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Recent reports indicate that Iran intends to disrupt operations in the Strait of Hormuz, Dryad Global stated in its latest Maritime Security Threat Advisory (MSTA), which was released on April 22.
“The most recent incident, the seizure of the MSC Aries, demonstrates that Iran, despite being preoccupied with missile operations against Israel, continues to interdict and control vessel movement in the Strait of Hormuz, Persian Gulf, and Arabian Sea,” Dryad noted in the MSTA.
“While Iran has repeatedly stated that it has the capability to shut down the choke point, doing so has appeared unfavorable because it would enrage its neighboring Arab nations,” it added.
In the MSTA, Dryad said Iran’s most recent missile attack on Israel “was more theatrical than genuine military operations, knowing that Israel’s defense systems could easily defeat its drone and missile barrage”.
“Iran is likely to intensify its operations in more easily controlled territory, such as the Strait of Hormuz, posing a significant threat to Israeli and NATO-affiliated commercial vessels,” it added.
In a release sent to Rigzone earlier this month, Xeneta, which describes itself as the leading ocean freight rate benchmarking and intelligence platform, said the seizure of a container ship by Iran in the Strait of Hormuz on April 13 “is extremely concerning and threatens to put trade lanes in the Middle East at risk”.
“It has been reported that the MSC Aries was seized by Iran Revolutionary Guards 50 nautical miles (92km) northeast of Fujairah, an area close to the Strait of Hormuz that forms the entrance to the Arabian Gulf,” Xeneta noted in the release.
“The latest incident follows ongoing conflict in the Red Sea region – the gateway to the Suez Canal – which has seen ocean freight container ships avoiding the area due to missile attacks by Houthi militia,” it added.
Peter Sand, a Chief Analyst at Xeneta, said in the release, “an already bad situation in the Red Sea and Gulf of Aden has just got worse and could put ocean freight container imports and oil exports in the Middle East at risk”.
On its site, Dryad describes the Strait of Hormuz as a narrow 21 mile wide channel separating Iran from the Arabia Peninsula.
“It is used to transport a fifth of the world’s petroleum liquids which is around 21 million barrels or $1.2 billion worth of oil every day,” Dryad states on its site.
“The majority of Saudi Arabia’s crude exports pass through the Strait of Hormuz, meaning much of the oil-dependent economy’s wealth is situated there, similarly, 10 percent of the U.S.’s total oil imports per month transit the straits,” it adds.
“Further, a quarter of the world’s LNG is also transported through the channel. This makes the Strait of Hormuz not only the world’s busiest shipping lane but also the most strategically important choke point for the world’s oil supply because there are limited alternatives to bypass the strait,” it continues.
In a gas and LNG market update sent to Rigzone on April 17, Rystad Energy Senior Analyst Lu Ming Pang said, “the strategic significance of the Straits of Hormuz cannot be overstated and market participants will be closely monitoring developments in the region”.
Pang described the straits as “a crucial artery for Qatar and the UAE to reach both European and Asian markets”.
“As tensions simmer, global energy dynamics have a lot at stake, knowing that any added disruption could send energy prices shooting upward,” Pang added.
“At the moment, fundamentals in the gas and LNG markets have not changed despite the retaliatory strike by Iran on Israel and prices in the global markets continue to reflect that. Nevertheless, the situation is fluid,” Pang continued.
In a research note sent to Rigzone on April 20, analysts at J.P. Morgan said, “the closure of Hormuz is a low-risk event as Iran will be shooting itself in the foot both economically and politically by irritating its main customer”.
In a statement posted on its website on April 13, the Norwegian Maritime Authority (NMA) warned of “enhanced tension and threat in the Persian Gulf, Strait of Hormuz, Gulf of Oman, and Arabian Sea”.
“Due to the latest information and incidents, the NMA urge Norwegian vessels in the area to be cautious and to enhance vigilance operating in the area,” the NMA said in the statement.
“CSO and SSO should seek information from reliable sources on the development in the area, and take necessary action as required,” it added.
“The development is monitored closely from our side and the security level in the area may change on short notice,” it continued.
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The post Dryad Says Reports Indicate Iran Intends to Disrupt Strait of Hormuz appeared first on Energy News Beat.
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