Ship traffic through the Strait of Hormuz was well below 10% of normal volume this Thursday, despite the ceasefire between the United States and Iran, while Tehran reaffirmed its control, warning ships to stay within its territorial waters.
Hundreds of oil tankers and other vessels have been trapped in the Persian Gulf since the start of the war with Iran on February 28, reducing global oil supply by 20%, the largest disruption to supply in history.
Prices of some types of oil reached new historic records on Thursday, as the crisis showed few signs of abating.
Only seven ships crossed the Strait in the last 24 hours, compared with the usual around 140, according to tracking data.
Among the ships affected were one tanker and six bulkers, according to data from Kpler, Lloyd’s List Intelligence and Signal Ocean.
A chemical tanker was about to cross the border into India, tracking data on MarineTraffic and Pole Star Global platforms indicated.
‘Most of the shipping companies are likely to remain cautious, and two weeks will not be enough to clear the backlog of orders, even if there is a significant uptick in traffic,’ said Torbjorn Soltvedt of risk intelligence firm Verisk Maplecroft.
The Islamic Revolutionary Guard Corps of Iran directed vessels to navigate Iranian waters around Larak Island to avoid the risk of naval mines on the usual Strait routes, the semi-official Iranian Tasnim News Agency reported on Thursday.
The vessels were to enter the Strait north of Larak Island and exit shortly to the south, until further notice, in coordination with the IRGC Navy, Tasnim reported.
The British maritime security company Ambrey said in a statement that the risks persist for ships not authorized by Iran, especially those affiliated with Israel and the United States.
‘Even shipments with apparent clearance have been turned back mid-transport in recent weeks,’ it said.
TOLLS AND CRYPTOCURRENCIES
News reports in the media suggested that Iran might want to charge a toll for ships passing through the region, with some estimating the amount at US$2 million. Ship-tracking data show that some vessels are already using the unusual route around Larak Island.
Western leaders, however, rejected the idea of paying such fees.
Recently, a LPG tanker from Pine Gas, flagged in India, took an unusual route around Larak Island to leave the Gulf.
The company did not pay Iran any transit fee and the vessel was not boarded by the Islamic Revolutionary Guard Corps, its chief executive, Sohan Lal, told Reuters.
The United Nations’ maritime agency, the International Maritime Organization, said there is no agreement permitting the imposition of tolls for crossing international straits.
‘Any such charges would set a dangerous precedent,’ a spokesperson for the organization said on Thursday.
Iran will require payment of tolls in cryptocurrencies to keep control over the Strait of Hormuz during the two-week ceasefire, according to statements by Hamid Hosseini, spokesman for the Iran Oil, Gas and Petrochemical Exports Union, published on Wednesday by the Financial Times.
Mitsui O.S.K. Lines, one of Japan’s three largest shipping companies, has managed to remove three tankers from the strait in recent days.
The company is awaiting guidance from the Japanese government on how to proceed during the two-week ceasefire, its president and CEO, Jotaro Tamura, told Reuters on Thursday.
India has granted exemptions to allow entry into its ports for two Iranian shipments, one aboard an older tanker and the other subject to sanctions, two officials familiar with the matter said on Thursday.
Among the ships, there was one carrying LPG for cooking. India faces its worst gas crisis in decades and has implemented rationing to ensure domestic supply.
The United States issued a surprise exemption to Iranian oil exports last month, which is due to end on April 19, in an effort to support global supply and ease the rise in fuel prices.
Since February 28, at least 23 Iranian-flagged tankers have reached Asia, keeping pace with pre-war levels, according to United Against Nuclear Iran, a U.S.-based rights group that monitors Iran-related traffic.
