Strait

UAE says new pipeline that will bypass Strait of Hormuz is nearly 50% complete (VIDEO)

The UAE has already completed nearly 50% of a second pipeline that bypasses the Strait of Hormuz, said the CEO of Abu Dhabi National Oil Co,, or ADNOC. The new pipeline will double ADNOC’s export capacity through Fujairah, a port that sits on the Gulf of Oman just beyond Hormuz. The United Arab Emirates has built nearly 50% of a second pipeline that will bypass the Strait of Hormuz, said the CEO of Abu Dhabi National Oil Co., or ADNOC, on Wednesday.

“Right now, too much of the world’s energy still moves through too few chokepoints,” Sultan Ahmed Al Jaber said in an interview at the Atlantic Council. The new pipeline will double ADNOC’s export capacity through Fujairah, a port that sits on the Gulf of Oman just beyond Hormuz. The UAE has accelerated the construction of the project due to the Iran war. The pipeline is expected to become operational in 2027. Iran has blockaded Hormuz since early March, choking off the oil and gas exports of the UAE and the other Gulf Arab producers. The UAE has redirected some oil exports through an existing pipeline to Fujairah, which has a maximum capacity of 1.8 million barrels per day.

The Hormuz blockade has triggered the most severe energy supply disruption in history, al Jaber said. More than 1 billion barrels of oil have been lost due to the strait’s closure, the CEO said. Nearly 100 million additional barrels are lost every week that Hormuz remains closed, he said. It will take at least four months to ramp oil flows up to 80% of normal levels even if the conflict ends immediately, Al Jaber said. It will take until the first or second quarter of 2027 for oil flows to fully normalize, he said. “This is not just an economic problem,” Al Jaber said.

“In fact, this sets a dangerous precedent once you accept that a single country can hold the world’s most important waterway hostage.” Iran blockaded Hormuz after the U.S. and Israel launched a massive wave of airstrikes against it on Feb. 28. Those strikes killed top Iranian leaders including head of state Ayatollah Ali Khamenei. U.S. Energy Secretary Chris Wright told CNBC on Friday that the importance of Hormuz to the global energy market will decline after the Iran war, as Gulf nations build more pipelines to bypass it. “This is a card you can play once,” Wright said of Iran’s blockade. “There’ll be other routes for energy to get out of the Persian Gulf.” “We will see a decreasing importance from the Strait of Hormuz, but not a decreasing importance of those nations’ energy production and energy supply,” he said.

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Strait of Hormuz Forces Inventory Increase—at a Price

Import businesses have felt the impact as rerouted cargo vessels clog unprepared African ports, tying up inventory.

Asset-light corporations are becoming asset-heavier organizations as the on-again, off-again closure of the Strait of Hormuz continues to disrupt global supply chains.

During the 30 days preceding Aug. 17, an average of 16.9 ships passed through the Strait transporting 2.2 million barrels of crude and 380,000 barrels of petrochemicals, as reported by The Strait of Hormuz Ship Monitor. By comparison, during the first quarter of 2025, the U.S. Energy Information Administration estimated that 14.2 million barrels and 5.9 million barrels of petroleum products were shipped daily through the waterway — a decrease of approximately 84% and 94%, respectively.

According to the Atlas Institute for International Affairs, the Cape route is becoming the default option for vessels. As a result, import businesses have felt the impact as rerouted cargo vessels clog unprepared African ports, tying up inventory even longer.

Bolstering inventories and increasing liquidity buffers may initially have been a short-term response to the disruption, but industry insiders view the change as permanent.

“Just-in-time has become just-in-case, and that converted inventory is now on the CFO’s balance sheet,” John Stevens, senior vice president and global head of financial institutions and working capital at Kybira, told Global Finance. ”Higher [days inventory outstanding] stretches the cash conversion cycle and that cash has to come from somewhere: You borrow it or extend supplier terms.”

Adding Days

According to the authors of Allianz Trade’s Days Sales Outstanding (DSO) & Cash Collection Cycle (CCC) report, published in July, the disruption is expected to add a global average of two days to the CCC in the second half as its effects permeate supply chains.

The authors also expected that the U.S.-Iran conflict would result in a lighter version of the 2022 supply chain shock, little appearing in listed firms’ first-half financials and more tangible in the second half as the disruption permeates supply chains with a lag.

“Electronics, pharmaceuticals, textiles, automotive suppliers, metals and paper face the most direct pressure: already inventory-heavy and running elevated cycles, they have the least room to absorb a further DIO rise without tipping their financing needs into distress territory,” they wrote. “Construction and machinery & equipment carry the largest absolute cycles (approximately 103 days) and are unlikely to escape a broad inventory rebuild. Second, the shock should be partly offset by continued private-sector spending on AI infrastructure and data centers, which supports computers & telecoms and software & IT, keeping a meaningful share of the economy on a compressing or at worst flat trajectory.”

Inventory’s Cost

“Every day of DIO you add is cash pulled out of circulation, and that comes at a premium at current financing costs,” said Stevens. “CFOs should be pricing the free cash flow hits before any DIO build-up.”

Companies should count days and dollars rather than units, he added. “Any universal number, in either units or DIO, is a guess. Transit patterns through the Strait of Hormuz have been highly volatile, with flows falling sharply and recovery remaining uneven.”

There is light at the end of the tunnel — if a company’s balance sheet is large enough.

“Large, investment-grade buyers may be better placed to fund inventory builds, while their mid-market suppliers may not be,” said Stevens. “If payment terms are stretched to fund DIO extensions, the biggest squeeze can land one or two tiers down the value chain. Supply-chain finance can help address that gap when it is structured transparently and appropriately.”

Rob Daly covers fintech and the economy. Contact him at rdaly@gfmag.com. 

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Crew of ship sustains casualty after vessel is struck in Hormuz Strait

A ship came under attack in the Strait of Hormuz on Tuesday amid claims by Tehran’s top negotiator that the critically important sea route would remain closed. The unnamed vessel was sailing eastbound out from Persian Gulf when it was hit. File photo by Olivier Hoslet/EPA

Aug. 18 (UPI) — A ship transiting the Strait of Hormuz came under attack on Tuesday, sustaining at least one casualty, amid claims by Tehran’s top negotiator that the critically important sea route would remain closed pending the lifting of the U.S. naval blockade and the unfreezing of Iranian assets.

The British Royal Navy’s U.K. Maritime Trade Operations center said in an alert that the security officer of the ship’s owner had reported that the engine room of the vessel was struck by an unknown projectile while sailing outbound through Strait of Hormuz [from the Persian Gulf].

“The impact caused damage to the engine room and resulted in a crew casualty. The remaining crew are currently being assisted by the Omani Coast Guard. At present, no environmental impact has been reported,” said UKMTO which did not identify the ship.

It was not immediately clear if the affected crew member was injured or killed, or what type of weapon was used in the attack.

The incident coincided with comments by Bagher Ghalibaf, speaker of the Iranian parliament, vowing not to permit shipping to pass through the strait until the United States complied with terms set out in a cease-fire deal the two sides signed in June, including the lifting of sanctions preventing Iran from selling oil abroad.

“I want to state clearly that the Strait of Hormuz will not be opened until the American commitments stipulated in the memorandum of understanding… are implemented,” Ghalibaf said in an address carried on Iranian state television.

Sailings through the strait have remained drastically curtailed, as they have been since the war started on Feb. 28, despite the 14-point framework calling for it to be reopened to commercial vessels for the duration of the 60-day deal, which expired Monday.

The state-run Islamic Republic News Agency added the ending of all military threats and operations by the United States to Ghalibaf’s list of demands.

The U.S. Navy is currently enforcing a blockade preventing ships from entering or leaving Iranian ports.

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Erdogan calls for Strait of Hormuz reopening amid oil disruption | Recep Tayyip Erdogan

Turkish President Recep Tayyip Erdogan has called for the Strait of Hormuz to reopen, stating that global oil flows must resume. He added that both Turkey and Iran support keeping oil moving through the strategic waterway at the centre of US–Iran tensions.

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Trump threatens to make the Strait of Hormuz a US territory: Can he? | Explainer News

President Donald Trump on Friday said he would designate the Strait of Hormuz a territory of the United States “pretty soon” as the status of the waterway, a global chokepoint through which a fifth of global oil and gas passes, remains under a military and diplomatic deadlock.

Iran has fired back, dubbing Trump’s threats as “nonsense” as the memorandum of understanding signed between the two in June expires on Sunday.

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Tehran has blocked the passage to leverage it as a global economy kill switch, while Washington has maintained a military naval blockade against Iran’s ports, choking its economy further.

