Geopolitical chokehold: China’s digital oil-backed tokens and price-pegged tolls expose systemic fragility in Strait of Hormuz governance amid global energy insecurity

Indigenous and local maritime traditions of the Gulf, including Bedouin and Omani seafaring practices, emphasize collective stewardship of waterways and resistance to external toll imposition, as seen in historical agreements like the 1921 Bahrain-Persia maritime accord. These traditions prioritize ecological balance and community-based governance, contrasting with the extractive and financialized solutions proposed by external actors. The erasure of these perspectives in mainstream discourse reflects a broader pattern of marginalizing indigenous knowledge in favor of technocratic or imperial solutions.

The Strait of Hormuz has been a geopolitical flashpoint since antiquity, with Persian, Arab, and European powers contesting control over its trade routes, from the Achaemenid Empire to the Portuguese occupation in the 16th century. Post-colonial arrangements, such as the 1982 UN Convention on the Law of the Sea, failed to address the Strait’s unique vulnerabilities, leaving it susceptible to modern geopolitical rivalries. The 1956 Suez Crisis and the 1980s 'Tanker War' during the Iran-Iraq conflict demonstrate how chokepoints become battlegrounds when global energy systems are militarized.

In China, the proposal to use digital tokens for toll settlements reflects a broader strategy to internationalize the yuan and challenge the dollar’s dominance in global trade, echoing historical tribute systems where resource flows were tied to imperial control. Meanwhile, Gulf states like Oman have long used traditional *sukuk* (Islamic bonds) to finance infrastructure, suggesting alternative models for regional cooperation. African and Latin American scholars draw parallels to how external financial innovations have historically deepened dependency in resource-rich regions.

Scientific studies on maritime choke points highlight the Strait of Hormuz as a critical node in global energy security, with disruptions causing price spikes and supply chain shocks, as seen during the 2019 tanker attacks. Research on digital currencies suggests that oil-pegged tokens could introduce volatility and financial instability, particularly in regions with weak regulatory frameworks. Ecological studies warn that increased tanker traffic exacerbates marine pollution and coral reef degradation, yet these concerns are absent from the toll debate.

The Strait of Hormuz has inspired artistic and spiritual traditions across the Gulf, from Persian miniatures depicting its trade routes to Omani poetry celebrating its winds and tides as divine gifts. In Islamic eschatology, the Strait is sometimes linked to prophecies of resource conflicts, while Sufi traditions emphasize the unity of all life, including the sea, as a reflection of divine harmony. Contemporary artists in the region use installations and murals to critique the militarization of the Strait, framing it as a violation of sacred space.

Future scenarios for the Strait of Hormuz include a bifurcated governance model where China and Gulf states collaborate on digital toll systems, potentially sidelining Western financial institutions but also increasing regional dependency on Chinese technology. Climate models predict that rising temperatures and sea levels will exacerbate tensions over water and energy resources, making the Strait even more critical—and more volatile. Alternative futures could involve regional alliances to phase out oil transit entirely, replacing tolls with renewable energy trade and shared ecological governance.

Marginalized voices include Iranian fishermen and port workers who bear the brunt of sanctions and military tensions, as well as Yemeni and Somali migrants displaced by regional conflicts exacerbated by Strait instability. Indigenous communities in the UAE’s Musandam Peninsula and Iran’s Hormozgan province, who rely on traditional fishing and pearl diving, are rarely consulted in toll debates. Women-led cooperatives in Gulf ports, such as those in Dubai and Doha, have proposed gender-inclusive governance models but are excluded from high-level negotiations.