Commercial traffic through the Strait of Hormuz ground to a virtual halt on Monday after a brief and confused reopening over the weekend ended with the first US seizure of an Iranian vessel – underscoring how difficult it will be to resume operations in the vital strait.
Transit through the waterway has dwindled to a trickle during the seven weeks of the Gulf War as Iran tightens controls in retaliation for US and Israeli attacks. On Friday, that paralysis appeared to be over when Iran and the US announced a reopening, sending oil prices plunging and vessels rushing to cross — only for the situation to unravel quickly.
On Sunday, the U.S. Navy seized an Iranian cargo ship in the waters off Iran’s Jask port in the Gulf of Oman as it headed toward Hormuz — the first such move during the U.S. blockade — raising the stakes for shipowners operating across the region and expanding the area considered risky for transit. Benchmark crude jumped in response as a historic supply crunch begins to look even longer.
“Continued volatility will discourage most, if not all, shipowners from adopting a cautious wait-and-see approach,” said Ivan Mathews, head of AC analysis at Vortexa Ltd.
One oil products tanker in motion, the Nova Crest, currently south of Larak Island and heading from Hormuz to the Gulf of Oman, is a vessel that has been sanctioned by the United Kingdom, the European Union and Switzerland for its involvement in the Russian oil trade. It signals its destination as Khor Fakkan in the United Arab Emirates.
In the opposite direction, Axon I, an American liquefied petroleum gas carrier, is making its way into the strait from Fujairah, marking Sharjah in the United Arab Emirates as its destination. Next door is the Starway medium-range oil tanker, signaling Hamriyah in the United Arab Emirates as its next port of call.
Liquefied natural gas tankers also approached the strait after the apparent opening, but also ended up making U-turns or idling while they wait for clarity.
A fragile truce between the US and Iran is set to expire at the end of Tuesday. It is unclear whether the truce will be extended or if talks between US and Iranian officials in Islamabad will continue later this week.
With the help of Yongchang Chin.
This article was generated from an automated news agency source without text modification.
