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India Today
33 minutes ago
- Business
- India Today
Supertankers U-turn, zig-zag, pause around Strait of Hormuz as strikes continue
At least two supertankers made U-turns at the Strait of Hormuz following U.S. military strikes on Iran, shiptracking data shows, as more than a week of violence in the region prompts vessels to speed, pause, or alter their decision to join Israel's attacks on Iran has stoked fears that Iran could retaliate by closing the strait between Iran and Oman through which around 20% of global oil and gas demand has spurred forecasts of oil surging to $100 a barrel. Disruption is already evident, with tankers avoiding spending more time than needed in the strait, industry sources Sentosa Shipbrokers said that over the past week, empty tankers entering the Gulf are down 32% while loaded tanker departures are down 27% from early May Coswisdom Lake, a very large crude carrier (VLCC), reached the strait on Sunday before making a U-turn and heading south, Kpler and LSEG data showed. On Monday it turned back again, resuming its journey towards the port of Zirku in the United Arab South Loyalty, also a VLCC, made a similar U-turn and remained outside the strait on Monday, LSEG data showed. It was scheduled to load crude from Iraq's Basra terminal, according to Kpler data and two shipping Coswisdom Lake was scheduled to load crude at Zirku for delivery to China. It was chartered by Unipec, a trading arm of China's state-run Sinopec LSEG and Kpler data did not immediately respond to a request for LINGERINGShipowners will try to minimise time that vessels spend inside the Strait of Hormuz due to the conflict, KY Lin, spokesperson at Taiwan's Formosa Petrochemical Corp."Vessels will only enter the region when it is nearer to their loading time," he said on shipping firms Nippon Yusen 9101.T and Mitsui O.S.K. Lines 9104. T said on Monday they will continue to transit the strait but have instructed their vessels to minimise time spent in the oil traders and analysts told Reuters that they had been warned to expect possible shipping delays as vessels wait for their turn outside the parliament on Sunday approved a measure to close the strait, Iran's Press TV reported, but any such move would require approval from the Supreme National Security has threatened to close the strait in the past but has never done so.- EndMust Watch
Mint
2 hours ago
- Business
- Mint
As Israel-Iran war escalates, tankers don't know what to do. They pause, make a U-turn, zig-zag around Strait of Hormuz
At least two supertankers made U-turns near the Strait of Hormuz following US military strikes on Iran, shiptracking data shows, as more than a week of violence in the region prompts vessels to speed, pause, or alter their journeys. Washington's decision to join Israel's attacks on Iran has stoked fears that Iran could retaliate by closing the strait between Iran and Oman through which around 20 per cent of global oil and gas demand flows. Fears that Iran could shut the strait has spurred forecasts of oil surging to $100 a barrel. Both Brent and West Texas Intermediate crude hit fresh five-month highs on Monday in choppy trade as investors weighed the potential risks to supply. Freight data shows that shipping rates for supertankers, which can carry 2 million barrels of oil, have also soared, more than doubling in a week to over $60,000 a day. On Sunday, the Coswisdom Lake, a very large crude carrier supertanker made a U-turn and headed south after reaching the strait, a Reuters report, citing Kpler and LSEG data, said. A day later, the carried turned around and resumed its journey towards the port of Zirku in the United Arab Emirates. The South Loyalty, also a VLCC, made a similar U-turn and remained outside the strait on Monday, LSEG data showed. It was scheduled to load crude from Iraq's Basra terminal, according to Kpler data and two shipping sources. The Coswisdom Lake was scheduled to load crude at Zirku for delivery to China. It was chartered by Unipec, a trading arm of China's state-run Sinopec, LSEG and Kpler data showed. Sinopec did not respond to a request for immediate comment. There have also been changes to how tankers are navigating the area, with a cluster of them sailing closer to Oman, while mainly Iranian-flagged vessels use Iran's local waters, shiptracking data on the MarineTraffic platform showed on Monday. The chemical tanker Kohzan Maru was sailing towards the strait before changing course to remain in the Gulf of Oman. The oil tanker Red Ruby and chemical carrier Marie C were also sailing towards the strait before opting to drop anchor off the UAE port of Fujairah, the data showed. All three en route for loadings. Shipowners are