A small, little-known island off Iran’s southern coast has emerged as one of the most strategically important points in global trade.

Larak Island, positioned at the eastern entrance of the Strait of Hormuz, has effectively become a controlled maritime checkpoint — or what industry insiders are calling a “toll gate” — through which selected vessels are allowed to pass.

The shift marks a fundamental change in how one of the world’s most critical shipping lanes is operating.

According to the latest data from Lloyd’s List Intelligence on April 2, no vessels have transited the strait via its traditional route since March 15. Instead, traffic has been funnelled through a narrow corridor near Larak Island, overseen by Iran’s Islamic Revolutionary Guard Corps (IRGC).

Since March 13, at least 62 vessel transits have been tracked via this “Larak corridor”, signalling a clear operational shift rather than a temporary disruption.

The system functions as a vetting mechanism, according to energy expert and strategic advisor Felipe Germini, founder and managing director of GerminiEnergy who wrote a recent detailed post on the subject.

Shipowners must submit detailed cargo manifests, ownership structures, and destination information in advance. Approved vessels are then guided through Iranian territorial waters, where passage is confirmed by IRGC personnel on-site.

Those that do not comply — or are deemed unsuitable — are denied access.

“The strait is open: selectively,” Germini wrote. “This is not a blockade. This is a toll gate. And the difference matters enormously.”

He explained that the IRGC has effectively built a de facto approval system centred on Larak Island, where vessels are screened before being allowed through a tightly controlled shipping lane.

“The IRGC reviews the submission. If approved, the ship is directed through Iranian territorial waters via the Larak Island corridor, where personnel make visual confirmation before granting passage,” he wrote.

A $2m passage — and a new revenue stream

While not officially formalised, the system is already showing signs of monetisation.

One reported transaction suggests a vessel paid approximately $2m for a single transit through the corridor — a figure that, if standardised, could turn Larak into a significant revenue-generating node.

Germini noted that such pricing could unlock “hundreds of millions of dollars per month” if applied consistently across even a reduced volume of traffic.

At the same time, shipping through Hormuz has collapsed.

Preliminary data from Lloyd’s List Intelligence indicates traffic is down 94 per cent year-on-year in March, with just 211 verified cargo vessel transits recorded since 1 March 2026.

Two-tier market emerges

The implications are already rippling across global energy and shipping markets.

Data shows that 72 per cent of vessels transiting Hormuz since March 1 have some form of Iranian nexus — whether through ownership, flag, sanctions exposure, or operational links, according to Lloyd’s List.

This is creating what Germini described as a structural divide in the market.

“A Chinese refiner buying Iranian crude through the Larak corridor pays nothing in war risk insurance — the IRGC guarantees safe passage,” he wrote. “A European refiner trying to source Saudi crude through a contested strait pays significantly higher costs and may not get insured at all.”

War risk premiums have surged by 200–300 per cent, with some insurers withdrawing coverage for the region entirely.

The effective cost of moving oil through Hormuz has increased by an estimated $4 to $6 per barrel — adding billions of dollars in additional friction to global markets each month.
The emergence of Larak Island as a controlled gateway also signals a more calibrated strategy than a full closure of the Strait of Hormuz.

Rather than halting flows outright, Iran is selectively controlling access — allowing it to maintain pressure on global markets while preserving a degree of continuity in trade.

As Germini put it: “The cost differential is not a rounding error. It is a competitive weapon.”

Latest numbers (March 1 — April 1, 2026) on Strait of Hormuz traffic from Lloyd’s List:

• 211 Strait of Hormuz transits recorded (19.4m dwt)
• 144 eastbound transits; 67 westbound
• Vessel breakdown:
  • 68 bulk carriers
  • 49 crude oil tankers
  • 36 product tankers
  • 25 containerships
  • 22 gas carriers
• Ownership/flag distribution:
  • Iran (24%)
  • Greece (16%)
  • China (10%)
• 72% of all traffic has an Iran nexus (ownership, flag, sanctions, shadow fleet, or Iran-linked port calls)
• 76 dark transits (AIS off); 135 traceable transits (AIS on)

Note: Data covers cargo-carrying vessels of 10,000 dwt (deadweight tonnage) and above. Figures may be revised as more information on dark transits becomes available.

Italy’s competition authority said on Thursday it had fined several companies of the Revolut group more than EUR11.5m euros ($13.25m) for alleged unfair commercial practices.

The European fintech group made misleading statements about its investment services and used aggressive and deceptive practices in the management of its banking services, the regulator said in a statement.

Revolut strongly disagrees with the authority’s findings and will appeal the decision in the Italian courts, a spokesperson said in emailed comments, adding the decision will have no impact on Revolut’s operations or financial position.

