Latest news with #TankerWar
Wall Street Journal
24-06-2025
- Business
- Wall Street Journal
Cool Heads Prevailed in the Strait of Hormuz
Your editorial 'Iran's Strait of Hormuz Gambit' (June 23) rightly notes the waterway's importance. Much of the global economy depends on the 20% of the world's oil supply that travels through the strait. Yet even as the Iranian parliament voted to close the strait, the shipping industry reacted with remarkable sanguinity. Oil prices rose, and maritime insurers' long-standing requirements for voyages through the strait remained in place, but ships sailed through at an almost-normal pace. On June 20, 104 ships transited, and on June 21, 122 ships did so. On June 22, as the U.S. bombed three Iranian nuclear sites, 117 sailed through. In June 2024, an average of 114 ships transited the strait each day. The shipping industry has learned to distinguish between threats and realities, knowing that Iran depends on the passage too. The industry also knows that the Iranian regime remembers the chaos and hardship caused by the 1980s 'Tanker War' between Iran and Iraq. The 451 attacks, most of which were carried out by Iraq, struck 340 ships, killed 116 seafarers and caused enormous disruption to merchant shipping.
Express Tribune
24-06-2025
- Business
- Express Tribune
What impact can closing Strait of Hormuz have on international trade?
Strait of Hormuz also dubbed as energy corridor as millions of barrels of oil move from one part to another from here. PHOTO: REUTERS Iran's threat to close the Strait of Hormuz has raised alarms across global markets given concerns over potential disruptions to one of the world's most critical energy corridors amid escalating conflict with the United States and Israel. The warning follows US airstrikes on Iranian nuclear sites over the weekend. On Sunday, Iran's parliament voted in favour of shutting down the waterway — a move seen as possible retaliation. Any final decision, however, rests with the Supreme National Security Council and Iran's Supreme Leader Ayatollah Ali Khamenei. The Strait of Hormuz, a narrow 31-mile-wide channel between Iran and Oman, is responsible for the transit of nearly 20 million barrels of oil daily — about a fifth of global supply. It also carries a significant portion of global liquefied natural gas (LNG), primarily from Qatar. While no formal closure has occurred, analysts say even verbal threats have unsettled energy markets. Deutsche Bank estimates oil prices could spike to $120 a barrel in the event of a disruption, up from the current $75. 'Noam Raydan, energy analyst at the Washington Institute, says a full closure is unlikely due to the economic blowback Iran itself would suffer, particularly with China, its main oil customer,' she said. Instead, Raydan believes Iran may opt for limited maritime attacks to destabilise the region without fully blocking the strait. The Strait has long been a flashpoint. In 2019, multiple vessels — flagged from Saudi Arabia, Norway and Panama — were damaged in attacks that the US blamed on Iran. Tehran had denied responsibility. During the 1980s Tanker War, Iranian forces also targeted shipping lanes, prompting US naval protection for flagged ships. Iran previously threatened closure in 2011 in response to sanctions over its nuclear programme but never acted. Under international maritime law, blocking the strait would constitute a breach and potentially an act of war. Global Reaction US Secretary of State Marco Rubio warned Iran against acting on its threat. 'It's economic suicide if they do it,' he told Fox News, adding that any closure would warrant a strong response. China, a major stakeholder in Gulf oil routes, also voiced concern. 'Keeping the region safe and stable serves the common interests of the international community,' said Chinese foreign ministry spokesperson Guo Jiakun. He called for dialogue and restraint. United Kingdom's Foreign Minister David Lammy echoed the sentiment, urging Iran not to escalate tensions. 'It would be a mistake to blockade the Strait of Hormuz,' he told BBC. European Union foreign policy chief Kaja Kallas also described any closure as 'extremely dangerous'. Broader economic risks John Konrad, maritime expert and founder of gCaptain, warned that closures or disruptions would ripple through shipping, raising the cost of transporting energy and goods globally. This could hinder fertiliser supply chains, potentially sparking food shortages and inflation. The Middle East's strategic location — between Europe and Asia — further amplifies the threat. Countries like Iraq rely on the strait for nearly all oil exports. While some Gulf states have alternate routes, the scale of reliance on Hormuz makes it a vulnerable chokepoint.
