Inside Iran’s ‘Hormuz Safe’ Plan: What Tehran’s Crypto Shipping Insurance Means

Iran has launched a new Bitcoin-based insurance platform for ships transiting through the Strait of Hormuz, marking Tehran’s latest attempt to monetise and exert control over the crucial maritime chokepoint amid ongoing conflict with the United States.

The development comes at a time when the US-Iran standoff is moving ahead, with negotiations between Washington and Tehran still underway over sanctions and maritime security in the Gulf.

While details of the initiative are unclear as of now, citing Fars, Business Insider reported that the Iranian government has estimated that it could generate as much as $10bn in revenue.

The idea was first floated on May 8 by Iranian business tycoon Babak Zanjani, a billionaire accused of embezzling money from Iran’s oil ministry, according to a report by Bloomberg.

What Is Hormuz Safe

Iran’s ‘Hormuz Safe’ is a Bitcoin-backed maritime insurance platform for ships operating through the Strait of Hormuz and nearby Persian Gulf waters. The platform enables shipping companies and cargo owners to pay insurance premiums using Bitcoin and other cryptocurrencies instead of conventional banking channels linked to the SWIFT network.

According to reports, the platform issues cryptographically verifiable insurance certificates and is designed to assist vessels in escaping risks such as detention, inspection or confiscation while operating in the region. As reported by Bankless Times, Iran’s move indicates its intention to bypass Western sanctions, reduce reliance on the US dollar-based financial system and monetise one of the world’s most strategic chokepoints.

Citing the details of the programme, Moneycontrol reported that the service will initially apply to “Iranian shipping companies and cargo owners.” Iranian authorities said, “The shipment will be covered from the moment of confirmation and signed receipt will be given to the owner.”

It remains unclear whether the insurance fee would be charged separately from the controversial toll system Iran has already imposed on ships passing through the Strait of Hormuz. Lately, toll charges incurred on some vessels reportedly touched as high as $2mn per ship.

Why Hormuz Matters

According to the US Energy Information Administration (EIA), a US government energy data agency, the Strait of Hormuz is one of the world’s most important oil transit chokepoints, linking the Persian Gulf with the Arabian Sea and global shipping routes.

The February 2026 International Energy Agency (IEA) report stated that a closure of the Strait of Hormuz could have significant implications for global gas trade, as this would strand LNG exports from Qatar and the UAE, which together represent almost 20% of global LNG exports.

The IEA report further stated that the route is vital for major energy exporters such as Iraq, United Arab Emirates, Qatar, Kuwait, Saudi Arabia and Iran, many of which considerably depend on the Strait of Hormuz to export crude oil and natural gas to Asian markets including India, Japan and China.

“Bangladesh, India and Pakistan imported almost two-thirds of their total LNG supplies via the Strait of Hormuz in 2025, making them particularly vulnerable to potential disruptions to transit flows,” stated the IEA report.

A prolonged disruption in the Strait of Hormuz could intensify competition for spot LNG cargoes and sharply raise gas prices across Asia and Europe, according to a February 2026 report.

The report further warned that a supply shock of this size would require governments and industries to take emergency steps to curb demand, including cutting power generation from gas, imposing energy savings in public buildings and reducing output in energy-intensive sectors.

Why Bitcoin Is Central

According to data published by digital asset manager CoinShares, Bitcoin usage in Iran has surged significantly during the conflict. Analyst Chris Bendiksen said that, “Around 14mn Iranians, roughly one in six, use Bitcoin, with annual transaction volumes growing 11.8% year-on-year and now representing ~2.2% of Iranian GDP,” quoted a Business Insider report.

However, experts remain skeptical about the feasibility of a Bitcoin-backed insurance model, especially in one of the world’s most heavily restricted maritime corridors. According to The Economic Times, shipping activity through the Strait of Hormuz continues to remain severely disrupted, while both Iran and the United States have indicated continued efforts to restrict vessel movement in the region. Experts also warn that sanctions-related compliance risks may discourage major global shipping firms from adopting the system, especially companies operating across international trade routes where links to Iranian financial infrastructure could trigger regulatory scrutiny.