In the apparent game of who blinks first – though Trump says negotiation with Iran “is like chess” – the US president’s military rhetoric has also followed a pattern throughout the ongoing war, which began on February 28. On many occasions, he has threatened to attack Iran only to pull back at the eleventh hour.

So, can the US actually make the Strait of Hormuz its territory? And what does that even mean?

Children swim as ships are seen anchored in the Strait of Hormuz on August 10, 2026, off the coast of Bandar Abbas, Iran
Children swim as ships are seen anchored in the Strait of Hormuz on August 10, 2026, off the coast of Bandar Abbas, Iran [File: Ali Saeedi/Getty Images]

What has Trump said?

“After we finish defeating Iran, which is being very badly defeated, pretty soon I’ll be declaring the Hormuz Strait a territory of the United States,” Trump said during a speech at a police academy in New York.

Referring to the naval blockade, Trump went a step further to suggest that the Strait of Hormuz is already a US territory. “Essentially, that’s what it is,” he added.

“We have the blockade. No ships get through unless we want them to,” he said.

Iran maintains that it controls the waterway — and despite the US claims, some vessels have transited the passage despite the blockade, maritime navigation data shows.

“It’s clear the US president, with a chuckle as he said that, even himself, is not taking this particularly seriously,” said Al Jazeera’s Kimberly Halkett, reporting from Washington, DC.

“These are the territorial waters of Iran and Oman. But what the US president likes to do is get under the skin of adversaries, and, in this case, it’s Iran,” she said.

“What we should point out, though, is what the US president is not backing down on is the fact that there is a naval blockade by the United States in effect in the Strait of Hormuz, and that is ongoing.

Iran's Foreign Minister Abbas Araghchi has blamed the US for a reutrn to violence in the Strait of Hormuz, and said new paths will be required to reach a lasting peace. [File: Elke Scholiers/Getty Images]
Iran’s Foreign Minister Abbas Araghchi has blamed the US for a return to violence in the Strait of Hormuz [File: Elke Scholiers/Getty Images]

How has Iran reacted to it?

Several Iranian officials have sharply reacted to Trump’s remarks. The head of the judiciary came out with furious rhetoric, calling the US president criminal and feather-headed, his remarks “nonsense” and saying the Strait of Hormuz belongs to Iran.

Kazem Gharibabadi, Iran’s deputy foreign minister, also responded, saying, “The Strait of Hormuz cannot be seized by tweet, nor by aircraft carrier, nor by issuing an order, nor by an election speech.”

“The Strait of Hormuz has been Iranian, is Iranian, and will remain Iranian; this strait will only be closed and opened under Iran’s command, and as long as you do not accept the reality of defeat and cease your fanciful delusions, Iran will continue to enforce the blockade,” he added.

Meanwhile, Iran has been holding talks with Oman, the only other coastal country in the strait, to reach a settlement on the management of maritime traffic in the strait. Foreign Minister Abbas Araghchi, in comments carried by the Iranian Students’ News Agency, said negotiations between Tehran and Muscat “may reach a conclusion soon”.

The reopening of the waterway, however, is a separate issue, Araghchi said, where Washington has to adhere to promises made in the June memorandum of understanding, including removal of the naval blockade and sanctions on Iran.

That is the new Iranian position on the ongoing war, where Tehran is now seeking these US concessions for mere reopening of the waterway, which were originally conditions for ending the war.

INTERACTIVE - IRGC releases map of control over Strait of Hormuz - May 5, 2026-1777975253

Is Trump’s claim even practical?

First, sovereignty does not exchange hands over a mere unilateral presidential proclamation.

For instance, Trump had earlier threatened to send US boots to Iran’s Kharg Island to take over the key Iranian oil export hub in the Gulf. Tehran then responded by saying that its Islamic Revolutionary Guard Corps would be waiting for them, “with fingers on the trigger”. Trump had previously also threatened to take over Greenland, an autonomous territory of Denmark.

Bruce Fein, associate deputy attorney general under President Ronald Reagan, says Trump is constitutionally powerless to annex on his own.

“A treaty ratified by the Senate or statute is constitutionally required to annex territory, as with the Louisiana Purchase or annexation of Hawaii or Panama Canal or acquisition of Puerto Rico or the Philippines in ending the Spanish-American War.

If he goes ahead with annexation, Fein says, it would “constitute the crime of aggressive war under international law, including the UN Charter”.

Natalie Klein, a specialist in international law and associate dean at the University of New South Wales, Sydney, said, “Essentially the only way Trump’s claim could have any plausibility under international law would be if the US was asserting control over the Strait as an occupying power perhaps comparable to the authority the US exercised over Japan immediately after World War II.”

“But in that scenario, the US would need to have military control over Iran or at least its coastal areas.”

Trump’s war on Iran is also widely unpopular in the US, where the president and his fellow Republicans are seeking to defend their narrow congressional majorities in November’s midterm elections. Barely 35 percent of Americans approve of the war, according to a Reuters/Ipsos poll.

Several US media publications have reported that Washington is running short on munitions, including the crucial Patriot antimissile interceptor. Petrol prices have also increased, and are now averaging more than $4 a gallon – a major issue for Americans.

Last week, US Vice President JD Vance said the Trump administration’s top priority in the war was to control increasing petrol prices, while stopping Iran’s supposed race to a nuclear weapon now comes second.

Tehran has also attacked its neighbours in the Gulf, which analysts say are aimed at forcing the regional countries to push Washington into a corner at the negotiating table.

Even Iran does not enjoy unfettered sovereignty over the strait as a whole, under international laws, including the UN Convention on the Law of the Sea (UNCLOS), but only some coastal sites near its own borders.

The UNCLOS recognises coastal-state sovereignty over territorial waters, but limits that territorial sea to 12 nautical miles (22km), and notes that ships enjoy a right of passage that “shall not be impeded”.

The Strait of Hormuz is in international waters, sandwiched between the coasts of Iran and Oman. At its narrowest point, the strait is only about 21 nautical miles (39km) wide — and the two countries’ 12-nautical mile territorial seas overlap across it.

While neither the US nor Iran has ratified UNCLOS, the convention’s rules on international straits are widely regarded as customary law.

Paul Musgrave, an associate professor of government at Georgetown University in Qatar, said Trump usually makes such statements primarily to speak to a US audience, especially his support base.

It is important to remember, he added, that Trump is a product of US reality TV and is, at the end of the day, a “showman”.

“This is a guy who speaks big. You have to take him seriously in some cases but not literally,” Musgrave cautioned.

Trump cannot be taken seriously, especially in this case because making the strait US territory is physically and legally impossible, he said. But the statements do show that Trump is determined not to back down from Iran and accept defeat in the months-long war, he added.

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Trump says he will make Strait of Hormuz a U.S. territory

President Donald Trump wants the Strait of Hormuz, between Oman and Iran, to become U.S. territory. Photo by Stringer/EPA

Aug. 15 (UPI) — President Donald Trump on Friday said he wants the Strait of Hormuz to become U.S. territory.

Speaking at an event in New York, Trump said he plans to declare ownership of the waterway between Oman and Iran once the war is over.

“After we finish defeating Iran, which is being very badly defeated, pretty soon I’ll be declaring the Hormuz strait a territory of the United States,” Trump said, as reported by the Guardian.

“Essentially, that’s what it is,” he added. “We have the blockade — no ships get through unless we want them to.”

Iran’s deputy foreign minister, Kazem Gharibabadi, on Saturday called the president’s remarks “fanciful delusions.”

“Once and for all, accept the reality: up to this point, you have suffered strategic and heavy defeats,” Gharibabadi said in a statement on X. “The Strait of Hormuz has been Iranian, is Iranian, and will remain Iranian.”

“This strait will only be closed and opened under Iran’s command, and as long as you do not accept the reality of defeat and cease your fanciful delusions, Iran will continue to enforce the blockade,” Gharibabadi added.

Traffic through the strait, through which 20% of the world’s oil and gas usually pass, has slowed dramatically since Trump launched the war with Iran on Feb. 28.

Six ships traveled through the strait last weekend, where usually as many as 140 would pass in a single day, The Hill reported.

Both Trump and Iranian officials claim to have control of the strait.

“We have control over it, nobody else, only us,” Trump told reporters earlier this week, The Hill reported. “Our Navy is unbelievable and things are going great for our country.”

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IEA and OPEC split on global oil demand estimates as Strait of Hormuz closure drags

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Two of the most influential voices in energy markets set out opposing readings of the year on Wednesday.


