Strait of Hormuz Reopened as Iran Proposes Crypto-Fee System

The Strait of Hormuz, a vital oil chokepoint, has been reopened after months of disruptions caused by the US-Iran conflict. The waterway handles around 20% of the world's seaborne oil trade, with approximately 20 million barrels per day flowing through it before the crisis.

Iraq is urging Iran to lift maritime blockades and resume normal transit procedures. The diplomatic push comes after a tentative deal was reached in June, allowing tanker movements to resume under certain conditions.

The US lifted its naval blockade on Iranian ports in mid-April, but tensions remained high until the recent agreement. Iran has proposed charging around $1 per barrel for tanker passage through the Strait, with fees paid in Bitcoin or stablecoins.

Iraq is exploring alternative routes to reduce dependence on the Strait, including routing exports through its Umm Qasr port and the Kirkuk-Ceyhan pipeline.