Latest news with #EhsanKhandouzi
Asharq Al-Awsat
2 days ago
- Business
- Asharq Al-Awsat
Former Iranian Minister Calls for Iranian Control over Strait of Hormuz
Former Iranian Economy Minister Ehsan Khandouzi has said that tankers and LNG cargoes should only transit the Strait of Hormuz with Iranian permission and this policy should be carried out from "tomorrow for a hundred days." It was not immediately clear whether Khandouzi was echoing a plan under the Iranian establishment's consideration or sharing his personal opinion, according to Reuters. Tehran has long used the threat of blocking the narrow waterway as a means to ward off Western pressure, without acting on its threats. The stakes have risen since Israel launched an air war on Iran last week after concluding the latter was on the verge of developing a nuclear weapon. Iran maintains its nuclear programme is purely for civilian purposes. "This policy [of controlling maritime transit in the Strait]is decisive if implemented on time. Any delay in carrying it out means prolonging war inside the country," Khandouzi posted on X on Tuesday. Khandouzi was economy minister until the summer of last year in the cabinet of late President Ebrahim Raisi and remains close to the Iranian establishment's hardliners. About 20% of the world's daily oil consumption — around 18 million barrels — passes through the Strait of Hormuz, which is only about 33 km (21 miles) wide at its narrowest point.
Global News
2 days ago
- Business
- Global News
What are the stakes in Strait of Hormuz if Iran-Israel conflict worsens?
Tensions are flaring up in the Middle East and there are already knock-on effects impacting economies globally, including with higher prices for gasoline at the pumps. According to a Reuters report on Wednesday, former Iranian economy minister Ehsan Khandouzi has said that tankers and LNG cargoes should only transit the Strait of Hormuz with Iranian permission and this policy should be carried out from 'tomorrow [Wednesday] for a hundred days.' While it's not clear if Khandouzi was speaking personally or if his views are shared by the regime in Tehran, the stakes of any changes to passage through the Strait of Hormuz would be significant, experts say. 'It is an enormous, probably the biggest and most important maritime choke point in the world for the global economy,' says Joe Calnan, vice-president of energy and a fellow at the Canadian Global Affairs Institute. Story continues below advertisement 'This is the single choke point that is most likely to upend the international economy, and there's not very many alternative routes.' Speaking at the G7 summit in Alberta, leaders said in a joint statement that they are watching the conflict closely. 'We urge that the resolution of the Iranian crisis leads to a broader de-escalation of hostilities in the Middle East, including a ceasefire in Gaza,' the statement said. 'We will remain vigilant to the implications for international energy markets and stand ready to coordinate, including with like-minded partners, to safeguard market stability.' 2:49 Trump claims Iran is 'totally defenceless' and that it's 'very late' to negotiate What is the Strait of Hormuz? The Strait of Hormuz is about 30 km wide at its narrowest point and acts as a channel between the Persian Gulf and the Gulf of Oman. Story continues below advertisement View image in full screen Persian Gulf region showing the Strait of Hormuz, a vital shipping route, and narrow choke point on the way to the Gulf of Oman and Arabian Sea. Although Oman, to the south, technically controls the waterway, Iran's location immediately to the north means vessels could be at risk of attacks or blockades. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Among the many shipping vessels that pass through the strait every day carrying a wide range of goods, the majority contain crude oil, liquified natural gas, propane and many others energy products critical to economies worldwide. According to the U.S. Energy Information Administration, which is the statistics branch of the U.S. Department of Energy, 20 million barrels of oil per day passed through the strait, or roughly 20 per cent of global consumption, in 2024. 