Oil and gas majors and traders suspend shipments via Hormuz, sources say

Several tanker operators, oil companies, and trading firms have halted shipments of crude oil, fuel, and liquefied natural gas through the Strait of Hormuz. This decision follows attacks by the U.S. and Israel on Iran, after which Tehran announced it had closed navigation in the area, according to trading sources on Saturday. A senior executive from a major trading firm stated, “Our ships will remain stationary for several days.” Satellite images from tanker trackers indicate that ships are backed up near major ports like Fujairah in the United Arab Emirates and are not moving through Hormuz. Multiple vessels have received radio messages from Iran’s Revolutionary Guards stating, “no ship is allowed to pass the Strait of Hormuz,” as reported by an official with the EU naval mission Aspides to Reuters. The British Navy mentioned that Iran’s orders are not legally binding and suggested that vessels proceed with caution. While vessel traffic through the Strait of Hormuz has not completely ceased, disruptions are increasing quickly, according to shipbroker Poten & Partners in a note to clients. The tanker association INTERTANKO reported that the U.S. Navy had advised against navigation in the entire Gulf region, including the Gulf of Oman, North Arabian Sea, and the Strait of Hormuz, citing concerns for shipping safety. Greece’s shipping ministry also warned vessels on Saturday to steer clear of the Persian Gulf, Gulf of Oman, and the Strait of Hormuz, as noted in an advisory seen by Reuters. About 20% of the world’s oil, including supplies from Saudi Arabia, the United Arab Emirates, Iraq, Kuwait, and Iran, passes through Hormuz, along with significant amounts of LNG from Qatar. Laura Page from consultancy Kpler reported that fourteen LNG tankers have shown signs of slowing down, turning around, or stopping in or near the Strait, and the number is expected to grow, which could threaten Qatari LNG exports.