MARKET STRUCTURE · MIDDLE EAST
Tanker owners, oil majors and traders suspend shipping via Strait of Hormuz after Iran navigation closure claim
Change
On Saturday, several tanker owners, oil majors and trading houses suspended crude oil, fuel and liquefied natural gas shipments via the Strait of Hormuz after Tehran said it had closed navigation, trading sources said.
Why Now
Several tanker owners, oil majors, and trading houses paused shipments of crude oil, fuel, and LNG through the Strait of Hormuz, with one trading executive saying ships would “stay put for several days.” Satellite images from tanker trackers showed vessels backed up near major ports such as Fujairah (UAE) and not moving through Hormuz. An official with the EU naval mission Aspides said multiple vessels received VHF transmissions from Iran’s Revolutionary Guards that “no ship is allowed to pass the Strait of Hormuz.” The British Navy stated Iran’s orders were not legally binding and advised vessels to transit with caution. A shipbroker note said vessel traffic had not completely stopped, but disruptions were building rapidly.
Impact
- • Some crude, fuel, and LNG shipments are paused rather than transiting the Strait of Hormuz for several days, per a major trading executive.
- • Vessels are reported backed up near ports (including Fujairah) and not moving through the strait, per satellite images cited.
- • Ship operators received communications stating passage is not allowed, according to the EU naval mission Aspides official.
- • Official guidance diverges: the British Navy said Iran’s orders were not legally binding and advised caution in transit.
Who Recalculates
- • Tanker owners and commercial ship operators
- • Oil and gas majors
- • Commodity trading houses
- • Naval/security maritime mission operators
Source
Topics
World & Politics Conflicts Business & Markets Supply Chain & Logistics Energy & Power Oil & Gas