Iran is reportedly planning to charge oil tankers a fee of $1 per barrel to pass through the Strait of Hormuz, with payments required in cryptocurrency, according to the Financial Times. The fee would depend on how much oil each ship is carrying, which is usually between 500,000 and two million barrels. Shipowners would first need to email Iran with details about their cargo, after which Iran would set the final fee for safe passage. Following this news, cryptocurrency prices quickly moved higher. Bitcoin rose by about 5% to above $71,700, after briefly going over $72,700 earlier in the day.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Meanwhile, Ethereum (ETH-USD) gained around 8%, and Solana (SOL-USD) increased by about 7%, although both pulled back slightly from earlier highs. Interestingly, Iran did not specify which cryptocurrency should be used for these payments, which creates some uncertainty around how this system would actually work. In addition, ships without cargo would be allowed through for free, but any vessel that tries to pass without permission could face serious consequences.
More specifically, Iran has reportedly warned ships over the radio that any unauthorized crossing could lead to them being destroyed, and it has already attacked vessels in the area in recent weeks. Although a ceasefire has been discussed, shipping activity through the Strait is still very limited. Experts say that there has not been a meaningful return of traffic yet, as companies remain cautious due to safety and insurance risks.
Is Bitcoin a Good Buy?
Using TipRanks’ technical analysis tool, the indicators seem to point to a positive outlook for Bitcoin. Indeed, the summary section pictured below shows that 10 indicators are Bullish, compared to five Neutral and seven Bearish indicators.
