Iran has announced a new framework that would place the Strait of Hormuz under an insurance-and-payment-based transit system, alongside stricter pre-clearance requirements for all vessels crossing the chokepoint.
Under the proposal, presented by Iran’s Ministry of Economy, a system called “Hormuz Safe” would issue mandatory marine insurance policies and certificates of financial responsibility for ships entering the strait. The platform is reportedly designed to use cryptographic verification and settle payments in Bitcoin, positioning it as a state-managed but blockchain-based maritime insurance mechanism.
According to Iranian state media, the system would initially cover risks such as inspection, detention, and confiscation of cargo, but would not extend to damage caused by armed conflict. Officials cited by Fars News Agency estimate that the scheme could generate more than $10 billion in annual revenue for Iran if fully implemented.
In parallel with the insurance framework, Iran’s Islamic Revolutionary Guard Corps Navy has introduced a requirement for all vessels to submit a Vessel Information Declaration before transiting the Strait of Hormuz. The declaration includes details on cargo, ownership, origin and destination, and routing plans. Vessels that fail to comply risk being denied passage.
The requirement would effectively place commercial shipping under a pre-screening regime administered by a newly established Iranian maritime authority. Operators carrying crude oil and other sensitive cargoes from Gulf states would be required to disclose commercially sensitive information prior to entry.
Authorities in Tehran say the combined insurance and declaration system is intended to formalise and structure traffic through the strait, while also generating state revenue and increasing regulatory control over one of the world’s most important energy corridors.
The move comes amid ongoing disputes over maritime governance in the Strait of Hormuz, a critical route for global oil shipments. While international law under the UN Convention on the Law of the Sea guarantees transit passage through international straits, Iran is not a signatory to UNCLOS and has repeatedly advanced alternative regulatory frameworks. Western governments have described such measures as incompatible with freedom of navigation principles.