'The inability of oil to transit a major chokepoint, even temporarily, can create substantial supply delays and raise shipping costs, potentially increasing world energy prices,' the U.S. Energy Information Administration says. Story continues below advertisement 'Although most chokepoints can be circumvented by using other routes—often adding significantly to transit time—some chokepoints have no practical alternatives. Most volumes that transit the strait have no alternative means of exiting the region, although there are some pipeline alternatives that can avoid the Strait of Hormuz.' Takeshi Hashimoto, CEO of Japan's second-largest shipping company MOL, was quoted by Reuters while speaking on the sidelines of the Energy Asia conference and describing the strait's importance. 'There is no alternative route for shipments in the (Persian) Gulf — there is no other choice,' he said. How did this all start? These tensions in the region are rooted in a combination of relatively recent conflicts, including Israel's fight with Hamas in Gaza, which Iran has been involved in by arming Hamas with military resources and intelligence, while also backing Hezbollah, Houthis and other militant groups. Story continues below advertisement Iran has also opposed terms of a nuclear deal with the United States. More recently, Israel launched strikes on Iran's nuclear and military facilities, which led Iran to launch counterattacks. The two sides have been engaging in military strikes for almost a week since, eventually drawing the more focused watch of the United States. If Iran were to target the Strait of Hormuz, it would rapidly escalate the situation. 'It's a difficult option for Iran to employ as it would almost certainly introduce the U.S. and others into the conflict,' says senior geopolitical adviser Arif Lalani at StrategyCorp in an email to Global News. Lalani was formerly the Canadian ambassador to Jordan, Iraq, Afghanistan and the United Arab Emirates and was also director general of strategic policy at what is now Global Affairs Canada. What happens if the Strait of Hormuz is shut down? Most of the oil coming from the Persian Gulf is bound for China, Korea, Japan, and India, with smaller volumes going to the U.S. as well, the U.S. Energy Information Administration data says. Story continues below advertisement But instability affects global oil markets, and not just individual countries. According to the International Energy Agency, over a fifth of the world's oil passes through the Strait of Hormuz daily, and a shutdown would mean a big spike for the price of oil beyond recent increases. In most cases, when the price of oil goes up, so too does the price of transportation, including gasoline for cars, planes, trains, boats and more. 'If we're talking about anywhere between five to 10 million barrels of oil per day being taken off the market, that could have huge impacts globally, and not something that's constrained just to the Middle East,' says Calnan. 'Energy is hugely reliant on oil for transportation, for heating, for electricity, for petrochemicals, and all sorts of things — oil is really important, and this is a major supply of it.' Gas prices in Canada, among other countries, could spike sharply if shipments reroute away from the Strait of Hormuz for fear of attacks by Iran or its proxies. The oil that Canada consumes comes largely from domestic sources, but also international, including the Middle East. A situation where the Strait of Hormuz sees fewer, or no shipments of exports like oil not only would be bad for Canadians filling up their gas tanks, but also have wider ripple effects across the economy. Story continues below advertisement This also could mean a potential lost opportunity for Canadian oil exporters as shutdown of the strait would mean higher international demand for oil. 'If Canada had built the pipelines and ports off our West Coast, Canada could be supplying key allies and the threat of disrupting the Strait of Hormuz would be much less — Canada and the West would be stronger' says Lalani. 'Instead, Canada's resources are marooned on the North American continent.' 2:56 Trump leaves G7 summit early due to Israel-Iran conflict Although experts feel it is unlikely that the Strait of Hormuz will be used for leverage at this stage of the conflict, it's important to understand the risks as Iran feels further pressure. 'They (Iran) would be kind of attacking the energy security of their own customers, and not Israel or the United States by shutting down the Strait of Hormuz. It's more of an existential threat to the global economy that Iran would be trying to use this as leverage,' says Calnan. Story continues below advertisement 'I still think it's extremely unlikely that they choose to do this, but it's currently looking like the Iranian regime might be in a situation of truly existential threat, and that can create some pretty extreme options being on the table.'