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The IEA now expects the world to burn less oil in 2026 than it did in 2025, its first such call since Covid-19 ground the global economy to a near-halt, while OPEC still pencils in growth, leaving them more than two million barrels a day apart.

The Paris-based IEA now expects global oil demand to fall by 1.6 million barrels per day (mb/d) in 2026, a downgrade of 510,000 b/d from July.

“The ongoing closure of the Strait of Hormuz and elevated fuel prices continue to weigh on oil consumption,” it said, cutting its second-half forecast by roughly 550,000 b/d.

OPEC still expects demand to grow, though its estimate has been trimmed for a fourth consecutive month, to 580,000 b/d from 780,000 b/d.

The producer group has consistently argued the war has done less damage to consumption than Western forecasters believe, and the two sets of numbers imply a difference of about 2.2 mb/d in what the world will burn this year.

Supply still 6.3 million barrels short

The supply picture explains the pessimism.

Global production rose by 2.4 mb/d to 101.5 mb/d in July but remained 6.3 mb/d below year-earlier levels, with 8.3 mb/d of Gulf output still shut in.

Gulf production climbed to 23.9 mb/d, yet regional exports fell 2.1 mb/d to 15 mb/d after the Strait of Hormuz was effectively closed again in early July and tankers and infrastructure came under attack, with loadings sliding from 20 mb/d to around 12 mb/d.

With no deal to reopen the waterway or secure passage through Bab el-Mandeb, the IEA cut its supply forecasts again and now expects output to fall by 4.3 mb/d this year.

Observed global stocks also dropped by 69 million barrels in July to just under 7.9 billion, down 410 million since the war began.

Both bet on 2027

Where the two agree is next year.

OPEC now expects demand to grow by 2.2 mb/d in 2027, an upgrade from the 1.94 mb/d it forecast last month, while the IEA goes further still at 2.4 mb/d.

That is an inversion worth highlighting, as the gloomier forecaster for this year delivers a more bullish read for the next.

The IEA reads the damage as a blockage rather than a collapse, oil that cannot reach buyers rather than demand that has vanished, so the deeper this year’s hole, the steeper the climb out of it once Hormuz reopens.

OPEC, which never accepted that consumption fell much, has less ground to make up for.

The agency’s outlook rests explicitly on de-escalation, assuming flows gradually recover and turning this year’s supply contraction into growth of 8.3 mb/d, flipping a 1.3 mb/d deficit into a 4.6 mb/d surplus.

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IEA warns of sharp drop in global oil stocks due to Hormuz Strait closure

The International Energy Agency warned Wednesday of sharp drop in oil stocks amid renewed disruption to exports from Gulf producers with the Iran war seeing “lower volumes” transiting the seas to markets around the world. File photo by Olivier Matthys/EPA

Aug. 12 (UPI) — The International Energy Agency warned Wednesday of a sharp drop in global stocks oil amid renewed disruption to exports via the Hormuz Strait and Caspian Sea resulting in “lower volumes of oil” transiting the seas to markets around the world.

In its August Oil Market Report, the agency said measurable global oil inventories — strategic reserves, on tankers at sea — plunged by 69 million barrels in July to just under 7.9 million barrels, down from 410 million barrels per day at the start of the war at the end of February.

Onshore stocks declined by just 6 million barrels per day as the pace of IEA releases of its emergency stocks eased, even as China continued to draw down on its crude oil reserves.

“Although the market is projected to return to surplus towards the end of this year, risks remain substantial and the urgency of reopening the Strait has increased, as previously available inventory buffers are rapidly depleting,” the IEA said.

The IEA data comes two days after the U.S. Department of Energy said the country’s Strategic Petroleum Reserve had fallen to less than 300 million barrels in the previous week, its lowest level in 43 years — but still well above the 70 million barrel minimum for it to run as intended.

President Donald Trump ordered 172 million barrels to be released in March after exports from Gulf producers including Saudi Arabia Kuwait, Bahrain, and the UAE were severely curtailed by Iran closing the Strait of Hormuz.

Use of other routes to move oil and the drawing down of inventories, including China’s massive 1.4 billion barrel reserve which has seen a sharp drop in its oil imports, have so far helped ward off the damaging global oil shortage it was feared the closure of the Hormuz Strait would trigger.

The IEA also warned that the destruction of global demand for oil was escalating, driven by the continuing closure of the Strait of Hormuz and high fuel prices suppressing consumption, forecasting a 1.6 million barrels per day drop in demand in 2026, up from its previous estimate of 1 million barrels per day.

However, it said said the pace of market contraction would slow, down from a 4.9 million barrels per day decline in the second quarter to 2.8 million barrels per day drop in the third quarter, and return to growth in the final quarter, with expansion of global demand of 2.4 million barrels per day expected in 2027.

On the supply side, the IEA said overall production for 2026 would fall more sharply than demand, but would bounce back to outpace demand in 2027.

Production rose by 2.4 million barrels per day to 101.5 barrels per day in July, but remained well short of the 6.3 million barrels per day supply growth pace seen in July 2025, with 8.3 million barrels per day of Persian Gulf output “still shut in.”

“Renewed hostilities and maritime disruptions in July and early August undermined the recovery efforts, reducing projected third quarter 2026 oil supply by 1.7 million barrels per day compared with last month’s report.

“Global oil supply is now projected to decline by 4.3 million barrels per day on average in 2026 and rebound by 8.3 million barrels per day next year to 110.3 million barrels per day,” the IEA said.

Martin Luther King Jr. delivers his famed “I Have a Dream” speech from the steps of the Lincoln Memorial in Washington on August 28, 1963. The speech galvanized the nation’s civil rights movements and led to the passage of the 1964 Civil Rights Act, the 1965 Voting Rights Act and the 1968 Fair Housing Act. File photo by UPI | License Photo

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Trump eases off strikes on Iran, bets sanctions will reopen Strait of Hormuz

President Trump signaled he’s prepared to let economic pressure on Iran build rather than launch fresh military strikes to force a reopening of the Strait of Hormuz, even as the Islamic Republic reiterated that the conditions still aren’t in place to allow free passage through the key waterway.

“We are just watching Iran with its huge inflation and the fact they have no money,” Trump told Axios in an interview on Sunday, saying that a US naval blockade of the country was deepening its financial woes. “We are low-keying it.”

The president’s comments mark a shift from his repeated threats to escalate the bombing campaign against Iran and come amid lingering talks between Tehran and Oman to reopen Hormuz. Iran has said it’s nearing a deal, while laying out a list of demands for Washington to meet before shipping can resume — including the lifting of sanctions.

“As long as hostile actions continue, the conditions for ensuring the safety of this waterway are not in place,” Iran’s foreign ministry spokesman Esmail Baghaei told reporters on Monday. “Its reopening is contingent on the US ceasing its illegal actions, lifting the siege and compensating for damages.”

Brent crude rose 1% on Monday to over $84 a barrel, extending a rally of more than 5% over the previous three sessions. The contract is still down since the start of the month.

The Islamic Republic’s economy has taken a hammering from the war, with much of its industrial capacity destroyed, crude exports severely curtailed by a US blockade and central bank data showing year-on-year inflation recently reaching 77%.

The currency, meanwhile, has fallen more than 10% from its prewar level, adding to the economic pressure on Iranians. A depreciation of the rial sparked violent nationwide protests that peaked early this year, leading to a crackdown by authorities that left thousands dead. There have been no signs of the anti-government demonstrations resuming.

Iran reemphasized its determination to continue wielding control over Hormuz in the face of US opposition by naming hard-line former Islamic Revolutionary Guard Corps commander Mohsen Rezaee to its top security post over the weekend. An advocate for full Iranian control over the waterway, he served as military adviser to Iranian Supreme Leader Mojtaba Khamenei and will now head the Supreme National Security Council, which coordinates decisions on the war and negotiations to end it.

Rezaee replaces Mohammad Bagher Zolghadr, a fellow hard-liner who accepted a new position as political adviser to the supreme leader. The appointments were reported by the state-run Islamic Republic News Agency late Sunday.

Over the weekend, Iranian Foreign Minister Abbas Araghchi said a pact with Oman to establish a shipping route through the strait was “very close,” without providing details on the substance. He ruled out direct talks with the US for now, but said the two sides are exchanging messages through intermediaries.

The Strait of Hormuz, through which one-fifth of the world’s oil and liquefied natural gas transited before the war, has become a key sticking point in the negotiations to bring a lasting end to the fighting that began when the US and Israel staged airstrikes on Iran on Feb. 28. Trump has demanded free passage for months.

