Iran has imposed sweeping new controls over the vital Strait of Hormuz, forcing oil tankers into a tightly monitored corridor and, in some cases, charging millions of dollars for passage.

Daily vessel traffic through the world’s most critical energy chokepoint has plunged dramatically-from around 110 ships before February 28 to fewer than 10 per day, The Caspian Post reports via Kazakh media.

Ships are now being rerouted through Iranian territorial waters between Qeshm Island and Larak Island, where the Islamic Revolutionary Guard Corps (IRGC) closely inspects vessels and effectively controls access.

“Whatever we can detect going out of the strait right now is going through this narrow channel… where the IRGC essentially verifies the ship’s information and acts almost like a toll booth,” said maritime risk analyst Tomer Raanan.

Iranian officials have openly defended the move. Lawmaker Mohammadreza Rezaei Kouchi said ships benefiting from Iranian-provided security should naturally pay fees, with some tankers already reportedly paying in Chinese yuan. Draft legislation is now in the works to formalize the system.

Tehran’s ambitions appear to go further. Officials have called for international recognition of Iran’s sovereignty over the Strait as part of any broader conflict settlement-raising alarm among global powers.

The impact on energy markets has been immediate. Benchmark oil prices have surged, with Brent crude climbing above $100 per barrel amid fears of supply disruptions. Boris Pistorius warned the situation could have devastating economic consequences, calling the broader conflict “a catastrophe for the world’s economies.”

Despite continued pressure from the U.S. and Israel, Iran’s expanding control over the Strait of Hormuz is fueling fears of prolonged disruption-threatening global energy flows and increasing the risk of further escalation.