Iran offers China reduced Strait of Hormuz transit fees, accepts Bitcoin and USDT for tolls

Iran just turned one of the world’s most important shipping chokepoints into a geopolitical loyalty program. And it takes Bitcoin.

Iran’s ambassador to China, Abdolreza Rahmani Fazli, announced during the World Peace Forum in Beijing on July 4 that China and other allied nations will receive reduced transit fees for navigating the Strait of Hormuz. The waterway has become what Tehran now classifies as a matter of “national security” following a four-month conflict involving the United States and Israel.

The toll booth at the center of global trade

Tehran is reportedly considering imposing tolls on vessels traversing the strait, with fees rumored to reach up to $2 million per ship. Iran has signaled it will accept payments in Bitcoin and USDT, the Tether stablecoin. The fee reductions for China and allied nations function as a tiered pricing system. Iran plans to collaborate with Oman to ensure smooth transit operations under the new arrangement.

Why crypto fits Iran’s playbook

Iran has operated under heavy US and international sanctions for years, which severely restrict its access to the traditional banking system. Bitcoin and USDT allow value transfer without relying on intermediary banks that might freeze or flag transactions. Stablecoins like USDT offer dollar-equivalent value without actually touching the US banking system.

Earlier in 2026, Tehran allowed selective transit of Chinese vessels through the strait during a period of broader blockades, illustrating the deepening bilateral relationship between the two countries. Iran has also been mining Bitcoin domestically for years, using its subsidized energy to power mining operations.

What this means for crypto investors

No significant price movements in either Bitcoin or USDT were reported in direct response to the announcement.

The risk side is equally important. US regulators and Treasury officials have been cracking down on sanctions evasion through crypto. Tether, which has previously cooperated with law enforcement to freeze wallets, could find itself in an uncomfortable position between compliance and its largest growth markets.

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