Tehran’s demands for a full reopening include the US lifting its naval blockade on Iranian ports, the release of frozen assets and compensation for war damage. It has also called for a permanent end to attacks on groups it backs in Lebanon, Iraq, Yemen and Gaza. It’s unclear how strictly Iran will stick to the list of conditions.

Some of the demands will be difficult for the US to meet alone. In Gaza, a proposal by US-backed mediators to disarm Iran-backed Hamas and push Israeli army out of the Palestinian enclave was rejected by Israel’s Prime Minister Benjamin Netanyahu on Sunday.

In Yemen, clashes between the Iran-backed Houthi rebels and forces from the internationally recognized government supported by neighboring Saudi Arabia, have escalated. The Houthis claimed to have struck Saudi Aramco’s Jazan refinery on Sunday, while Saudi authorities reported a fire that was quickly extinguished, with no injuries.

The incident would mark at least the second blaze at the 400,000 barrel-a-day complex in a month. Satellite images in late July showed a tank fire following another claimed Houthi attack.

Sykes writes for Bloomberg.

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Oil prices rise as traders assess US-Iran talks on Strait of Hormuz deal

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Oil prices rose in early trading on Monday as market participants weighed mixed signals from the US and Iran, with concerns that a deal to reopen the Strait of Hormuz could take longer to materialise.


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Futures for international benchmark Brent crude for October delivery gained 1.04% to $84.42 a barrel, while US West Texas Intermediate futures for September advanced 0.83% to $78.83 a barrel.

Iran’s Revolutionary Guards insisted on Sunday that they would not reopen the Strait of Hormuz until the US complied with a list of demands.

Tehran insists on retaining control of the waterway – through which a fifth of world oil and LNG pass – after the war and wants to charge tolls for passage, which Washington has pushed back against.

Attacks in the strait, which was free to transit before the war, led to the collapse of an April ceasefire, and mediators have urged both sides to return to the terms of a subsequent June memorandum that set out a path for peace talks.

Iran on Saturday released a list of conditions for reopening the strait, including an end to the war on all fronts, the lifting of a US counterblockade of Iranian ports, the end of sanctions, the release of frozen assets and compensation for wartime damage, the Tasnim news agency reported.

Those conditions echoed the terms of the June agreement, which included a provision to create a $300 billion reconstruction fund for Iran.

Iran’s Revolutionary Guards said on Sunday that their strategy was to maintain their blockade “until the enemy accepts all our conditions… the strait is now actually a theatre of war for us and not just a waterway”.

For his part, US President Donald Trump said in an interview: “We are low-keying it.”

“We are only semi-negotiating with them,” he was quoted as saying. “We are just watching Iran with its huge inflation and the fact they have no money.”

“It will work out,” he added. “It’s like a chess game.”

Additional sources • AFP

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Iran shakes up security leadership amid talks to open Hormuz Strait

Aug. 9 (UPI) — Iran has replaced its top security official with another commander of its powerful Islamic Revolutionary Guards Corps, a spokesman for Iranian Masoud Pezeshkian said late Sunday.

Mohsen Rezaei, who had been an adviser to Supreme Leader Ayatollah Mojtaba Khamenei, will be the new secretary of the Supreme National Security Council. He replaced Mohammad Bagher Zolghadr, who resigned.

Zolghadr had been in the post since his predecessor, Ali Larijani, was killed in an Israeli air strike in March. He will serve as political adviser to Khamenei.

The shakeup came as Foreign Minister Abbas Araghchi said Iran is not talking directly with the U.S. to end the war with Tehran and open the Strait of Hurmuz, despite claims by U.S. officials that the sides are near a deal.

Araghchi was quoted by the Mehr news agency as saying that “messages are being exchanged through intermediaries” and Iran isn’t talking directly with Washington. He reportedly added Washington must meet conditions by Iran if a deal is reached with Oman to open a trade route through the waterway.

U.S. President Donald Trump told Axios on Sunday his administration is “low keying it” in negotiations with Tehran.

“We are only semi-negotiating with them. We are just watching Iran with its huge inflation and the fact they have no money,” Trump said. “It will work out. It always works out. It’s like a chess game.”

Iran’s Supreme National Security Council and Khamenei would have to agree to any deal to open the strait.

On Saturday, Zolghadr said U.S. forces should be withdrawn from near Iran. He added that the U.S. should compensate Iran for war damages as well as lift sanctions.

Iranian diplomats said earlier last week that Tehran and Oman were near a new agreement to manage the strait.

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UAE says Iran targeted ADNOC tanker in Strait of Hormuz, no casualties | US-Israel war on Iran News

Gulf and Arab governments condemn Iran over missile strike on Emirati tanker.

The United Arab Emirates has accused Iran of striking a tanker owned by the Abu Dhabi National Oil Company (ADNOC) with a missile as it crossed the Strait of Hormuz, drawing swift condemnation from Gulf and Arab governments.

The UAE Ministry of Foreign Affairs said on Saturday that the vessel was hit in the early hours of the morning while transiting the strategic waterway, a chokepoint for a large share of the world’s seaborne oil.

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Abu Dhabi described the strike as an act of piracy by Iran’s Revolutionary Guard Corps (IRGC) and called on Tehran to halt the attacks and reopen the strait fully and unconditionally.

ADNOC confirmed one of its ships had been targeted by a missile while crossing the strait, according to the state news agency WAM. ADNOC did not provide details on any damage to the vessel or its exact location at the time of the attack.

The UAE ministry said using the waterway as a tool for pressure or economic blackmail threatened regional stability and global energy security.

The IRGC have previously threatened action against any vessels transiting the strait if they are linked to Tehran’s adversaries, or if they fail to comply with Iranian directives.

ADNOC said on Friday that it had been significantly affected by what it described as unprovoked attacks on its personnel and assets, while continuing to meet customer requirements in an “exceptionally challenging environment.”

The company said 15 of its vessels had been attacked by missiles and drones while transiting the strait since the start of the conflict, including three this week, killing one crew member and injuring 20 others. ADNOC did not identify those responsible for the attacks in its Friday statement.

Regional governments condemn attack

Gulf Cooperation Council Secretary-General Jassim Mohammed al-Budaiwi condemned the latest attack as a “dangerous and unacceptable escalation”, calling for international action to protect maritime navigation and reaffirming the bloc’s solidarity with the UAE.

Qatar also condemned the attack and rejected the use of the Strait of Hormuz as a bargaining chip, calling for the waterway to be reopened without conditions. Doha’s foreign ministry warned that its continued closure threatened the interests of regional states and the global economy.

Saudi Arabia condemned the targeting of the tanker “in the strongest terms,” saying Iran’s continued attacks constituted a grave breach of international law and Resolution 2817. Riyadh held Tehran responsible for the consequences and demanded an immediate halt to the strikes.

Jordan also condemned the attack as a flagrant violation of international law, affirming its full support for the UAE.

The reported attack marks a sharp escalation in tensions around the Strait of Hormuz, where the UAE and its Gulf neighbours have pressed for the passage to remain open to international shipping.

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Strait of Hormuz tolls would harm livelihoods worldwide, shipowners warn | Shipping News

Eight of the world’s largest shipping associations have urged the United Nations to oppose tolls in the Strait of Hormuz amid reports that Iran and Oman are nearing a deal to manage the critical waterway.

In a letter to UN Secretary-General Antonio Guterres and International Maritime Organization Secretary-General Arsenio Dominguez, the group said that allowing authorities to charge vessels to transit the strait would violate international norms and harm the global economy.

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“Introducing compulsory charges for transit, or service fees that are a toll in all but name, through the Strait of Hormuz would represent a significant departure from established international practice,” the groups representing shipowners and operators said in the letter, which was sent to the UN on Monday but made public on Wednesday.

“Beyond the immediate financial implications for global trade, it would establish a precedent that could undermine the internationally recognised legal framework governing straits used for international navigation and transit passage.”

Internationally recognised rights of navigation should not be “compromised or used as part of broader political negotiations,” the group said, warning that a permanent de facto “toll booth” would lead to higher energy prices, inflation and economic uncertainty.

“Ultimately, these impacts will carry a human cost, affecting livelihoods around the world. It is vital that we continue supporting the preservation of freedom of navigation as the foundation of international maritime governance,” the group said in the letter.

The letter’s eight signatories are the Asian Shipowners Association, the Baltic and International Maritime Council, the Cruise Lines International Association, the European Shipowners Association, the International Chamber of Shipping, the International Association of Dry Cargo Shipowners, the International Association of Independent Tanker Owners and the World Shipping Council.

