At least three Indian oil refiners and a global energy company are set to avoid using vessels on Iran’s newly issued blacklist, which includes restrictions on ship-to-ship (STS) transfers, due to security concerns. Iran recently identified 45 ships it claims violated its regulations in the Strait of Hormuz, threatening penalties against vessels involved in transfers with these ships. This move escalates tensions in a vital waterway for global energy, especially amid ongoing U.S.-Israeli conflicts with Iran.
The blacklist aims to disrupt oil shuttle runs operated by Gulf producers like Saudi Arabia and the UAE, which have been crucial for maintaining oil flows from the Middle East. The Persian Gulf Strait Authority, established by Iran, warned that blacklisted vessels could face fines, detention, and cargo confiscation. Sources indicate that charterers are contemplating whether to continue STS operations, with some preferring to procure oil delivered directly to final destinations to mitigate risks.
Trade analysts suggest that while compliance-sensitive buyers may steer clear of the blacklisted vessels, trade is likely to adapt by rerouting through alternative channels rather than ceasing entirely. The situation highlights the growing complexities and risks associated with oil transportation in the region.
