Since the US-Israeli war with Iran began on February 28, the Strait of Hormuz has been largely closed to shipping traffic. The Iranian blockade of the shipping route is causing global economic disruption and has thus proven to be Tehran’s most important weapon.
Hundreds of ships that were in the Persian Gulf when the war broke out have been stranded since Iran warned that ships “of the United States, the Zionists and their proxies” are a “legitimate target.” Several ships were attacked.
That Iran in a letter to the UN published on Tuesday claimed that the Strait of Hormuz is open “in coordination with the Iranian authorities” to ships from “non-hostile countries”, little has changed for the time being: most shipping companies – and their insurers – do not dare to pass.
But the closure of the shipping route is not absolute. Oil tankers from Iran’s shadow fleet have been able to pass unhindered in recent weeks. Although shipping traffic through the narrow but crucial strait has fallen by about 95 percent since the start of the war, Iran still exports 1.3 to 1.5 million barrels of crude oil daily, about the same as before the war, according to analysts at US bank JPMorgan and research firm Kpler.
The majority of this probably goes to China, which was by far the most important buyer of Iranian oil even before the war. China is said to account for 80 to 90 percent of Iran’s oil exports, which are often pumped at sea to tankers from Malaysia and Indonesia in particular, thus providing an apparently legitimate origin.
‘The Tehran Toll Gate’
Iran also appears to be monetizing its grip on shipping traffic in another way: last week it established a ‘safe’ corridor. According to the specialized in shipping Lloyd’s List more than twenty foreign ships have now used it to pass through the Strait of Hormuz. The corridor is located north of the normal shipping channel, and runs between the islands of Larak and Qeshm through Iranian territorial waters. This makes visual inspections possible by the Iranian Revolutionary Guards.
The passage of some of those ships would have been paid for. Lloyd’s List and Bloomberg report, based on insiders, that the costs per passage would amount to 2 million dollars. It is not clear how, and in what currency, these amounts are paid.
The ‘Tehran toll gate’, as Lloyd’s now calls the route, initially had an improvised character, but seems to be becoming increasingly formalized. Meanwhile, at least India, Pakistan, Iraq, Malaysia and China are said to be talking to Iran about the safe passage of their ships.
Meanwhile, at least India, Pakistan, Iraq, Malaysia and China are said to be talking to Iran about the safe passage of their ships
On Tuesday, Thai Foreign Minister Sihasak Phuangketkeow announced that a Thai tanker crossed the Strait safely after speaking to the Iranian ambassador. According to him, no payment was made for this. The ship is expected to arrive in Thailand in early April, loaded with crude oil.
reached on Wednesday the Chinese LPG tanker Lucky Gas via the Larak corridor to an Omani port, after a Chinese container ship this weekend for a fee sailed along that route. To questions from journalists a spokesperson said from the Chinese Ministry of Foreign Affairs on Wednesday that China is “always in discussions with relevant parties to work on de-escalation”.
Earlier, four Indian LPG tankers had already passed through the Strait. LPG is a commonly used fuel in India, the vast majority of which comes from the Gulf region. Now that the supply is at a standstill, many restaurants have had to close their doors.
This puts pressure on the Indian government. Indian Prime Minister Narendra Modi called Iranian President Masoud Pezeshkian last week to insist on safe passage for Indian ships. On Saturday, the Indian LPG tankers Jag Vasant and Pine Gas, which had been anchored off the coast of the Emirates for weeks, sailed via the Larak corridor to the Gulf of Oman. Indian naval vessels are escorting them to their homeland, where they are expected later this week.
Food scarcity
At least eleven foreign freighters have made the reverse voyage since the outbreak of war, writes the Financial Times. The Greek bulk carrier Giacometti, which flies the Liberian flag, was on Friday the first ship who kept his transponder switched on. It transmits information about a ship and its course. The ship entered the Persian Gulf via Larak on Friday and docked in the Iranian port city of Bandar Imam Khomeini, in the north of the Persian Gulf, on Monday afternoon. ‘Food for Iran’, reported the ship’s transponder, which is said to have had soy from Canada on board.
Iran imports a lot of grain and oilseeds, an analyst tells the British business newspaper. Stalling supplies can cause food shortages, partly because those imports are also used as animal feed.
Officially taken out of service
Transponder data, however, provides an incomplete picture of shipping in the Persian Gulf and the Strait of Hormuz. Disruptions in satellite communications, switched off transmitters and incorrect information make many sailing movements invisible or unreliable. In recent weeks, many ships in the Gulf region did not broadcast their names, but that they had an “all-Chinese owner and crew.”
A notable example is the LNG Jamal and the Baltic Highway, two large cargo ships that were spotted in the region last week, according to transponder data. The two ships were taken out of service and scrapped last year and five years ago respectively. It is unclear who is using their identities now. According to Lloyd’s List Satellite photos showed an unidentified large LNG tanker where the Jamal was said to have been sailing at the time.
Both the Jamal and the Baltic Highway have had a Japanese owner in the past, which may have played a role in the choice of this false identity: the Iranian Foreign Minister is said to have Kyodo said last week that the country is willing to grant passage to Japanese ships.
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