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France and Japan pay Iran's toll

2 min read
10:53UTC

Two G7 nations paid Iran in yuan to transit the Strait of Hormuz, breaking the collective coalition posture Washington built.

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EconomicAssessed
Key takeaway

The US-led coalition is fracturing as allies pay Iran for passage in Chinese currency.

CMA CGM Kribi, a Malta-flagged container ship owned by France's CMA CGM (the world's third-largest container line), became the first Western European vessel to transit the Strait of Hormuz since 28 February. It paid Iran's toll in yuan. Before entering Iranian territorial waters, the ship changed its AIS designation to "Owner France", signalling nationality for the IRGC's sorting mechanism. 1

Hours later, Mitsui OSK Lines' LNG carrier Sohar LNG crossed in ballast, the first Japanese-affiliated vessel to transit. Three Omani ships also passed through . The toll system charges $1 per barrel for oil tankers or roughly $2 million flat for container ships, payable in yuan or stablecoins.

France and Japan are nominal US allies. Both coordinated with Iranian maritime authorities. Both implicitly accepted Tehran's sovereignty claim over the strait, the precise claim Trump's 6 April energy deadline threatens force to break. Both paid in yuan, not dollars. The Philippines cut its own bilateral deal two days earlier . The coalition posture Washington has relied on since the blockade began is dissolving into bilateral licensing arrangements administered by Tehran.

Deep Analysis

In plain English

France and Japan are close US allies. On 4 April, their shipping companies paid Iran a fee in Chinese currency to sail through the Strait of Hormuz. This matters for two reasons. First, they implicitly accepted Iran's right to charge for use of an international waterway. Second, they paid in yuan, not dollars, chipping away at US financial influence. The Philippines cut a similar deal two days earlier. The alliance the US built around Hormuz is dissolving one bilateral arrangement at a time.

Deep Analysis
Root Causes

France's CMA CGM faces existential commercial pressure: the world's third-largest container line cannot absorb indefinite Hormuz closure without route restructuring at scale.

Japan's LNG dependency on Gulf supply creates energy-security vulnerability that outweighs diplomatic solidarity costs. Both governments calculated that collective posture imposed costs their economies could not sustain, while defection imposed only reputational costs the US would absorb rather than escalate over.

What could happen next?
  • Precedent

    Yuan payment for Hormuz passage creates a non-dollar settlement precedent for strategic waterway access that will outlast this conflict.

    Long term · High
  • Consequence

    Each bilateral deal reduces the political viability of US military action to reopen Hormuz, as enforcement would require overriding arrangements US allies have themselves accepted.

    Short term · High
  • Risk

    General License U expiry on 19 April could force a confrontation with France and Japan if Treasury declines to renew, criminalising transactions both nations have already completed.

    Medium term · Medium
Sources:Euronews / Bloomberg·Euronews / Bloomberg
Mentions:Chatham House →Philippines →Strait of Hormuz →Iran →Lloyd's List →Atlantic Council →Tehran →Oman →Prima →Sohar →Japan →G7 →France →Malta →CMA CGM →IRGC Navy →Mitsui O.S.K. Lines →
First Reported In

Update #58 · First US aircraft fall over Iran

Euronews / Bloomberg· 4 Apr 2026
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Causes and effects
Caused by
Philippines Cuts Bilateral Hormuz Deal, Bypassing US Posture
The Philippines bilateral Hormuz deal two days earlier established the precedent of US allies bypassing collective posture through individual deals with Tehran.
Occurred 2 Apr 2026
Read story →
Omani Vessels Bypass IRGC Corridor, Disable Trackers
Oman's AIS-dark bypass of the IRGC corridor the same day as the Philippines deal created further coalition fracture that France and Japan extended to yuan payments.
Occurred 2 Apr 2026
Read story →
This Event
France and Japan pay Iran's toll
G7 allies accepting Tehran's sovereignty claim and paying in yuan is the conflict's most significant de-dollarisation event.
Led to
Iran's Hormuz Toll Matures Into Permanent Institution
French and Japanese vessels paying Hormuz tolls in yuan (ID:1929) established the pattern that the toll system has now institutionalised.
Occurred 6 Apr 2026
Read story →
Tehran demands ratification, not a deal
French and Japanese vessels paying the Hormuz toll in yuan (ID:1929) gave Iran operational proof that the legal regime functions without US consent.
Occurred 7 Apr 2026
Read story →
Different Perspectives
Cross-border power traders
Cross-border power traders
The France-Germany day-ahead spread flipped from a EUR 17.20 German premium on 1 August to a EUR 4.15 French premium on 3 August, the same day French curtailment peaked. They cannot yet attribute the flip to curtailment alone, since a like-for-like overnight comparison shows French nuclear output rising while wind fell and demand returned on the weekday step.
EDF
EDF
River-cooling limits took 7.6 GW, 12 per cent of its fleet, offline on 3 August, the highest curtailment since the heatwave began, with an easing forecast to 4.3 GW on 4 August and 3 GW after. It manages the cut as a recurring seasonal constraint, expecting it to lift with river temperature, not repair.
Gasunie
Gasunie
TTF, the Dutch hub it operates, drifted to roughly EUR 55 to 58 per MWh across the window, staying inside its recent range through both the German spark reversal and the French curtailment. It reads a flat hub price as evidence that neither event this window carried enough weight to move the fuel leg on its own.
German gas-fired generators
German gas-fired generators
Record German solar of 18,761 MW on 2 August pushed the clean spark spread to minus 18.48 EUR/MWh, a loss-making day, before it returned to plus 16.20 on 3 August. They now price dispatch against post-solar residual load rather than wind alone, since the sign flipped inside 48 hours on unchanged fuel and carbon costs.
European Commission (DG Energy)
European Commission (DG Energy)
Its implementing-measures register logged transposition notices from only Portugal and Slovakia against Wednesday's Article 94 deadline for Directive (EU) 2024/1788, with 25 states silent. It expects the register to fill only gradually, since filing routinely lags legislating and any infringement track against non-notifying states runs on a slower clock than the deadline itself.
Spain's LNG terminal operators
Spain's LNG terminal operators
Spain's 9,145 GWh terminal inventory is the largest single stock in the EU LNG network, an option value that can reroute cargoes wherever the winter strip pays best rather than a cavern gas obligation tied to a fixed date. That flexibility matters more as Germany's cavern shortfall pushes more of the winter security question onto import infrastructure.