Energy, Oil & Gas

Near-blockade of Strait of Hormuz by Iran continues despite Trump warning

DUBAI
Near-blockade of Strait of Hormuz by Iran continues despite Trump warning
New IRGC suggested route for oil tankers

Iran continued its near-total blockade of the Strait of Hormuz despite US President Donald trump saying Tehran must allow oil to go through the waterway.

Ship traffic through the Strait of Hormuz stood at well below 10% of normal volumes on Thursday ​despite a US-Iran ceasefire as Tehran asserted its control by warning ships to keep to its territorial waters while doing so, said a Reuters report.

Hundreds of tankers ‌and other ships have been stuck inside the Gulf since the Iran war began on Feb 28, cutting global oil supply by 20% in the world's biggest-ever supply disruption.

Washington accused Tehran of breaching promises on the Strait of Hormuz and Israel struck Lebanon with attacks that Iran has ‌claimed violate the truce.

Trump said in a social media post late Thursday that Iran was doing a "very poor job" of allowing oil to go through ​the strait. "That is not the agreement we have!"

In a separate post, he said oil would start flowing again, without saying what actions the US might take.

Iran must open the strait without conditions, the CEO of UAE state oil giant ADNOC said on Thursday.

Just seven ships had passed through ​the strait in the past 24 hours versus about 140 normally, ship-tracking data showed. They included one oil products tanker and six dry bulk carriers, data ​from Kpler, Lloyd’s List Intelligence and Signal Ocean showed.

Iran's Islamic Revolutionary Guard Corps (IRGC) have told vessels to sail through Iranian waters around Larak ​Island to avoid the risk of naval mines in the usual lanes through the strait, Iran's semi-official Tasnim news agency reported on Thursday.

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.