Iran launches Bitcoin insurance for Hormuz Strait shipping

Investing.com -- Iran has launched a Bitcoin-backed insurance service for shipping companies transiting the Strait of Hormuz, the semi-official Fars news agency reported Monday, citing documents from Iran's Ministry of Economy and Financial Affairs.

The service, named Hormuz Safe, could generate more than $10 billion in revenue for Iran, according to Fars, though no timeframe or operational breakdown was provided.

Iran has blocked the Strait of Hormuz, a key route for global energy supplies, since US and Israeli airstrikes began on Feb. 28. The government and Islamic Revolutionary Guard Corps have been working to formalize control over the waterway through tolls and fees.

According to a screenshot of the Hormuz Safe website shared by Fars, the service targets Iranian shipping companies and cargo owners. Iran's use of cryptocurrencies like Bitcoin and Tether has increased since President Donald Trump targeted its economy and energy exports during his first administration.

Cryptographically verifiable insurance policies will cover shipments passing through the Persian Gulf, the Strait of Hormuz and surrounding waterways, with payments settled in Bitcoin, Fars reported, citing the website hormuzsafe.ir. Coverage begins upon confirmation, with signed receipts provided to owners.

The US and Iran have maintained a "shaky" ceasefire since early April.

Trump threatened Iran on Sunday, warning Tehran to "better get moving, FAST, or there won't be anything left of them" in a Truth Social post. Both sides have rejected each other's demands and cannot agree on restarting peace talks.

More than 1,500 commercial vessels were trapped in the Persian Gulf as of early May, according to the US military. Regional oil producers have been forced to cut output as storage capacity runs out.

Iran and the IRGC have allowed some vessels to transit via a designated route near Iran's coast, sometimes after requesting payments up to $2 million. The US has blockaded Iranian ports in response.

The connection between Hormuz Safe and the IRGC or government toll plans remains unclear. Fars is affiliated with the Guards.

Ebrahim Azizi, head of Iran's parliamentary commission for national security, said a professional mechanism to manage strait traffic along a designated route would be unveiled soon. Only commercial vessels and parties cooperating with Iran would benefit, Azizi said in a statement on X. Fees will be collected for specialized services, and parties involved in the US-Israeli war on Iran would be banned from the route.

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