“We remain confident that our communications are clear and transparent. Protecting our millions of customers is our absolute priority,” the statement said.

The watchdog said it imposed a EUR5m fine on Revolut Securities Europe UAB and Revolut Group Holdings for breaching consumer protection rules by failing to give its customers “clear and comprehensive information” on additional costs and limitations on commission-free investments.

The competition regulator, which also polices consumer rights, fined the two companies a further EUR5m for “aggressively managing and omitting, or providing unclear information” on conditions and procedures for suspending, limiting, and blocking payment accounts.

Finally, it imposed an extra EUR1.5m fine on the same two companies for failing to clearly explain requirements and times for obtaining an Italian bank account instead of a Lithuanian one.

The fintech company, which is headquartered in London, is operating in the European Union under a Lithuanian licence and is under the supervision of the European and Lithuanian central banks.

The spokesperson said Revolut operated in line with Italy’s rigorous banking rules and that “account reviews are mandatory and necessary to protect customers and safeguard the integrity of the financial system.” The transition to Italian bank accounts was carried out in accordance with rigorous local banking protocols, the spokesperson said.

Gold traded at a premium in India this week for the first time in two months, as softer prices boosted demand for the metal, while premiums in China ticked down slightly as buyers awaited a deeper correction.

Dealers quoted discounts of up to $8 an ounce and premiums of $2 an ounce over official domestic prices this week, inclusive of 6 per cent import and 3 per cent sales levies, compared with discounts of up to $61 last week.

“Falling prices are helping bring back buyers. Retail buying and jewellers’ purchases were stronger this week than last week,” said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.

Read more-Gold heads for biggest monthly drop in more than 17 years

Domestic gold prices were trading around 146,700 rupees per 10 grammes on Thursday, after rising to 151,326 rupees earlier this week and a record high of 180,779 rupees in late January.

Scrap supplies have declined in recent weeks, prompting jewellers to buy from banks, although volatile prices and the rupee are keeping purchases small, said a Mumbai-based bullion dealer with a private bank.

In top consumer China, bullion traded at premiums of $12-$17 an ounce over the global benchmark price this week, slightly down from $14-$18 last week.

“The demand for physical gold is steady as gold swings between $4,400 and $4,700….when the market goes down to about $4,200, we could see some increase in demand,” said Peter Fung, head of dealing at Wing Fung Precious Metals.

International spot gold prices dropped over 4 per cent on Thursday, retreating from a two-week high hit earlier in the session, as the Middle East conflict rages on, fuelling concerns around inflation and a hawkish monetary policy response.

“Gold jewellery sales remained soft in the immediate post-Chinese New Year period, but have begun a moderate recovery, supported by low inventory levels and restocking demand following the price correction,” Metals Focus said in a note.

Investment flows cooled down in the last two months of March after a solid start in the first two months of the year, it added.

In Hong Kong, physical gold traded at par to premiums of $1.80, while in Japan, gold was sold at par with spot prices.

In Singapore, gold was sold at prices ranging from a $0.25 discount to a $1.80 premium per ounce.

Dubai’s Roads and Transport Authority has outlined a series of fee exemptions, discounts, and accessibility-focused initiatives aimed at reducing the daily financial burden on families, as part of its broader partnership with the Ministry of Family UAE under the “Family First” programme.

The measures are designed to make mobility more affordable and inclusive, particularly for senior Emiratis, students, and People of Determination, while reinforcing Dubai’s wider push to integrate family-focused policies into urban planning and transport systems.

As part of the initiative, RTA confirmed that senior Emiratis will be exempt from parking fees and will benefit from discounted public transport fares. Students will also receive reduced fares, while People of Determination will be granted exemptions from Salik toll fees, parking charges, public transport fares, as well as vehicle registration and renewal fees. In addition, taxi fares and driver licensing fees for People of Determination have been reduced by 50 per cent.

Mattar Al Tayer said the authority is aligning its policies with national priorities to support families and improve accessibility.

“At RTA, we are committed to aligning our projects and policies with the national directions for the growth of the Emirati family by providing a safe, accessible, and inclusive transport system that caters to the needs of all segments of society. This contributes to reducing the daily burdens on families and enhancing the ease of mobility of their members within an integrated urban environment.”

The cost relief measures form part of a wider strategy to embed family-focused considerations into transport infrastructure, public amenities, and urban spaces. The partnership with the Ministry of Family also aims to integrate behavioural design principles into mobility systems, making them more intuitive and supportive of family needs.