trying to minimise time that vessels spend inside the Strait of Hormuz due to the conflict, KY Lin, spokesperson at Taiwan's Formosa Petrochemical Corp, said on Monday. "Vessels will only enter the region when it is nearer to their loading time," he said. Japanese shipping firms Nippon Yusen and Mitsui O.S.K. Lines said on Monday they continue to transit the strait but have instructed their vessels to minimise time spent in the Gulf. Several oil traders and analysts told Reuters that they had been warned to expect possible shipping delays as vessels wait for their turn outside the area. "Diversifying sources of supply and shipping routes and learning from past disruptions like the Red Sea are critical," said Leon Alexander, partner at global law firm Clyde & Co. (With inputs from Reuters)
Time of India
2 hours ago
- Business
- Time of India
Middle East crisis: Supertankers making U-turns near Strait of Hormuz; at least 5 rerouted
Strait of Hormuz (Pic credit: AP) At least two supertankers abruptly turned back near the Strait of Hormuz following US military strikes on Iran, according to ship-tracking data, the clearest sign yet that escalating Middle East tensions are beginning to rattle the arteries of global energy supply. The moves come as the US joins Israel in its military campaign against Iran, raising fears of Iranian retaliation in the form of a partial or full closure of the Strait, the narrow chokepoint between Iran and Oman through which nearly 20% of the world's oil and gas shipments pass. Shipowners, energy traders, and governments are watching with growing unease as oil markets spasm and vessels stall, reroute, or anchor offshore, waiting out the storm. Tankers turn back, rates skyrocket On Sunday, the Coswisdom Lake, a Chinese-chartered Very Large Crude Carrier (VLCC), made a U-turn near the strait before changing course again on Monday, resuming its route toward the UAE port of Zirku, according to data from Kpler and LSEG. The vessel was scheduled to load crude for delivery to China, chartered by Sinopec's trading arm, Unipec. The Chinese firm has not commented publicly. Another VLCC, the South Loyalty, scheduled to lift crude from Iraq's Basra terminal, also reversed course and remained outside the strait, according to LSEG and Kpler data. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo The rerouting isn't isolated. Over the past week, inbound empty tankers entering the Gulf have fallen 32%, and loaded departures are down 27% compared to early May levels, according to Singapore-based Sentosa Shipbrokers. Rates for VLCCs, which can carry 2 million barrels of oil, have more than doubled in the past week, crossing $60,000 per day, freight data shows. Rerouting, delays and anchored vessels More tankers are now hugging the coast of Oman or halting off ports in the UAE. MarineTraffic data shows a cluster of tankers rerouting to avoid Iranian waters, while primarily Iranian-flagged vessels remain within domestic zones. The chemical tanker Kohzan Maru was seen diverting away from the strait, lingering in the Gulf of Oman. The oil tanker Red Ruby and chemical carrier Marie C, both en route for loading, opted to anchor off Fujairah, UAE, instead of transiting the strait. "Vessels will only enter the region when it is nearer to their loading time," said KY Lin, spokesperson for Taiwan's Formosa Petrochemical Corp. The company is among many adopting a wait-and-watch stance, balancing operational deadlines with geopolitical risk. Oil prices surge, traders brace for supply snags The uncertainty pushed Brent and WTI crude to five-month highs Monday, with markets swinging on fears that any further escalation or Iranian naval retaliation could pinch already tight global supply. Analysts are now bracing for oil potentially spiking to $100 a barrel. Some Japanese shippers, including Nippon Yusen and Mitsui O.S.K. Lines, said their vessels are still transiting the strait but under strict instructions to reduce time spent inside Gulf waters. Oil traders and analysts told Reuters they have been warned to expect shipping delays as vessels cluster outside the high-risk zone, awaiting instructions or turnarounds. Iranian threats loom, but closure still unlikely — for now Iran's Press TV reported that Iran's Parliament on Sunday approved a resolution to close the Strait of Hormuz, a move that, if executed, could send shockwaves through global markets. However, such a drastic action would require approval from the country's Supreme National Security Council. While Iran has often threatened to close the Strait during periods of tension, it has never followed through. Analysts warn that even the perception of a threat is enough to unsettle trade routes and inflate freight and fuel costs.
