid Hosseini, stated that the country plans to charge any loaded tanker and inspect each vessel for weapons.

“Iran needs to monitor what enters and exits the strait to ensure that these two weeks [of truce] are not used for arms transfers,” Hosseini noted.

He added that vessels must notify the country’s authorities of their cargo via email. Upon receipt, Iran will send payment details in digital assets.

“Once the email arrives and Iran completes its assessment, vessels are given a few seconds to pay in bitcoin. This ensures that the funds cannot be tracked or seized due to sanctions,” Hosseini emphasized.

The tariff will be $1 per barrel. Empty vessels may pass free of charge. 

For illegal crossing of the territory, Iranian authorities threaten to strike tankers.

The Strait of Hormuz is a key point in the ongoing conflict between the US and Iran. The ability of vessels to pass through it affects global oil prices, and the digital asset market has recently been reacting actively to changes in commodity prices. 

At the time of writing, bitcoin is trading just above $71,000. The asset has gained 5% in a day amid de-escalation in the Middle East.

Analysts at QCP believe that the resumption of shipping through the Strait of Hormuz does not guarantee the lifting of supply restrictions and the reduction of inflationary pressure due to rising oil prices.