Dominguez, the head of the UN’s maritime agency, previously told Al Jazeera that imposing fees in the strait would violate international law and set a “very detrimental” precedent for global shipping.

“Countries do not have the right to introduce tolls or payments or charges on these straits,” Dominguez said in April.

Deborah Elms, the head of trade policy at the Hinrich Foundation in Singapore, said the establishment of a permanent toll system would be felt acutely in Asia, which buys the bulk of the Gulf’s energy exports.

“The cost increases from Hormuz disruption can be seen in Asia, particularly in diesel fuel price increases and shortages, in the skyrocketing cost of fertilisers, and in rising costs and shortages of plastics,” Elms told Al Jazeera.

“Much of the oil currently shipped through Hormuz could be rerouted through pipelines, but natural gas remains a problem. This chokepoint is not a major problem for container shipping, but if tolls were applied to other waterways, containers and bulk carriers would be affected much more,” she said.

Iran established a de facto maritime “toll booth” in the strait shortly after the US and Israel launched their war against the country in late February.

Tehran formalised its fee regime with the establishment of the Persian Gulf Strait Authority in May.

Iran’s ability to launch attacks on commercial vessels in the region has granted Tehran effective control over the waterway, giving it powerful leverage in negotiations on ending the war.

Dozens of attacks have been carried out on vessels since the start of the conflict, most of which have been blamed on Iranian forces.

The IMO has confirmed 64 incidents and 17 deaths in the region since the war began.

Shipping across the Gulf continues to be severely disrupted more than five months into the conflict, with at least 6,000 seafarers still stranded in and around the strait as of late July, according to the IMO and UN Human Rights Chief Volker Turk.

In the latest incident on Wednesday, a tanker reported hearing two explosions while transiting the strait, according to the UK Maritime Trade Operations Centre (UKMTO).

Drew Thompson, a senior fellow at the S Rajaratnam School of International Studies in Singapore, said the IMO and other international agencies have limited ability to influence any deal involving Iran, Oman and the US despite their concerns.

“Despite clear interests in maintaining freedom of navigation in international straits, neither the UN, international organisations or shipowners have adequate leverage or ability to affect Iran’s calculus,” Thompson told Al Jazeera.

“President Trump has the means to continue to use violence to coerce a stubborn and resilient Iran, but he has thus far been ambivalent about international law and freedom of navigation, so it is uncertain if he would use his political capital or military force to prevent Iran from extracting tolls on shipping in the strait,” Thompson said.

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Iran, Oman in final stages on Strait of Hormuz deal

Cargo vessels are seen July 21 at one end of the Strait of Hormuz near the coast of Dibba Al Fujairah, United Arab Emirates. Photo by stringer/EPA

Aug. 5 (UPI) — Iran and Oman are in the final stages of a joint agreement to manage commercial shipping in the Strait of Hormuz, agreeing on a route for ships Wednesday, the Iranian foreign ministry said.

However, Iran will not open the strait to traffic until the United States ends its blockade, the ministry said, CBS reported.

Iranian Deputy Foreign Minister Kazem Gharibabadi told state-run media that there is agreement between Iran and Oman on proposed inbound and outbound shipping routes in the strait, CNN reported.

Iran and Oman are on opposite sides of the strait, a major commercial waterway used for much of the world’s oil and gas supplies. They’ve been in negotiations over it for about three weeks. Before the United States and Israel attacked Iran in February, the strait was an open international waterway, but Iran closed it in response to the attacks.

“The geographic coordinates of the route envisioned by both sides have been agreed upon,” said Esmail Baghaei, spokesman for the Iran Foreign Ministry, told the country’s state news agency, as reported by The New York Times. “If certain third parties do not obstruct the process, a joint statement by the two countries,containing the principal considerations and points of agreement, is currently in the final stages of review and drafting.”

U.S. President Donald Trump told reporters there has been a lot of progress on reopening the strait and that it will reopen “soon,” perhaps even as soon as Wednesday or Thursday. However, Gharibabadi denied again that Iran is negotiating in any way over the waterway with the United States, CNN said.

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US stock market hits record high amid hopes for Strait of Hormuz reopening | Financial Markets News

Oil prices fall as US officials tout progress in talks to reopen critical waterway.

The US stock market has hit an all-time high amid growing hopes for a deal to reopen the Strait of Hormuz and a flurry of bumper corporate earnings results.

The S&P 500, the most popular gauge of US stocks, surged 1.8 percent on Tuesday to top 7,700 for the first time, blasting past its previous record of 7,620.90 set on June 2.

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Wall Street’s benchmark index has risen 12.80 percent so far this year, comfortably beating its historical average of about 10.5 percent.

Palantir Technologies, a data analytics company closely tied to the US and Israeli defence sectors, was among the biggest gainers, with its shares soaring 29.5 percent on the back of forecasting-busting second-quarter revenue of $1.94 bn.

The Dow Jones Industrial Average, which tracks 30 blue-chip companies, set a new record for a second straight day, climbing 1.7 percent to 54,085.88.

The rally continued in Asia on Wednesday morning, with key indexes in Japan and South Korea making major gains.

Tokyo’s benchmark Nikkei 225 was up 3 percent as of 01:00 GMT, while the Kospi in Seoul was up 4.6 percent.

Brent crude, the primary international benchmark for oil prices, edged lower after falling about 5 percent overnight on hopes for an end to the months-long disruption to shipping in the Strait of Hormuz, a conduit for about one-fifth of global oil supplies before the start of the US-Israel war on Iran in late February.

Brent futures for October delivery stood at $79.11 per barrel as of 01:00 GMT, down about 13 percent from the previous week.

The growing market optimism came as both US and Iranian officials touted progress in talks between Iran and Oman aimed at restoring shipping in the strait.

US Secretary of State Marco Rubio said on Tuesday that while an agreement had yet to be reached, he hoped that a deal would “happen very ‌shortly”.

US Treasury Secretary Scott Bessent said in an interview with CNBC that an agreement on the strait could be reached as soon as Tuesday or Wednesday.

Iran’s Foreign Ministry spokesperson, Esmaeil Baghaei, said talks with Omani officials on designating safe routes for vessels have been “positive”.

Maritime traffic in the Gulf has been severely constrained since the start of the war amid the threat of Iranian attacks on vessels in and around the strait, as well as a US blockade of Iranian ports.

Just nine vessels transited the critical waterway on Sunday, according to ship-tracking platform MarineTraffic, compared with roughly 130 daily crossings before the start of the war.

The US military said on Tuesday that the strait was “free and open” to all commercial vessels despite Tehran’s repeated insistence that it has the right to control the movement of traffic in the waterway.

“Over the past three months, US forces have assisted more than 1,000 vessels in successfully transiting the strait despite unwarranted Iranian aggression, and these transits continue today,” US Central Command said in a post on social media.

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Iran And Oman Working To Control Strait Of Hormuz, Shaky Ceasefire Still Holding

Iran and Oman are reportedly closing in on a deal that would give the Islamic Republic full control over ships entering the Strait of Hormuz. This comes as a tenuous pause in fighting between the U.S. and Iran enters a sixth day and a day after U.S. President Donald Trump insisted that Iran would fully open the vital chokepoint today or face new and more intense attacks that would include powerplants, other civilian infrastructure and even strikes on leadership. Iran largely closed the Strait after it was hit by the U.S. and Israel on Feb. 28. The American leader is pushing a rekindled effort to find a diplomatic off-ramp to a conflict that has killed 18 American troops, wounded hundreds more, drained U.S. weapons stocks and roiled international relations and global financial markets.

Highlighting the precarious nature of vessel transits through this narrow passage between Iran and the United Arab Emirates (UAE), another ship was struck by Iran overnight as it was leaving the Strait, a maritime security official told TWZ.

The Gulf of Oman, which is the eastern approach to the Strait and the Persian Gulf, is largely controlled by Iran to the north and Oman to the south. Under the emerging agreement between those countries, “vessels heading into the Persian Gulf will transit a channel controlled by Iran, and close to its coast. Ships leaving the Gulf will travel on a channel near Oman,” The New York Times reported.

Both Iran and the U.S. are already following this general traffic pattern, with the U.S. Navy recommending transits close to the Omani coastline and Iran pushing shipping toward its shores. The middle of the Strait has been deemed too hazardous because of the threat primarily from mines. The new plan being pushed by Iran and Oman would expand the use of these traffic patterns. Unless there is some special cutout made in the deal, it could require the U.S. Navy to seek permission to enter the Persian Gulf and then have to make the transit deep in Iranian waters, giving American warships degraded defensive options and putting them in the heart of Iran’s weapons engagement envelope.

