Despite Iran's announcement Friday that theStrait of Hormuzwas open for commercial shipping, vessel tracking data and analyst reports cited in a CNBC report suggest the waterway remains functionally closed, with tankers turning back rather than attempting to pass through.
But the excitement in the markets did not match what was actually happening on the water.
A number of tankers and cargo ships attempted to exit the strait via the route Iran had designated around Larak Island on Friday, only to abruptly reverse course. Matt Smith, director of commodity research at Kpler, said the vessels had clearly not received approval to proceed.
"They've clearly not been given approval to pass through," Smith said, as per the report.
A source close to Iran's Supreme National Security Council told Tasnim News that commercial ships must follow Tehran's designated route and coordinate directly with its military. Vessels or cargoes connected to nations Iran considers hostile are not permitted to pass.
Tomer Ranaan, a maritime risk analyst at Lloyd's List Intelligence, said it remained unclear whether anything had meaningfully changed. "Iran still wants ships to transit through its territorial waters," he said, as per the report.
Adding another layer of complexity, President Trump confirmed that the US naval blockade of Iran remains in place. Tehran has warned it will shut the strait if that blockade is not lifted.
The world's largest shipping association, BIMCO, backed that view on Friday, advising all vessels to stay away from the strait due to the ongoing threat of mines. Jakob Larsen, BIMCO's chief security officer, said the area is "not declared safe for transit at this point."
The last oil and product tankers that departed the Persian Gulf before the strait closed have now completed their long journeys to destinations across Asia, Europe and North America. One of the final shipments, a tanker carrying Iraqi crude, is due to arrive in Long Beach, California, next week.
From here on, the consequences will begin stacking up. Refineries across Asia, which depend heavily on Middle Eastern oil, will be forced to cut production. Countries that rely on Asian refineries for products like jet fuel could soon face supply shortfalls as a result.
Source: India Latest News, Breaking News Today, Top News Headlines | Times Now
