Iran Orders Closure of Strait of Hormuz, Impacting Global Oil and Gas Shipments

Tehran: Iran has ordered the closure of the Strait of Hormuz, a critical global transit route for oil and gas. This decision follows significant attacks by the United States and Israel, prompting several major oil and gas tankers and trading companies to suspend shipments through the strait.

According to Thai News Agency, officials from the European Union's maritime authority disclosed that Iran's Islamic Revolutionary Guard Corps has been communicating with ships via VHF radio, prohibiting their passage through the Strait of Hormuz. This route is crucial for transporting one-fifth of the world's oil, including supplies from Saudi Arabia, the United Arab Emirates, Iraq, Kuwait, and Iran, as well as LNG shipments from Qatar.

In response, the Greek Ministry of Maritime Affairs has advised against navigating the Persian Gulf, Arabian Gulf, Gulf of Oman, and the Strait of Hormuz. Meanwhile, the British Navy has stated that Iran's directive is not legally enforceable, urging vessels to proceed with caution.

Intertango, an association of oil tankers, reported that the U.S. Navy has issued warnings against sailing in the Middle East region, covering the Persian Gulf, Arabian Gulf, Strait of Hormuz, Gulf of Oman, and northern Arabian Sea, citing safety concerns. Poten and Partners, an energy trading consultant and broker, informed clients that while shipping through the strait has not been entirely halted, disruptions are escalating rapidly. Germany's Hapag-Lloyd has already suspended shipments through the strait, and other companies are adjusting their operations. Denmark's Maersk is working with safety companies for ship protection in the Red Sea and Gulf of Aden, while France's CMA has recommended ships to seek shelter for safety.