Strait of Hormuz (Google Earth)

While Iranian officials say that they won’t impose tolls, the accord does include a charge for service fees to cover the environmental impact of the shipping, security for the cargo ships and tankers, and staffing, the publication added. Revenues would be divided equally between Iran and Oman, two Iranian officials told the Times.

Reuters reported on Tuesday that “Tehran ​is unlikely to change its position,” because it has already shown flexibility by moving from its initial position of seeking full control over ​traffic in both directions in the strait.

But a U.S. official familiar with the negotiations told the Times on Monday that the Iranian account was “not accurate,” and said that any “temporary” routes established through the strait would not involve approvals or permissions by Iran, and would involve no tolls.

If this sounds familiar, there is good reason. We wrote about a similar scheme that was floated by Iran and Oman back in May. And, just like now, it came during a lull in fighting and as Trump insisted the Strait be open for all with no fees for transit.

Regardless of the plans for the Strait being discussed by Iran and Oman, the Trump administration on Tuesday said it could soon work out a deal with Iran on the matter.

“We are in talks with the Iranians,” Treasury Secretary Scott Bessent told CNBC’s “Squawk Box.” “There is a chance we may have a deal today or tomorrow to open the Strait and move towards a more normalized position in this conflict.”

“It would be freedom of movement,” the Treasury Secretary said when asked whether Iran would be allowed to charge a toll.

All this follows Trump’s claims on Monday that talks with Iran were ongoing and that he is giving Tehran a “last chance” before ordering new strikes. Iranian officials, however, vociferously denied Trump’s claim and said they are prepared to fight.

“We’re talking, and we’re talking at the request of Iran, backed by Saudi Arabia, backed by UAE and backed by Qatar in particular, but others also,” Trump told reporters Monday at the White House. “They all wanted to give this a last chance. This is a last chance. This is not something that if it doesn’t happen. This is the last chance for them.”

On Sunday, Trump stated that he called off a major attack on Iran to give diplomacy another chance to work. Asked Monday what his message to the American people is now that he has called off strikes at least five times, Trump replied: “Well, you don’t know, I don’t know, I think we’re going to maybe get something. But I want to give them every last chance before decapitation. Very tough to do what we have planned, still planned. We’ll see what happens.”

Hours before Trump spoke at the White House, Iranians dismissed both the notion of ongoing talks and U.S. control of the Strait.

“We currently have no negotiations with the United States,” Foreign Ministry Spokesperson Esmail Baqaei told reporters, according to the official Iranian Fars news agency. “Instead, we are working, in consultation with Oman, to determine a route for vessel traffic through the Strait of Hormuz at the earliest opportunity. This arrangement is naturally temporary and is intended to ensure the safety of navigation in the Strait of Hormuz.”

Responding to claims that Pakistani and Qatari representatives were involved in negotiations with the United States, Baqaei said, “I am not aware of any such matter. We are neither expecting to host a delegation in the coming days nor planning to send one abroad.”

The Iranians appear to be coalescing around hardliners from the Islamic Revolutionary Guard Corps. One Israeli journalist suggested that Supreme Leader “Mojtaba Khamenei has given IRGC Commander Ahmad Vahidi the final say on all key decisions regarding the United States.”

This is an outcome we predicted before Epic Fury was launched.

As we noted earlier in this piece, amid debate over control of the Strait, Iran struck the Liberian-flagged bulk carrier Minoan Pioneer with an unknown projectile near the Oman coast, a maritime security official told us.

The United Kingdom Maritime Trade Operations center (UKMTO) stated on X that it “received a military-source report of a mayday from a vessel. A second vessel relayed that the first vessel was struck by an unknown projectile in its engine room and crew accommodations.”

“One crew member was reported missing and the remaining crew evacuated safely, UKMTO added. “A fire was reported, the vessel lost power and required assistance. The vessel was last reported at anchor. UKMTO has been unable to contact the vessel.”

Meanwhile, United States Central Command (CENTCOM) still enforces a blockade of Iranian ports, an operation that remains a sticking point in the negotiation process.

“As of Aug. 3, CENTCOM has redirected 44 commercial vessels, disabled 2, and boarded 2,” the command stated on X Monday afternoon.

As the U.S. continues to maintain a large presence in the region, another report emerged highlighting the immense expenditure of munitions during this conflict.

The U.S. Army has “used up much of its stockpile of highly accurate long-range missiles” since Epic Fury was launched on Feb. 28, Reuters reported, citing three people familiar with the data.

The missiles are principally the Army’s surface-to-surface weapons, known as Army Tactical Missile Systems (ATACMS) and Precision Strike Missiles (PrSM). The U.S. has used “virtually all” of these weapons, according to two of the sources. The sources all declined to say how many of each munition the U.S. ​had left.

Supply figures on ATACMS and PrSMs “circulated inside the federal government over the last week during tense conversations inside the Trump administration about how much longer the U.S. can continue striking Iran without drawing down the stockpile to levels that would ⁠limit the military’s ability to respond to crises elsewhere,” Reuters added.

Several days earlier, “the top U.S. general in Europe privately warned the Pentagon…that he lacks sufficient naval forces to continue protecting Israel from incoming ballistic missiles,” The Washington Post reported.

Gen. Alexus Grynkewich, the head of U.S. European Command, “sent written notification to senior Pentagon officials saying that without another Navy destroyer he will be forced to choose defense of the United States ‘homeland’ over that of Israel, said the officials,” the Post stated. “A U.S. defense official said Grynkewich’s notification appears consistent with past outreach to the Pentagon from the military’s top generals when they see certain risks that require Washington’s consideration. This can occur, the official said, as commanders compete for finite resources and weapons.”

The depletion of ATACMS and PrSMs and Grynkewich’s notification come amid growing concerns over the supply of munitions, especially air defense interceptors. The lack of sufficient magazine depth is an issue that TWZ has raised frequently for years, and especially in regard to America’s air and missile defenses, in particular. In fact, we laid out in detail these exact concerns and how they would be a major issue in war with Iran just prior to the conflict starting in a feature you can read in full here.

Meanwhile, fighting between the Iranian-backed Houthi rebels of Yemen and Saudi Arabia continues.

The Houthis, who have already struck Saudi ships and refineries after imposing a blockade on the Bab al-Mandab Strait (BAM), on Tuesday said they struck Najran Airport using a drone.

“This targeting comes in response to the Saudi enemy’s violation of the airspace in the provinces of Saada and Hajjah using its drones,” Houthi spokesman Yahya Saree claimed on X. “We affirm to the Saudi enemy that any violation of our airspace will not go unpunished or without retaliation.”

There was no immediate confirmation about the attack from the Saudis. The Houthis often exaggerate or make up claims and TWZ cannot independently verify this one.

However, Saudi ship transits through the BAM are now almost non-existent since the Houthis imposed their blockade, according to the Windward maritime intelligence firm.

“Crossings fell to a lower baseline after the July 20 Houthi threat announcement, driven almost entirely by the collapse in Saudi-linked traffic,” Windward noted on X. “Non-Saudi vessels have held steady for two weeks at an average of 37 crossings per day — roughly 22% below pre-announcement levels. Saudi-linked crossings dropped to just 0.86 per day last week, the lowest recorded so far, with zero crossings on three of the seven days.” The threat “is functioning as a selective pressure on Riyadh’s Red Sea export route rather than a blanket corridor shutdown,” Windward added. “This matters because Saudi Arabia had already shifted significant volumes to Yanbu and the Red Sea to bypass Hormuz. That alternative is now under direct commercial strain.”

As we have frequently detailed, a Houthi blockade of the BAM threatens to add far greater pressure on oil exports from the Middle East, already drastically affected by the Iranian closure of the Strait of Hormuz and the resumption of the U.S. blockade on Iranian ports. Asia in particular relies on these shipments. The Yemeni rebel group has expanded its target set, hitting oil terminals and infrastructure Saudi Arabia is using to pump supplies to tankers in the Red Sea. The kingdom has diverted millions of barrels of oil per day through pipelines to its Yanbu port on the Red Sea in an effort to minimize the energy shortages due to the hostilities in the Persian Gulf. Even with the BAM closed, oil exports could still head to the West, via the Suez Canal.

But if the infrastructure used to convey these energy products is put out of action, the consequences could be even more severe, with far less or even no energy supplies from Saudi Arabia moving out of the Red Sea. The closing of the BAM also raised the specter of the U.S. having to get as involved as it did during the previous Houthi campaign against shipping that ended last September, which could pull resources away from Iranian-focused operations.