Irish Examiner
23-06-2025
- Business
- Irish Examiner
ieExplains: What is the Strait of Hormuz and why is it so important for oil?
Iran's top security body must make the final decision on whether to close the Strait of Hormuz, Iranian TV said on Sunday, after parliament reportedly backed the measure in response to US strikes on several of Tehran's nuclear sites. Iran has in the past threatened to close the strait but has never followed through on the move, which would restrict trade and impact global oil prices. What is the Strait of Hormuz? The strait lies between Oman and Iran and links the Gulf north of it with the Gulf of Oman to the south and the Arabian Sea beyond. It is 33km wide at its narrowest point, with the shipping lane just 3km wide in either direction. Why does it matter? About a fifth of the world's total oil consumption passes through the strait. Between the start of 2022 and last month, somewhere between 17.8m and 20.8m barrels of crude, condensate and fuels flowed through the strait daily, data from analytics firm Vortexa showed. OPEC members Saudi Arabia, Iran, the United Arab Emirates, Kuwait and Iraq export most of their crude via the strait, mainly to Asia. The UAE and Saudi Arabia have sought to find other routes to bypass the strait. About 2.6m barrels per day (bpd) of unused capacity from existing UAE and Saudi pipelines could be available to bypass Hormuz, the US Energy Information Administration said in June last year. Qatar, among the world's biggest liquefied natural gas exporters, sends almost all of its LNG through the strait. The US Fifth Fleet, based in Bahrain, is tasked with protecting commercial shipping in the area. History of tensions In 1973, Arab producers led by Saudi Arabia slapped an oil embargo on Western supporters of Israel in its war with Egypt. While Western countries were the main buyers of crude produced by the Arab countries at the time, nowadays Asia is the main buyer of OPEC's crude. The US more than doubled its oil liquids production in the last two decades and has turned from the world's biggest oil importer into one of the top exporters. During the 1980-1988 Iran-Iraq War, the two sides sought to disrupt each other's exports in what was called the Tanker War. In July 1988, a US warship shot down an Iranian airliner, killing all 290 aboard, in what Washington said was an accident and Tehran said was a deliberate attack. In January 2012, Iran threatened to block the strait in retaliation for US and European sanctions. In May 2019, four vessels — including two Saudi oil tankers — were attacked off the UAE coast, outside the Strait of Hormuz. Three vessels, two in 2023 and one in 2024, were seized by Iran near or in the Strait of Hormuz. Some of the seizures followed US seizures of tankers related to Iran.
Time of India
22-06-2025
- Business
- Time of India
India's oil supply chain safe from Hormuz closure: Puri
NEW DELHI: India's oil supply chain remains stable as a result of diversification in the last few years, oil minister Hardeep Puri said on Sunday as Iran's Parliament passed a motion calling for blocking the Strait of Hormuz, the critical choke point accounting for a fifth of global seaborne oil and a third of LNG shipments. 'We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks. Under the leadership of PM @narendramodi Ji, we have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now,' he said in a post on microblogging site X. Indeed, latest data from analytics firm Kpler showed Indian refiners pivoting away from the Middle-East since the outbreak of hostilities between Israel and Iran stoked fears of Hormuz closure. In June, for example, oil imports from Russia and the US outpaced combined volumes of from traditional Middle East suppliers such as Iraq and Saudi Arabia. India currently imports oil from 13 countries. India does not buy any oil from Iran. But Hormuz is still crucial for India as 40% of its oil imports still passes through this narrow waterway between Iran and Oman. Puri, however, assured citizens on supplies. 'Our Oil Marketing Companies have supplies of several weeks and continue to receive energy supplies from several routes. We will take all necessary steps to ensure stability of supplies of fuel to our citizens,' he said. India currently imports oil from 13 countries. India does not buy any oil from Iran. But Hormuz is still crucial for India as 40% of its oil imports still passes through this narrow waterway between Iran and Oman. The last word depends on Iran's Supreme Council, which has to approve the Parliament motion. Closure of Hormuz could lead to an upheaval in global oil trade and spike in crude prices since the alternative routes for evacuation of Middle-East oil is limited to about 2-3% of daily global supplies. The strait last effectively closed during the Iran-Iraq 'Tanker War' in 1984.
