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Iran Conflict 2026
23JUL

France and Japan pay Iran's toll

2 min read
19:27UTC

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

ConflictAssessed
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
First Reported In

Update #58 · First US aircraft fall over Iran

Euronews / Bloomberg· 4 Apr 2026
Read original →
Different Perspectives
Wang Yi
Wang Yi
China's foreign minister and Djibouti's issued a joint communique on 21 October saying the war should not reach the Horn of Africa and stressing free navigation through Bab al-Mandeb. The text names neither Iran nor the Houthis, and Djibouti hosts China's only overseas military base, opposite the Yemeni coast.
Ministry of External Affairs
Ministry of External Affairs
India's foreign ministry called the attacks on Saudi civilian and energy sites "unacceptable" on 22 October and said they must stop at once. An Indian died at Dammam, Indians were injured there and at Shaybah, and about 4,000 Umrah pilgrims remain stranded by one MP's count.
Iraq
Iraq
Iraq closed the al-Sheeb crossing with Iran to travellers and trucks from 21 October and said other crossings would close gradually. Unlike September's closure, which ended on a staged timetable, this one has none, and Iran's interior ministry said it received no notice.
Abdel Fattah el-Sisi
Abdel Fattah el-Sisi
Egypt's president said on 21 October that Cairo's support would "defend Saudi territory, and does not include an attack on Yemen". Araghchi warned that Egyptian involvement would further complicate the situation, and Cairo's limit matches the one Ankara set on 8 October against attacking another state's soil.
UK Ministry of Defence
UK Ministry of Defence
The MoD said on 20 October that RAF Typhoons over Saudi Arabia will not strike the Houthis, but extended tanker support to Saudi operations including against Houthi targets in Yemen. The tanker line sets no limit on strikes, so British aircraft may now refuel Saudi jets on bombing runs.
Turkey
Turkey
Ankara sent the Mecca Joint Defence Agreement to parliament around 20 October, and its published text treats an attack on one party as an attack on all. Article 16 brings it into force only on the last ratification, so the 5 October invocation in Riyadh could not yet bind Turkey.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.