Though there is conflict in two regions of the Middle East, an expansion to Ukraine appears to have been avoided.

Major General Mohsen Rezaei, military adviser to Iran’s Supreme Leader, claimed on Monday that Tehran was prepared to launch a strike against Ukraine in retaliation for a Ukrainian attack on an Iranian ship in the Caspian Sea last month.

However, that was called off after Ukraine apologized, Rezaei reportedly claimed.

The situation dates back to July 26, when Ukrainian President Volodymyr Zelenskyy reported a successful long-range strike on a ship in the Caspian Sea that, according to him, was being used to transport military cargo to Russia. Iran accused Ukraine of attacking a civilian vessel in the Caspian Sea, claiming that one sailor was killed and another wounded.

That’s it for now. We’ll update this story when new details emerge.

Contact the author: howard@twz.com

Howard is a Senior Staff Writer for TWZ. He writes frequently about conflict, focusing heavily on the Middle East and Ukraine, and interviews with military and intelligence officials and industry leaders from around the globe. He lives near Tampa, Florida, home of U.S. Central Command, U.S. Special Operations Command.




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Oil prices fall on hopes Strait of Hormuz could reopen

Oil prices fell to a three-week low on Tuesday as senior US officials raised hopes of a deal with Iran to reopen the key Strait of Hormuz waterway.

US Secretary of State Marco Rubio and Treasury Secretary Scott Bessent both announced talks had progressed to allow shipments to potentially resume as soon as this week.

The cost of a barrel of brent crude, the global benchmark for oil prices, fell by almost 5% to under $80 on the news of supply disruptions potentially being eased.

But the failure of previous negotiations in recent months to de-escalate the conflict between the US and Iran has led to a volatile oil market, with drivers ultimately being hit by higher fuel prices at the pumps.

On Tuesday, along with the drop in Brent crude, US West Texas Intermediate prices were down more than 5%, to $76 a barrel. Both contracts dropped to their lowest levels since 13 July.

US Secretary of State Marco Rubio said there had been progress made in discussions on getting more ships through the Strait with Iran and Oman.

“There’s been progress made in those talks, but not finality yet. We’re hoping that will happen very shortly,” he told reporters at the State Department.

Bessent said a deal to reopen the Strait of Hormuz could be agreed as soon as Tuesday or Wednesday.

There was a “chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict,” he told CNBC.

“It would be freedom of movement,” he added, when asked whether Iran would be allowed to charge for ships passing through.

While senior figures in the US government have announced talks have been progressing, no details of what a potential deal may look like have been released.

The Strait of Hormuz has been a central point in negotiations between the US and Iran. Before the conflict began in late February, the waterway handled about one-fifth of global daily oil and liquefied natural gas supplies.

The disruption has sent prices at the pumps up across the world. In the UK petrol prices are now at levels seen at the start of the conflict, with the average cost of a litre of petrol hitting £1.60, according to the RAC motoring group.

In the US, gasoline prices are on average above $4 a gallon, according to the AAA. Diesel is almost $5.40 a gallon.

Qatar, which is one of the key mediators between Washington and Tehran, said it was continuing efforts with other mediators to try to achieve a diplomatic resolution to the war, but admitted no direct talks were currently planned.

On Monday, President Donald Trump warned Iran faced its “last chance” to agree a deal to allow commercial shipping to resume in the Strait.

He said he had called off “massive” strikes on the country for talks to resume.

But Iran has said it was not negotiating with the US – and had no plans to do so – and is instead talking to Oman.

US stock markets were trading higher on Tuesday following news of the negotiations lowering oil prices and also in response to corporate results related to Artificial Intelligence.

Investors have experienced jitters on Wall Street as results from Big Tech firms indicate spending on the technology is set to continue to soar.

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Iran says negotiations with Oman over Strait of Hormuz in final stages | US-Israel war on Iran News

Iran’s foreign minister says negotiations with Oman on the Strait of Hormuz are entering their “final stages”, as Tehran insists the vital waterway will never return to its pre-war status.

In a post on Telegram on Sunday, Abbas Araghchi said that in a report he presented to the cabinet, he described the negotiations between Tehran and Muscat as “on the way to being finalised”.

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Foreign Ministry spokesman, Esmail Baghaei, said that Tehran and Muscat were close to reaching a deal on a new maritime route through Hormuz, separate from existing corridors.

“We are now going to reach an understanding on a route acceptable to both sides – neither the northern route nor the southern route – but one that respects the sovereign rights of both sides and safeguards our national interests and security,” Baghaei said in an interview with state television.

Muscat did not immediately comment on the matter.

Both Iran’s and Oman’s territorial waters border the Strait of Hormuz, the key waterway through which about 20 percent of global oil consumption is normally shipped.

Details of the new route were not immediately clear, but Iran has effectively maintained control over the strait since the outbreak of war. On February 28 , the US and Israel launched strikes aimed at destroying Iran’s missile programme, preventing a nuclear weapon and cutting off support for allied armed groups.

A June ceasefire collapsed within weeks in a dispute over shipping routes through Hormuz and fighting reignited in July.

Baghaei earlier said “an understanding between Iran and Oman on a new route has nothing to do with whether the Strait of Hormuz is reopened or remains closed”. He blamed the US for the closure and accused Washington of breaching its commitments, according to Iran’s Fars news outlet.

“The strait was closed because of the United States’ breach of its commitments, its naval blockade of Iran and all the hostile measures that the United States has taken against the Islamic Republic of Iran during this period,” he said.

Hassam Ghashghavi, spokesman for the Iranian parliament’s national security commission, said on Sunday that mediators were trying to revive the June memorandum of understanding with the US, and were aware that Hormuz remained the central issue, Iranian news outlet SNN reported.

Ghashghavi said it was possible that an Iranian delegation would travel to Muscat again as part of ongoing diplomacy. “This is the nature of diplomacy and this exchange of views continues regularly,” he said.

Two-sided messaging

The comments come after US President Donald Trump said early on Sunday that the US and Israel had agreed to halt new attacks on Iran, provided a deal to end the months-long conflict is reached “rapidly”.

Trump posted on Truth Social that the US was “locked and loaded and ready to go against the Islamic Republic of Iran”, but Tehran and other Middle Eastern countries asked him to hold off on new attacks.

“Based on this request, I have agreed, for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL.”

Trump said the deal “would include the Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT, and an end to Iran’s nuclear threat”.

“The Country of Israel joins me in this commitment. Get to work, everybody, and get it DONE,” he wrote.

Saudi Arabia’s Crown Prince, Mohammed bin Salman, (MBS) spoke to Trump by phone on Saturday, urging him to “prioritise dialogue” and “reduce escalation”, the Saudi Press Agency reported.

US news website Axios reported that MBS expressed concern over Trump’s plans for large, new attacks against Iran and reportedly urged him to refrain.

“We know that, in a larger context, Iran is habituated to dancing to the same old tune, as it is receiving this oscillating rhetoric from the US president about the possibility of another round of confrontation on the one hand, [while also hearing] statements about these talks going well and that a potential deal is within reach,” said Al Jazeera’s Tohid Asadi, reporting from Tehran.

“In that regard, we know that the Iranian side, at the same time, is responding with the same two-sided message, saying that the road for diplomacy is open on the one hand, [while also maintaining] full preparation for another round,” he added.

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Iran and Oman exchange proposals to manage Strait of Hormuz | US-Israel war on Iran News

Oman’s proposal is based on the Strait of Malacca in East Asia, a model whereby ships that use the strait provide voluntary fees.

Iran and Oman have exchanged proposals regarding the future management of the Strait of Hormuz, as points of contention continue to exist between the two nations whose territorial waters border the strategic waterway.

Oman presented a proposal to Iran ⁠for ⁠a joint regional mechanism to manage the Strait of Hormuz with “voluntary fees”, Reuters reported on Tuesday. Under the Omani proposal, which reportedly has regional backing, Iran would not exercise sole control ⁠of the strait, an unnamed Gulf source and Western diplomat ⁠told the news agency.

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Oman’s proposal is reportedly based on the Strait of Malacca, which connects the Indian and Pacific Oceans. There, Indonesia, Malaysia and Singapore ask ships that use the strait to voluntarily contribute to fund navigation, environmental protection, and ‌search-and-rescue operations.

This proposal aims to contribute to ending the global disruption to trade caused by the strait’s closure in the US-Israeli war on Iran. Tehran, however, says the strait ⁠cannot go back to its pre-war status where shipping flowed freely,

In comments to Iranian state media on Tuesday, Kazem Gharibabadi, the country’s deputy foreign minister for legal and international affairs, said Tehran rejects an Omani proposal for an equal division of transit routes between the two countries, as such a plan does not address Tehran’s security concerns.