Time of India
22-06-2025
- Politics
- Time of India
Countdown to WWIII? Will Iran's response to US strikes spark the first Nuclear-age war?
Israel's war with Iran entered a deadlier phase after US President Donald Trump ordered strikes on Iran's three most sensitive nuclear enrichment sites—Fordow, Natanz , and Isfahan—in what he described as a clear warning. 'The bully of the Middle East must now make peace,' Trump said during a televised address. 'There will either be peace or there will be tragedy for Iran.' He added that if Iran retaliates, more strikes would follow 'with precision, speed and skill.' According to US officials, B-2 stealth bombers were deployed with GBU-57 'bunker buster' bombs targeting Iran's hardened underground sites. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If You Eat Ginger Everyday for 1 Month This is What Happens Tips and Tricks Undo Iran immediately downplayed the strikes. State media official Hassan Abedini claimed sensitive material had been evacuated in advance. Iran's Foreign Minister Abbas Araghchi condemned the attack as a 'barbaric violation' of international law and warned, 'In accordance with the UN Charter... Iran reserves all options to defend its sovereignty, interest, and people.' That same night, Iran launched missiles at Israeli cities—signalling the war had just entered a dangerous new stage. Live Events Tehran's dilemma: Retaliate or recalculate? Iran's leaders are now under pressure to respond. Some in Tehran argue a strong reaction is necessary to maintain credibility, while others warn of devastating consequences. 'If we do not react, the US will not leave us alone,' said conservative analyst Reza Salehi in Tehran. Jonathan Panikoff of the Atlantic Council summed up the stakes: 'Iran can choose to strike US bases in a limited fashion... or it could go all in and trigger a regional war.' The choices are grim. A major escalation could lead to more US strikes, risking the collapse of Iran's infrastructure. But doing nothing could make the regime appear weak, embolden its adversaries, and alienate its support base. Strait of Hormuz: First flashpoint One of the most immediate risks lies in the Strait of Hormuz—a narrow 33-km maritime corridor through which 20% of global oil flows. Iran has long viewed the strait as a pressure point. In past crises, it threatened to mine the area with up to 6,000 naval mines. It could repeat those tactics now, using fast-attack boats and shore-based missiles to block shipping lanes. Disruption here would send oil prices soaring and jolt financial markets worldwide. The region has seen this before. During the 1980s Tanker War, Iran and Iraq targeted each other's oil exports, causing the most intense attacks on merchant shipping since World War II. Hundreds of civilians died, and the economic ripple effects were global. History could repeat itself. WWIII News: US bases in the crosshairs The United States has a formidable presence in the region—40,000 troops across 19 bases, including sites in Qatar, Bahrain, Iraq, Kuwait, and the UAE. Each of these bases may now face the threat of Iranian missiles or drone strikes. Al Udeid Air Base (Qatar): CENTCOM's forward HQ, hosting 10,000 troops. Crucial for operations in Syria and Iraq. NSA Bahrain: Home to the US Navy's Fifth Fleet. Around 9,000 troops stationed in the heart of the Gulf. Al-Asad & Harir Bases (Iraq): Targets of past Iranian attacks, including recent strikes linked to Iran-backed militias. Camp Arifjan & Ali Al-Salem (Kuwait): Major logistics centres housing over 13,000 personnel. Al Dhafra (UAE): Equipped with F-22s and surveillance assets, housing 3,500 troops. Meanwhile, US naval power is building. The USS Carl Vinson is already deployed in the Arabian Sea, with the USS Nimitz en route. Additional destroyers are stationed in the Red Sea and Mediterranean. As tensions rise, these assets could be used for defence—or