The Israel-Hamas battle has raised the spectre of a wider regional battle which might embroil Iran and different regional factions.
Analysts and market observers say the battle might immediate the US to tighten sanctions on Iran, which can spur Tehran to take retaliatory motion towards ships within the Strait in Hormuz.
The Marshall Islands registry, one of many world’s prime delivery flags, final week flagged that vessels with hyperlinks to Israel or the US could face a heightened risk of assault inside Israeli territorial waters, the Mideast Gulf, Strait of Hormuz, Gulf of Oman and Pink Sea areas.
Under are particulars concerning the Strait:
WHAT IS THE STRAIT OF HORMUZ?
The strait lies between Oman and Iran.
It hyperlinks the Gulf north of it with the Gulf of Oman to the south and the Arabian Sea past.
It’s 21 miles (33 km) vast at its narrowest level, with the delivery lane simply two miles (three km) vast in both path.
The United Arab Emirates and Saudi Arabia have sought to search out different routes to bypass the Strait, together with constructing extra oil pipelines.
© Peter Hermes Furian / Adobe Inventory
WHY DOES IT MATTER?
A few fifth of the amount of the world’s complete oil consumption passes by means of the Strait each day. A median of 20.5 million barrels per day (bpd) of crude oil, condensate and oil merchandise handed by means of Hormuz in January-September 2023, information from analytics agency Vortexa confirmed.
OPEC members Saudi Arabia, Iran, the UAE, Kuwait and Iraq export most of their crude by way of the Strait.
Qatar, the world’s largest liquefied pure fuel (LNG) exporter, sends virtually all of its LNG by means of the Strait.
Some 80 million metric tons, or 20% of worldwide LNG flows undergo the Strait yearly, Vortexa mentioned.
“If the battle broadens to incorporate the closure of the Strait of Hormuz —the world’s busiest oil-shipping channel— it will shut down the area’s oil commerce, supercharging oil costs,” JP Morgan mentioned in a be aware this week.
“Crucially, whereas Iran has threatened through the years to dam the strait, it had by no means adopted by means of,” the financial institution added.
IMPACT OF U.S. SANCTIONS
America has imposed sanctions on Iran aimed toward halting its oil exports.
Iran has threatened to disrupt oil shipments by means of the Strait of Hormuz if the US tries to strangle its financial system.
The U.S. Fifth Fleet, primarily based in Bahrain, is tasked with defending business delivery within the space.
RISING TENSIONS
The Israeli military is readying for a floor invasion with the goal of annihilating Hamas, elevating the chance of a wider battle.
Iranian Overseas Minister Hossein Amirabdollahian on Oct. 18 known as on Muslim international locations to impose an oil embargo and different sanctions on Israel, however OPEC sources dismissed such a situation.
In 1973, Arab producers led by Saudi Arabia slapped an oil embargo on Western supporters of Israel in its battle with Egypt, focusing on Canada, Japan, the Netherlands, Britain and the US.
Whereas Western international locations had been the principle consumers of crude produced by the Arab international locations on the time, these days Asia is the principle purchaser of OPEC’s crude.
PAST INCIDENTS
In the course of the 1980-1988 Iran-Iraq battle, the 2 sides sought to disrupt one another’s oil exports in what was often known as the Tanker Warfare.
In July 1988, the U.S. warship Vincennes shot down an Iranian airliner, killing all 290 aboard, in what Washington mentioned was an accident and Tehran mentioned was a deliberate assault.
In early 2008, the US mentioned Iranian vessels threatened three U.S. Navy ships within the Strait.
In July 2010, Japanese oil tanker M Star was attacked within the Strait by a militant group known as Abdullah Azzam Brigades linked to al Qaeda claiming duty.
In January 2012, Iran threatened to dam the Strait in retaliation for U.S. and European sanctions that focused its oil income in an try and cease Tehran’s nuclear programme.
In Might 2015, Iranian ships seized a container ship within the Strait and fired pictures at a Singapore-flagged tanker which it mentioned had broken an Iranian oil platform.
In July 2018, President Hassan Rouhani hinted Iran might disrupt oil commerce by means of the Strait in response to U.S. calls to scale back Iran’s oil exports to zero.
In Might 2019, 4 vessels – together with two Saudi oil tankers – had been attacked off the UAE coast close to Fujairah, one of many world’s largest bunkering hubs, simply outdoors the Strait of Hormuz.
In January 2021, Iran seized a South Korean-flagged tanker in Gulf waters and detained its crew.
In December 2022, the U.S. army mentioned that an Islamic Revolutionary Guard Corps Navy boat got here inside 150 yards of American warships within the Strait.
In Might 2023, Iran seized two oil tankers whereas passing by means of the Strait.
In July 2023, the U.S. Navy mentioned it had intervened to forestall Iran from seizing two business tankers within the Gulf of Oman. A Navy assertion mentioned that since 2021, Iran had “harassed, attacked or seized practically 20 internationally flagged service provider vessels”.
(Reuters – Reporting by Ahmad Ghaddar; Modifying by Susan Fenton)