Sana bint Mohammed Suhail said the collaboration extends the reach of the “Family First” programme into sectors that directly impact daily life.

“Our partnership with Dubai’s Roads and Transport Authority represents a practical extension of the ‘Family First’ programme and a qualitative step in expanding its scope to include one of the sectors with the greatest impact on families’ daily lives — transport and urban mobility, thereby reflecting an advanced level of institutional integration that underscores the leadership of government performance in the UAE and reaffirms our commitment to placing the family at the centre of policies and development plans.”

She added that the initiative translates national policy into tangible outcomes within urban systems. “Through this collaboration, we translate the objectives of the National Family Growth Agenda 2031 into tangible design and operational standards within the transport system and urban facilities, thereby firmly positioning the family as a national priority in urban planning and reinforcing the integration of social policies with development projects.”

Beyond financial relief, RTA is also rolling out a broader set of initiatives to support families, including dedicated spaces at transport hubs for home-based businesses, a mobile nursery service for employees, and expanded services for women and children across the public transport network.

The “Family First” programme, launched during the World Government Summit 2026, is being implemented in phases, with Dubai as the starting point before expansion across the UAE.

Read: RTA expands vehicle licensing network across Dubai: Key areas revealed

Saudi Arabia has introduced stringent new penalties for citizens who violate travel regulations, including fines of up to SAR30,000 and travel bans of as long as two years for visiting countries deemed off-limits by authorities.

Under the updated executive regulations of the Travel Documents Law, repeat offenders could face even harsher consequences. The fine may be doubled, and the travel ban extended to up to five years, signaling a firm stance by authorities on unauthorised travel.

Read more-Revealed: Here’s what travel will look like in 2026

The regulations were approved by Minister of Interior Prince Abdulaziz bin Saud bin Naif, according to a Saudi Gazette report. Officials noted that the list of prohibited destinations will be determined by the Ministry of Interior following the completion of necessary procedures.

Stricter penalties for high-risk destinations

Authorities emphasised that penalties may be further increased under specific circumstances. Travel to dangerous locations, conflict zones, or countries under emergency-related restrictions could result in multiplied fines and longer bans.

However, the regulations also provide for reduced penalties in certain cases. These include situations where the traveller has first-degree family ties to the destination country, is transiting through the country on an indirect flight for no more than 48 hours, or is aged 60 or above.

The new rules also address violations related to travel documentation. Individuals found providing false information in declarations for obtaining travel documents may face fines of up to SAR5,000. Repeat violations will lead to doubled fines and a travel ban of up to six months.

More serious offenses involving tampering with travel documents will be handled through legal channels. Anyone who alters, deletes, or adds information to a travel document without authorisation, or deliberately damages or falsifies it, will be referred to the Public Prosecution after administrative procedures are completed.

Severe consequences for document abuse

Authorities have introduced strict measures against the misuse of travel documents. Individuals who allow others to use their travel documents unlawfully, or who sell or pawn them, could face fines of up to SAR100,000 and travel bans of up to five years. These penalties will also double for repeat offenses.

Similarly, those who attempt to use or assist in the use of another person’s travel document unlawfully will face identical penalties, underscoring the seriousness of identity and document fraud.

In addition, individuals who enter or exit the kingdom through unauthorized routes without a valid excuse may also face fines of up to SAR100,000 and travel bans of up to five years, with stricter penalties for repeat violations.

Clear procedures for passports and travel compliance

The executive regulations also set out detailed procedures for issuing passports and handling cases of loss or damage. Citizens are required to safeguard their travel documents and follow official reporting channels if a passport is lost.

Authorities reiterated that entry into and exit from Saudi Arabia must occur strictly through designated ports. In exceptional circumstances where this is not possible, individuals must immediately notify the nearest security authority.

The rules also clarify that within the kingdom, citizens should not carry their passports regularly, as the national identity card serves as the primary form of identification domestically.

Saudi citizens residing abroad on a permanent or semi-permanent basis are required to register their passports with Saudi embassies or consulates in their host countries. This measure is intended to ensure better coordination and support for citizens overseas.

The regulations further prohibit the use of passports that have been reported lost electronically. If such a passport is recovered, it must be submitted to the Passport Department for cancellation, with the process completed through official electronic systems.

Support for citizens abroad

Saudi embassies and consulates have also been tasked with assisting citizens who lose or damage their passports while abroad. In such cases, temporary travel documents will be issued to enable their return to the kingdom.

Exceptions apply to individuals who can prove permanent or semi-permanent residency abroad. In cases where a new passport is issued overseas, embassies must notify the Directorate of Passports and coordinate with the Ministry of Foreign Affairs after approval of the necessary administrative decisions.