Stablecoins Enter Oil Trade as Iran Bypasses Dollar System

• Iran is charging roughly $1 per barrel for Hormuz transit, about $2 million per VLCC.
• Payments are being made in yuan, rials, or stablecoins, bypassing the US dollar and SWIFT.
• Traffic has dropped, risks have surged, and energy and insurance costs are rising.

A new payment flow is forming in the global oil trade. Iran is now charging ships passing through the Strait of Hormuz using Chinese yuan and stablecoins, cutting out the US dollar.

As per reports, the ships have already started paying to pass. Iran has moved to control the Strait of Hormuz, a route that handles roughly 20% of global oil supply. The country is charging around $1 per barrel for transit.

Dollar Bypass Becomes Operational

A standard Very Large Crude Carrier (VLCC) carries about 2 million barrels, putting the toll near $2 million per ship.

To pass, ship operators must submit full vessel data to an intermediary linked to Iran’s Islamic Revolutionary Guard Corps (IRGC). This includes ownership, cargo, crew, and tracking data. Clearance is only given after background checks.

Once approved, ships receive a passage code and are often escorted through Iranian-controlled lanes.

Payments are not allowed in US dollars. Iran is demanding settlement in yuan, Iranian rials, or stablecoins. Sanctions have cut Iran off from the global dollar system and SWIFT. This forces alternative rails.

Stablecoins now enter a real-world use case with active large-scale commodity trade. These are crypto assets pegged to fiat value, allowing fast settlement without banks.

Selective Access Reshapes Trade Routes

Iran is not treating all ships equally. Countries are ranked from Grade 1 to Grade 5. Friendly nations like China get better terms and easier access. Ships linked to the US or Israel face delays or denial.

In some cases, vessels must change their flag state to gain passage. There have been offers for ships to temporarily register under countries like Pakistan to qualify. This turns Hormuz into a controlled corridor. Access depends on political alignment.

Meanwhile, the traffic through the strait has fallen sharply from normal levels. Some movement has resumed but remains far below pre-conflict volumes.

Risk has increased, insurance costs have surged, and some vessels have been hit by drones and missiles while waiting or transiting. On the other hand, energy prices are rising, supply chains are tightening, and shipping firms face higher operating costs and legal risk.

However, it is also important to note that paying fees to entities linked to the IRGC creates legal exposure. The group is under sanctions from the US, EU, and UK. Transactions could violate anti-money laundering laws.

Related: Iran Imposes Crypto and Yuan Tolls on Strait of Hormuz Shipping