Iran has proposed managing the Strait of Hormuz through an insurance-based model, state media reported on Sunday.
Iran’s ‘Insurance Plan’ For Vessels
The model would allow Iran to retain control over the Strait, while also being acceptable to other nations during peacetime, Fars News Agency reported, citing a document obtained from the Ministry of Economy.
Under the proposed plan, the critical waterway would be managed through an insurance framework, allowing for the issuance of “marine insurance policies” and “certificates of financial responsibility.”
The plan would start with insurance covering risks such as inspection, detention, and confiscation, excluding damages from weapon strikes.
Officials involved in the project estimate that the platform could eventually generate more than $10 billion in revenue for Iran, according to the report.
Bitcoin As Payment Medium?
The platform, called “Hormuz Safe,” uses cryptographic verification to secure cargo transit, with payments settled in Bitcoin (BTC), according to its website.
“Hormuz Safe provides Iranian shipping companies and cargo owners with fast, verifiable digital insurance — paid via Bitcoin and settled at the speed of the blockchain,” the excerpt reads.
The Strait Of Hormuz Chokepoint
The Strait of Hormuz, a critical waterway for global oil shipments, has been a focal point of global concern. The closure has led to higher oil prices and a wave of global inflation.
The conflict began in late February, when U.S. and Israeli strikes killed Iran’s Supreme Leader Ayatollah Ali Khamenei. Iran announced a blockade of the Strait, while maintaining that commercial traffic can still pass, excluding ships associated with its “enemies.”
Treasury Secretary Scott Bessent stated that China would work behind the scenes to help reopen the Strait of Hormuz. China, being the world’s largest oil importer and the main buyer of sanctioned Iranian crude, has a vested interest in the reopening of the Strait.
That said, Polymarket traders priced in a grim possibility of Hormuz traffic returning to normal in the short term, while they see an eventual resolution by year-end.
Photo: Below the Sky on Shutterstock.com
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