Straits Times
2 days ago
- Politics
- Straits Times
Iran and Israel trade accusations at UN shipping agency over sea lanes
LONDON - Iran and Israel accused each other of endangering commercial activity in sea lanes around the Gulf and the Red Sea at the UN's shipping agency on Wednesday, as their military conflict escalated. Iran's delegation told a session of the International Maritime Organization's security committee that Israel had in recent days extended its "unlawful attacks" to include petrochemical and gas infrastructure in Asalouyeh along Iran's Gulf coast. "These actions directly endanger international maritime security and the global energy supply chain," Iran said in a statement to IMO delegates, which was livestreamed. "If the international community fails to take urgent and concrete measures to halt this unlawful aggression, the risk of escalation at sea becomes imminent." Iran has previously threatened to close the Strait of Hormuz to traffic in retaliation for Western pressure. Any closure of the strait could restrict trade and affect global oil prices. Commercial ships are being advised by maritime agencies to avoid Iran's waters around Hormuz, shipping sources said on Wednesday. Former Iranian Economy Minister Ehsan Khandouzi has said that tankers and liquified natural gas cargoes should only transit the Strait of Hormuz with Iranian permission. Iranian Supreme Leader Ayatollah Ali Khamenei rejected Donald Trump's demand for unconditional surrender on Wednesday, and the U.S. president said his patience had run out, though he gave no clue as to what his next step would be. Israel's mission told delegates the IMO's foundational principle of global maritime navigation safety was being "openly and aggressively threatened" by Iran, partly through support of Yemen's Houthi militia, whose attacks have severely disrupted shipping through the Suez Canal and Red Sea in recent years. "Iran has turned our whole region and the Red Sea specifically into a war zone. Through its political, financial and military backing of the Houthi rebels, Iran has enabled a campaign of maritime terrorism against civilian vessels," Israel said. "It seeks to weaponize the world's busiest sea lanes, hold international shipping hostage, and impose its will through violence." The London-based IMO is responsible for regulating the safety and security of international shipping and preventing pollution and comprises 176 member state countries. The statements from Israel and Iran on Wednesday were noted by the Maritime Safety Committee, an IMO spokesperson said. The agency has faced growing pressures that it was becoming politicised. In 2023 Russia said the IMO was departing from its technical role because of "external pressure", which was impacting the fair treatment of all member countries. Iran's offer to host a maritime event in 2023 was rejected after a proposal led by the United States to rescind the bid was approved in a vote. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
TimesLIVE
2 days ago
- Business
- TimesLIVE
Former Iranian minister calls for Iranian control over Strait of Hormuz
Former Iranian economy minister Ehsan Khandouzi says tankers and liquefied natural gas cargoes should only transit the Strait of Hormuz with Iranian permission and the policy should be carried out from 'tomorrow for 100 days'. It was not immediately clear whether Khandouzi was echoing a plan under the Iranian establishment's consideration or sharing his personal opinion. Tehran has long used the threat of blocking the narrow waterway as a means to ward off Western pressure without acting on its threats. The stakes have risen since Israel launched an air war on Iran last week after concluding the latter was on the verge of developing a nuclear weapon. Iran maintains its nuclear programme is purely for civilian purposes. 'The policy [of controlling maritime transit in the Strait] is decisive if implemented on time. Any delay in carrying it out means prolonging war inside the country,' Khandouzi posted on X on Tuesday. Iran's oil ministry and foreign ministry did not immediately respond to a request for comment. Khandouzi was economy minister until last year in the cabinet of late president Ebrahim Raisi and remains close to the Iranian establishment's hardliners. The Strait of Hormuz lies between Oman and Iran and is the primary export route for Gulf producers such as Saudi Arabia, the United Arab Emirates, Iraq and Kuwait. About 20% of the world's daily oil consumption — around 18 million barrels — passes through the Strait of Hormuz, which is only about 33km wide at its narrowest point.
Straits Times
3 days ago
- Business
- Straits Times
Former Iranian minister calls for Iranian control over Strait of Hormuz
Former Iranian minister calls for Iranian control over Strait of Hormuz DUBAI - Former Iranian Economy Minister Ehsan Khandouzi has said that tankers and LNG cargoes should only transit the Strait of Hormuz with Iranian permission and this policy should be carried out from "tomorrow [Wednesday] for a hundred days." It was not immediately clear whether Khandouzi was echoing a plan under the Iranian establishment's consideration or sharing his personal opinion. Tehran has long used the threat of blocking the narrow waterway as a means to ward off Western pressure, without acting on its threats. The stakes have risen since Israel launched an air war on Iran last week after concluding the latter was on the verge of developing a nuclear weapon. Iran maintains its nuclear programme is purely for civilian purposes. "This policy [of controlling maritime transit in the Strait]is decisive if implemented on time. Any delay in carrying it out means prolonging war inside the country," Khandouzi posted on X on Tuesday. Iran's Oil Ministry and Foreign Ministry did not immediately respond to a request for comment. Khandouzi was economy minister until the summer of last year in the cabinet of late President Ebrahim Raisi and remains close to the Iranian establishment's hardliners. The Strait of Hormuz lies between Oman and Iran and is the primary export route for Gulf producers such as Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait. About 20% of the world's daily oil consumption — around 18 million barrels — passes through the Strait of Hormuz, which is only about 33 km (21 miles) wide at its narrowest point. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