Gharibabadi said that Tehran proposed to Oman that Iran would manage shipping through its side of ‌the strait and Muscat would manage part but not all of the opposite lane.

He added that Tehran has “no plans to negotiate with the US”, but affirmed talks are proceeding “step by step” with Oman, warning that Tehran will consider “any action” to maintain control over the strait, including the resumption of war.

“The Omanis are now suggesting three lines for the maritime traffic: one that runs through Iran’s territorial waters, an international one, and one through Omani territorial waters,” said Al Jazeera’s Resul Serdar, reporting from Tehran. “Despite public statements, our sources tell us Iran is demonstrating some flexibility.”

Al Jazeera’s Tohid Asadi, also reporting from Tehran, said there remain many “points of contention” between Oman and Iran on Hormuz. These include the trajectory of the ships, the fees, the question of who will define the arrangements, and mine clearances – which will reportedly be Iran’s responsibility.

Paul Musgrave, a professor at Georgetown University in Qatar, said Oman’s proposal to Iran to get the Strait of Hormuz running again is positive, but it remains to be seen if hardliners in Iran will go for it.

Musgrave noted that under the Strait of Malacca model, voluntary contributions raise about $70m annually, far from the $1m per ship that’s reportedly been proposed by Tehran as a “service fee” in the Strait of Hormuz.

Meanwhile, Gulf Cooperation Council (GCC) foreign ministers met via video call on Tuesday to discuss the latest developments in the conflict, including ways to improve cooperation on issues surrounding freedom and navigation through the waterway, a statement from the Qatari Foreign Ministry said.

The United States suspended a nearly two-week-long campaign of air strikes against Iran over the weekend after pressure from regional mediators to find a diplomatic solution and to return to the memorandum of understanding signed in June, which would allow shipping to resume in the Strait of Hormuz. The strait carried one-fifth of global energy supplies before ⁠the February 28 start of the US-Israel war on Iran.

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War escalates, oil prices surge as Iran-backed Houthis strike Saudi tankers in Red Sea

The U.S. war with Iran escalated again Thursday as Iran-backed Houthis in Yemen attacked two Saudi Araian oil tankers in the Red Sea, causing global oil prices to surge amid fears of yet another vital energy corridor being choked off by the conflict.

The attacks came after the Trump administration threatened additional strikes on Iran’s nuclear infrastructure while pushing a new deal to help Saudi Arabia develop a nuclear energy program of its own. Also Thursday, four Republicans in the U.S. House joined Democrats in a vote to halt the American military campaign absent congressional approval. Senate Republicans blocked a similar measure.

The price of oil hit $100 a barrel for the first time since May, increasing the financial pressure on Americans at the gas pump and the political pressure on President Trump to end a war he promised would last weeks but has persisted for months. At least 18 U.S. service members have died in the war.

The Houthis, who control the populous northwest of Yemen, receive arms and training from Tehran but had remained largely on the sidelines since the U.S. and Israel launched the war. Their latest strikes complicate already fraught negotiations between the U.S. and Iran after the collapse of a ceasefire this month amid renewed hostilities in the Strait of Hormuz, the other major energy passageway choked by the conflict.

The Houthis had this week announced a naval blockade of Saudi ships in the Red Sea, which stretches along Saudi Arabia’s western flank. That blockade centered on the Bab al Mandeb strait, the only southbound route for Saudi tankers headed to Asian markets.

Tanker traffic has already been heavily diminished in the Persian Gulf along Saudi Arabia’s northeast flank and between it and Iran, because of Iran’s threats to vessels traveling through the Strait of Hormuz. Saudi Arabia had diverted its oil exports to its Red Sea ports and out the Bab al Mandeb, dispatching some 4.5 million barrels via that route per day.

In a social media post Thursday, Trump said that if the Houthis continue attacking ships in the Red Sea, the U.S. “will hold Iran responsible” because the Houthis are an Iranian proxy, and inflict “major military punishment” on the Houthis and Iran.

He said he was “very disappointed” in the Houthis, “in that they have, until now, acted very professionally and smart” amid the Iran war.

At a later event Thursday, Trump said the U.S. is “doing extremely well” against Iran, which he accused of having “evil intentions.”

Democrats in the House and Senate cited the war’s spread to the Red Sea as yet another reason that Congress should act to pass a war powers measure to halt the president’s military campaign. Sen. Chris Van Hollen (D-Md.), who led the unsuccessful effort in the Senate, cited the expansion while recalling how Trump had claimed victory in Iran as far back as March.

“If we won back in March, why are more Americans getting killed in July? If we won back in March, why is the Strait of Hormuz closed? If we won back in March, why is the war expanding as Houthis attack ships transiting the Bab al Mandeb strait in the Red Sea? If we won back in March, why are oil and gas prices and diesel prices shooting through the roof again, imposing costs on every American family?” Van Hollen said. “Is that their definition of winning?”

The Houthis’ military spokesman, Yahya al-Sarea, said the group’s forces conducted “a qualitative military operation” targeting two Saudi oil tankers with missiles and drones for what he said were violations of the Houthis’ blockade on the Red Sea.

The Houthis have accused Saudi Arabia of imposing a blockade on airports and seaports in northwestern Yemen, where most of the country’s population lives and which the Houthis otherwise control. They also blamed Saudi Arabia for an attack this month on Sanaa’s airport to prevent the landing of a plane carrying a Houthi delegation returning from the funeral of Iranian Supreme Leader Ali Khamenei, who was killed at the start of the war.

Al-Sarea said that in addition to striking the two tankers, the Houthis forced 10 other ships to turn back from their passage, will “continue their naval operations against the Saudi enemy” and will “continue imposing the equation of blockade against blockade.”

The escalation of the war — and the shock wave it sent through global energy markets — added to regional uncertainty already being stoked by the Trump administration’s announcement Wednesday that it had agreed to work with Saudi Arabia to develop a civilian nuclear program.

That announcement, after years of U.S. attempts to block nuclear proliferation in the Middle East, sparked widespread concern in Washington, where lawmakers will vote on the deal, and in Israel, which has long feared a nuclear arms race in the region.

Trump administration officials said the deal would “uphold the highest standards of nuclear safety and nonproliferation,” with American firms developing the program. But they provided few details, and questions immediately arose about the absence of clear inspection protocols or any requirement that Saudi Arabia first normalize diplomatic relations with Israel.

On Thursday, Trump said the deal would be conditioned on Saudi Arabia joining the Abraham Accords and establishing diplomatic ties with Israel. White House Press Secretary Karoline Leavitt later said that Trump had not talked to Saudi leaders since making that condition public, but that they would have to agree to it or “the deal is off.”

Leavitt said that Trump had raised the matter with Saudi leaders in the past, and that it is something Trump “feels very strongly about.”

Asked whether Israel pressured the president to impose the condition, Leavitt said, “Not to my knowledge.”

Earlier this week, Defense Secretary Pete Hegseth told Congress that the Iran war has already cost the U.S. $37.5 billion. House Republicans on Wednesday pushed through a $1.15-trillion defense policy bill to fund the war moving forward. Most Democrats voted against the measure in protest of the war, and it faces stiff opposition in the Senate.

Trump in recent days has tried to deny polls showing plummeting support for the war among Americans. On Wednesday, before attending the dignified transfer of the bodies of U.S. service members killed in the war to Dover Air Force Base in Delaware, Trump claimed Americans don’t want high gas prices but “aren’t against the war.”

On Tuesday, Trump posted statistics showing that more U.S. service members died in past wars, which Democrats denounced as disrespectful to those killed in the current conflict.

The Houthis seized control of the Yemeni capital in 2014, along with much of Yemen’s populous northwest. Their advance triggered a devastating Saudi-led campaign to dislodge them. Since 2022, the two sides have been in a stalemate, though tensions have been rising again in recent months.

Mohammed al-Basha, founder of the Basha Report, a U.S. risk advisory firm focused on the Middle East and Africa, said the Houthis’ latest escalation comes as their influence is growing because of the increased importance of Bab al Mandeb while the Strait of Hormuz is choked off by Iran.

“This is their moment, because with everything happening in the Strait of Hormuz, Bab al Mandeb quadrupled in importance. By exerting maximum pressure in this period, they can maximize the effect of any kinetic action they’re trying to do,” Al-Basha said.

“Their narrative is very aggressive. They want war. And they feel that because they want war and sense that the U.S. and Saudi Arabia don’t, that they will submit to their demands.”

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