be drawn into a wider confrontation. Axis of Resistance: Recalibrated but not broken Iran's network of proxy forces—known as the Axis of Resistance—has been weakened by Israeli strikes but remains functional. Hezbollah: Severely hit last year. Most of its top commanders are believed dead, and it is unlikely to lead a major counteroffensive. Hamas & Islamic Jihad: Battered during Israel's war in Gaza. Their operational capacity is diminished. Houthis (Yemen): Still active. They've pledged to resume attacks in the Red Sea if the US deepens its role. Shiite Militias (Iraq): Have launched recent drone attacks on US bases. Many are closely aligned with Tehran. Experts say Iran may also activate overseas operations, similar to the 1994 attack on a Jewish centre in Argentina. These low-cost, high-impact actions fall under Iran's strategy of asymmetric warfare—a method it has used for decades to pressure more powerful adversaries. Quds Force: Still in the shadows The Quds Force, the foreign arm of Iran's Islamic Revolutionary Guard Corps, is believed to remain intact despite recent Israeli strikes. Though reports suggest its commander Esmail Qaani may have been targeted, the force's infrastructure is designed to survive and respond without central command. Created in 1988, the Quds Force runs Iran's foreign military operations—coordinating proxy groups, funding militias, and carrying out covert missions. Even as Hezbollah is pushed back and Hamas is isolated, this unit offers Iran the means to strike indirectly, globally, and without open attribution. Retaliate now or wait? Tehran's clock is ticking Inside Iran's decision-making circles, three scenarios are on the table: Immediate retaliation using missiles or drones against US bases and assets. Delayed retaliation, hitting at a time when American forces are less alert. No retaliation, instead reopening diplomacy and framing the US strikes as illegal aggression to win global support. Each option carries risk. Each could reshape the future of the region. A former Revolutionary Guard commander, Gen. Mohsen Rezaei , had warned before the US strikes, 'If Trump enters this conflict, Iran will strike American military assets, mine the Persian Gulf, and attempt to shut the Strait of Hormuz.' That moment may now be at hand. Iran's playbook: Asymmetric warfare beyond borders Iran's strategic doctrine, shaped since the 1979 revolution, relies on asymmetric warfare, actions that blur the lines between overt military response and deniable covert operations. Supreme Leader Ayatollah Khamenei has long endorsed a posture of 'forward deterrence.' This includes supporting proxy militias, conducting cyber warfare, and even orchestrating targeted killings or foreign sabotage operations. This strategy is executed primarily through the Quds Force, a covert wing of the Islamic Revolutionary Guard Corps (IRGC). Its operatives run clandestine networks in Iraq, Syria, Yemen, and further abroad. Despite reports of recent Israeli strikes on IRGC command centres—one of which allegedly killed General Hossein Salami—the infrastructure of the Quds Force remains functional. Field commanders are trained to operate autonomously, with contingency plans for rapid response even under decapitation scenarios. In essence, Iran can still strike without formally taking credit—and it may prefer this method in the coming weeks. Iran's nuclear programme remains dispersed and partially functional despite the US attack. Though the IAEA and US intelligence say Iran hasn't pursued a bomb since 2003, enrichment continues at 60%—close to weapons-grade. Experts caution that strikes like these can delay, but not erase, Iran's capabilities. With diplomatic options fading and public anger rising, the Islamic Republic must now decide: will it retaliate boldly, strike strategically, or attempt to recalibrate? As Trump warned, 'Remember, there are many targets left.'
