“HORMUZ STRAIT LOCKDOWN: IRAN’S GRIP ON GLOBAL OIL TIGHTENS”
GREATRIBUNETVNEWS–THE Strait of Hormuz is at a near standstill, with ship traffic at well below 10% of normal volumes despite a US-Iran ceasefire. Iran is asserting control, warning ships to keep to its territorial waters.
Key Issues:
– _”Iran must open the strait without conditions.”_ – ADNOC CEO
– Traffic Disruption: Only 7 ships passed through the strait in 24 hours, vs. 140 normally.
– Oil Prices: Physical oil grades hit fresh all-time highs due to 20% global supply cut.
– Naval Mines Risk: IRGC advises ships to sail through Iranian waters around Larak Island.
– Backlog: Hundreds of tankers stuck; clearing backlog may take longer than 2 weeks
Vessels are to enter the strait north of Larak Island and exit just south of it until further notice in coordination with the IRGC’s navy, Tasnim quoted the IRGC as saying.Risks persist for ships not authorised by Iran, particularly those affiliated with Israel and the U.S., British maritime security company Ambrey said in an advisory.”Even shipping with apparent approval has been turned back in recent weeks mid-transit,” it said.
■ TOLLS AND CRYPTO
Media reports have suggested that Iran might want to charge a toll for ships passing through, some pinning the figure at $2 million, and ship-tracking data has shown some vessels are already taking the unusual route around Larak Island.
Western leaders have pushed back on the idea of paying any such fees.
Indian-flagged Pine Gas LPG tanker recently took the unusual route around the Larak Island to exit the Gulf.
The company did not pay Iran a toll to transit and the vessel was not boarded by IRGC, its chief officer, Sohan Lal, told Reuters.
The UN’s shipping agency, the International Maritime Organization (IMO), said there was no international agreement where tolls can be introduced for transiting international straits.
“Any such toll will set a dangerous precedent,” an IMO spokesperson said on Thursday.
Iran will demand toll payments in cryptocurrency to retain control over Hormuz during the two-week ceasefire, the Financial Times newspaper quoted Hamid Hosseini, a spokesperson for Iran’s Oil, Gas and Petrochemical Products Exporters’ Union, to have said on Wednesday.
Mitsui O.S.K. Lines (9104.T), opens new tab, one of Japan’s big three shipping firms, has managed to bring three tankers out of the strait in recent days.
The company is awaiting guidance from the Japanese government on how to proceed under the two-week ceasefire, its president and CEO, Jotaro Tamura, told Reuters on Thursday.India has granted waivers to allow two Iranian cargoes aboard an older tanker and another under sanctions to enter its ports, two officials familiar said on Thursday.
They included one loaded with liquefied petroleum gas (LPG) used for cooking. India is facing its worst gas crisis in decades and has introduced rationing to ensure households are supplied.
The United States issued a surprise waiver on Iranian oil exports last month which is due to end on April 19 in a bid to support global supply and ease fuel price rises.
Since Feb 28, at least 23 Iranian-flagged tankers have reached Asia, keeping up their pace from pre-war levels, according to U.S. advocacy group United Against Nuclear Iran (UANI), which monitors Iran-related traffic.
The crisis has pushed global oil prices to record highs, affecting energy markets worldwide.
WITH ADDITIONAL REPORT FROM ==Reuters==
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