CNBC
3 hours ago
- Business
- CNBC
Tankers reversing course from Strait of Hormuz following U.S. attack on Iran nuclear sites
More tankers are reversing course away from the Strait of Hormuz as concerns rise on the possible closure of the vital chokepoint of trade. Yui Torikata, senior liquid market analyst at industry data firm Kpler, said the situation is fluid. The firm's data is showing a notable event occurred between early Sunday and early Monday, when at least six vessels — two very large crude carriers, three chemical tankers, and one refined products carrier—diverted their courses away from the Strait of Hormuz. The specific vessels identified are: All vessels are in ballast, meaning they either are empty or carrying light loads. "However, the situation has already evolved," Torikata said. "As of this morning, three of those six vessels —the South Loyalty, Coswisdom Lake, and Damsgaard — have again changed direction and are now heading back towards the Strait of Hormuz. The other three vessels are currently idling off the coasts of Khor Fakkan and Muscat." "This specific weekend event should be seen in a broader context," said. "In the immediate wake of the Israel-Iran conflict, the number of available empty [ballast] crude carriers within the Middle East Gulf zone fell to a record low, indicating significant reluctance from shipowners to enter the area. However, that trend has since reversed. "The count of available tankers recovered toward the weekend, and the number of crude carriers in the Gulf of Oman signaling their intent to enter the Mideast Gulf has also recovered from the low seen on June 16," she added. "This suggests that, for now, the overall flow of vessels into the region is being sustained despite the recent, specific diversion event." The moves follow a U.S. attack Saturday on what have been identified as three major nuclear enrichment facilities in Iran. Andy Lipow, president of Lipow Oil Associates, said the reports by the UK Maritime Trade Operations on widespread electronic interference and GPS jamming and location spoofing are adding to vessel owners' worries. "Combined with increasing insurance costs, some owners will simply avoid the area — like Frontline. This causes a de facto partial supply disruption if there is a lack of tankers to carry the oil that needs to be exported," Lipow said. Frontline tanker Front Eagle and dark fleet tanker Adalynn collided last week near the Strait of Hormuz. Following the collision, a fire on the deck of the Front Eagle erupted and was extinguished. "Some tanker owners may feel that China, who buys 90% of Iranian crude oil along with significant quantities of oil from the Middle East, is pressuring Iran not to disrupt shipping," Lipow said. "While oil exports are Iran's economic lifeline and it would not be in Iran's interest to halt its own exports, if cornered, Iran might decide to inflict as much economic pain as it can on the rest of the world." Lipow added this attack could spark additional geopolitical instability. "While China has condemned the United States attack on Iran, we have not seen China provide Iran with any kind of support other than words," Lipow said. "Russian attacks Ukraine, the United States attacks Iran, now China may feel emboldened to attack Taiwan." Jakob Larsen, head of security at Bimco, the world's largest direct-membership organization for shipowners, charterers, shipbrokers, and agents, warned Iran could attempt a wider disruption of commercial shipping in the Strait of Hormuz through attacks on merchant ships. Anti-ship missiles or drones of both airborne and surface types could be used in these attacks, he said. "The laying of sea mines would constitute another dangerous development, but Iran's intent to do so is questionable due to the risk to Iran-affiliated commercial ships and the risk of environmental disaster in case a ship is damaged," Larsen said. The Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea, is recognized as one of the world's most important oil chokepoints. The inability of oil to traverse through, even temporarily, can ratchet up global energy prices, raise shipping costs and create significant supply delays. In 2023, oil flows through the waterway averaged 20.9 million barrels per day, accounting for about 20% of global petroleum liquids consumption, according to the U.S. Energy Information Administration. Hormuz handles less than 4% of global container trade, but the ports of Jebel Ali and Khor Fakkan are critical intermediary points for global shipping networks in the region. The majority of cargo volumes from those ports are destined for Dubai, which has become a hub for the movement of freight with feeder services in the Persian Gulf, South Asia, and East Africa.
NDTV
4 hours ago
- Business
- NDTV
U-Turning Oil Supertankers Cross Strait Of Hormuz After Avoiding It
Two supertankers, each capable of hauling about 2 million barrels of crude, headed through the Hormuz shipping strait at the mouth of the Persian gulf, having performed U-turns in the past 24 hours. On Sunday, the Coswisdom Lake and South Loyalty entered the waterway and abruptly changed course, according to vessel tracking data compiled by Bloomberg. After a pause, both then headed back through Hormuz. One was almost through and the other entering it, signals from each showed on Monday. The two vessels' movements into the world's most important oil-producing region come as shipbrokers and others in the oil tanker market report a cautious willingness to enter the stretch of water that's pivotal to the global oil trade. Separately, Greece's shipping ministry warned on Sunday that the country's owners should think twice about Hormuz transit and instead head to a safe port. While neither tanker is Greek, the communication from Athens underscored an initial wariness about going through an area that handles about a fifth of the world's oil. Greece is the owner of the world's largest tanker fleet by transportation capacity. Coswisdom Lake is managed by Cosco Shipping Energy and South Loyalty by Sinokor Merchant Marine, according to industry databases. Both are very large crude carriers, or VLCCs. Neither company immediately responded to emailed requests for comment. There remain examples of wariness. Two large Japanese shipping companies said they will cut exposure to the strait, an unavoidable searoute for any vessel entering the Persian Gulf.
