Tanker traffic through Strait of Hormuz has virtually stopped — Rystad

World July 08, 17:49

According to head of geopolitical analysis at the consulting firm Jorge Leon, the real test comes after 9 July, once the mourning period for late Iranian Supreme Leader Ali Khamenei ends

LONDON, July 8. /TASS/. Oil tanker traffic through the Strait of Hormuz has essentially stopped, and it is becoming clear how events will develop after July 9, Jorge Leon, head of geopolitical analysis at the consulting firm Rystad Energy, said in a statement sent to TASS.

He said the new halt in shipping through this important maritime corridor "tells you more about risk perception right now than any statement from Washington or Tehran "

"Brent's climb to its highest level since 19 June shows how quickly the market is pricing in a ceasefire the US president [Donald Trump] himself says is over. The real test comes after 9 July, once the mourning period [for late Iranian Supreme Leader Ali Khamenei] ends and both sides show whether there is still an appetite for a diplomatic off-ramp," Leon said.

On July 7, it was reported that the Qatari tanker Al Rekayyat, carrying liquefied natural gas (LNG), and a Saudi oil tanker had been fired upon in the Strait of Hormuz. Earlier, the Iranian broadcaster IRIB reported that the Qatari vessel had attempted to transit the strait with the support of the US Navy. According to the report, the tanker "was targeted after ignoring repeated warnings."

Following these events, Trump declared at a meeting with NATO Secretary General Mark Rutte on the sidelines of the Ankara summit that the ceasefire with Iran no longer valid. He added that he had no intention of negotiating with Iran and insulted the Islamic Republic's leadership. Prior to this, US Central Command (CENTCOM) announced a series of powerful strikes against Iran in response to the Islamic Republic's attacks on three vessels in the Strait of Hormuz. In response, the Iranian Armed Forces' Khatam al-Anbiya Central Command stated that it would respond to US aggression and would not allow interference in the management of the Strait of Hormuz.

Read more on the site →