Amid heightened tensions in the Strait of Hormuz and disruptions to shipping movement, two tankers carrying crude oil have successfully arrived at Mumbai port. According to industry sources, these are among the first non-Iranian vessels to transit the Strait of Hormuz since the conflict escalated.
The tankers reportedly switched off their Automatic Identification System (AIS) and transponders while passing through the Strait of Hormuz to ensure safer transit amid rising attacks and security risks in the region. Industry sources said the first tanker, ‘Shenlong’, which loaded crude from Saudi Arabia’s Ras Tanura export terminal on March 1, arrived in Mumbai on March 10. The vessel carried around 2 million barrels of crude oil, loaded as Basra crude, one of Iraq’s primary export grades.
Meanwhile, the Indian government has said that 28 vessels remain stranded around the Strait of Hormuz due to the ongoing security situation. According to the ministry, 24 vessels carrying 677 seafarers are stuck west of the strait in the Persian Gulf, while four vessels with 101 seafarers are stranded east of the strait in the Gulf of Oman or the Arabian Sea.
It was reported that Iran would allow Indian-flagged tankers to transit the Strait of Hormuz after Indian foreign minister S Jaishankar spoke to his counterpart in Iran. However, reports remain conflicting, as an Iranian source outside the country denied that any such agreement had been finalised. The strait is a critical route for India, through which about 40% of the country’s crude oil imports pass.
Meanwhile, crude oil prices again climbed close to $100 a barrel on Thursday, despite the International Energy Agency’s (IEA) decision to release 400 million barrels from strategic reserves to stabilise the market.
This marks the second time in a week that Brent crude has approached the $100 level, after surging to a peak of $119 per barrel earlier in the week. At around 8:43 PM IST, Brent crude was trading at $100.5 per barrel.
Prices jumped after two oil tankers were attacked in Iraqi waters, forcing the suspension of operations at an oil export terminal in the country. Iraq is one of the world’s major oil exporters and has been India’s second-largest crude supplier in recent years.
Iran also warned on Wednesday that oil prices could surge to as high as $200 per barrel if tensions in the region continue to escalate and attacks on merchant vessels intensify.