Iran Imposes Selective Blockade and Transit Fees in Strait of Hormuz

Following military strikes by the United States and Israel on February 28, 2026, Iran has implemented a selective blockade of the Strait of Hormuz. Maritime traffic plummeted by approximately 95%, with daily transits dropping from an average of 138 vessels to just five or six. The Islamic Revolutionary Guard Corps (IRGC) now requires vessels to undergo a vetting and registration process to access a safe corridor near Larak Island, a system dubbed the "Tehran Toll Booth."

Iran has transitioned the waterway into a paid transit system, reportedly charging some tankers up to $2 million for safe passage via cash, cryptocurrency, or barter. While Foreign Minister Abbas Araghchi stated the strait remains "open, but closed to our enemies," the IRGC has actively enforced these protocols. On March 24, the IRGC Navy turned back the container ship Selen, bound for Pakistan, for failing to comply with legal protocols.

The disruption has trapped approximately 20,000 seafarers and hundreds of vessels in the Gulf. Security incidents have surged, with over 20 commercial vessels attacked by drones and mines, resulting in at least eight deaths. In response to surging oil prices, U.S. Treasury Secretary Scott Bessent suggested the U.S. might unsanction 140 million barrels of Iranian oil. Meanwhile, the U.S. has considered military options, including the occupation of Kharg Island, to force the strait's reopening, even as President Donald Trump expressed support for Pakistan's offer to host diplomatic talks.