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Daily Mail
5 days ago
- Politics
- Daily Mail
Shipping in Strait of Hormuz is hit by 'higher levels' of satellite signal electronic interference, with ships stopping at Dubai rather than risk entering major transport route Iran threatened to close
Shipping in the Strait of Hormuz is experiencing 'persistently higher levels of electronic interference' and congestion amid growing uncertainty over whether Iran will retaliate over U.S. airstrikes on Tehran's nuclear facilities. The Joint Maritime Information Center (JMIC) reported on Monday that the strategic situation in the strait remains 'uncertain' following the recent airstrikes, issuing an elevated maritime threat level for passing ships. The JMIC reports increased electronic interference in the region, particularly affecting Global Navigation Satellite Systems and believed to be originating from the Port of Bandar Abbas and in the Central Arabian Gulf. Amid uncertainty around whether Iran will attempt to close the strait or widen attacks in the region, some vessels have chosen to sail through the strait during daylight hours, the JMIC reports. Congestion near Dubai and in the southern Gulf of Oman may be due to ships waiting for orders, an advisory note shared on Monday suggested. Analysts have been closely monitoring the vital waterway since the U.S. bombed three nuclear facilities in Iran on Sunday. Iran's parliament was reported to have backed a move to close the strait late on Sunday, threatening around a fifth of all global oil movements. Iranian state television reported that the legislature had come to an agreement, but Supreme leader Ayatollah Khamenei would have to make the final decision, it said. The JMIC had reported that high levels of electronic interference 'continue to be experienced throughout the region' on Sunday as the U.S. joined Israel in attacking Iran. On the other side of the Arabian Peninsula, they note, the Iran-aligned Houthi rebels in Yemen 'continue to issue threats, primarily concerning the Red Sea'. 'This situation creates ongoing uncertainty in the maritime domain, particularly regarding Iran's potential focus beyond the U.S. and Israel.' Tehran has not responded to the American strikes with any kinetic action, though continues to exchange blows with Israel. It did warn the United States that its military now has a "free hand" to attack American targets. Tens of thousands of American troops are based in the Middle East. Fearing potential military action in the area or Iranian efforts to close the strait, a number of oil tankers have diverted away from the Strait of Hormuz. Three empty oil and chemical tankers diverted away from the Strait of Hormuz and changed course, tracking data showed on Monday. The Marie C and Red Ruby dropped anchor near Fujairah off the United Arab Emirates coast. The Kohzan Maru was sailing in the Gulf of Oman close to Omani waters, according to data on the MarineTraffic platform. Japan 's Nippon Yusen and Mitsui O.S.K. Lines said on Monday they had instructed their vessels to minimise the time spent in the Gulf as they continue to transit the Strait of Hormuz. Yesterday, the Coswisdom Lake and South Loyalty supertankers were tracked abruptly changing course and leaving the strait, according to Bloomberg. It was unclear what caused the two empty ships to head south, away from the mouth of the Persian Gulf. The closure of the strait, a chokepoint between Iran and Oman, would threaten petroleum shipments from Persian Gulf countries, likely spiking prices. Oil prices jumped more than four percent early Monday, and Dutch and British wholesale gas prices rose today as markets braced for Iran's response. Analysts have warned that a decision to close the Strait would meaningfully impact global oil flows and be tantamount to a declaration of war. 'A move to close Hormuz would be an effective declaration of war against the Gulf states and the U.S.,' Eurasia senior analyst Gregory Brew told Axios. Saleem Khan, Chief Data & Analytics Officer at Pole Star Global, told MailOnline: 'A closure of the Strait of Hormuz by Iran would be one of the most disruptive geopolitical shocks to global trade and energy markets in recent memory. 'Roughly one-fifth of global oil supply and a third of global LNG passes through the Strait daily. Any credible threat to this chokepoint would immediately send oil prices soaring, likely pushing Brent crude well past $100 per barrel, especially in an already volatile macroeconomic climate. 'This would exacerbate inflation worldwide, put further pressure on central banks, and impact everything from fuel prices to global food supply chains.' He warned that the knock-on effects would be 'immediate and wide reaching'. Ships would need to reroute and war-risk insurance premiums would sharply increase, hiking shipping costs. Some of these costs would likely then be passed down to the consumer - or businesses could find their operations no longer viable. 'Many tankers already face surcharges, and even partial disruption could strain commercial viability in key energy corridors.' Were Iran to close the strait, naval powers might look to force it back open, Khan said. 'Geopolitical escalation is highly likely. The U.S. and Gulf-state navies have already increased their presence in the region, and any closure would almost certainly draw military engagement to ensure freedom of navigation. 'The region is primed for a rapid flashpoint.' But whether Iran has the resource and will to suffocate its adversaries is unclear. 'Iran in its weakened state is unlikely to seek escalation of that kind at this time,' he added. Data compiled by Pole Star Global showed 'no clear indication' of widespread disruption in the region. Between June 22 and 23, there were a total of 117 vessels recorded in the region, over a 24 hour period. Between June 21 and 22 there were 127. And between 20 and 21, there were 115. A broader view of the past seven days shows 847 vessels transiting the strait, including 337 tankers. In the previous seven days, June 9 to June 16, there were 862 vessels, including 326 tankers. Pole Star Global suggested these figures reflect normal variation. Chris Weston at Pepperstone said Iran would be able to inflict economic damage on the world without taking the 'extreme route' of trying to close the Strait of Hormuz. 'By planting enough belief that they could disrupt this key logistical channel, maritime costs could rise to the point that it would have a significant impact on the supply of crude and gas,' he wrote. At the same time, 'while Trump's primary focus will be on the Middle East, headlines on trade negotiations could soon start to roll in and market anxieties could feasibly build'. Iran's armed forces nonetheless threatened on Monday to inflict 'serious, unpredictable consequences' on the U.S. in retaliation for its strikes on nuclear sites. 'This hostile act... will widen the scope of legitimate targets of the armed forces of the Islamic Republic of Iran and pave the way for the extension of war in the region,' said armed forces spokesman Ebrahim Zolfaghari on state television. Ali Akbar Velayati, an adviser to Iran's supreme leader Ayatollah Ali Khamenei, said bases used by US forces 'in the region or elsewhere' could be attacked. The US State Department issued a 'worldwide caution' for Americans on Sunday. China today warned against 'the spillover of war', urging the international community to do more to prevent the fighting from impacting the world's economy, noting the global importance of the Gulf maritime trade routes off the Iranian coast. And the leaders of Britain, France and Germany have called on Iran 'not to take any further action that could destabilise the region'. At a UN Security Council emergency meeting Sunday, Secretary-General Antonio Guterres warned against 'descending into a rathole of retaliation after retaliation'. But amid concerns of disruption to energy markets, Asian markets traded lower today. Tokyo's key Nikkei index was down 0.6 per cent at the break, with Hong Kong losing 0.4 per cent and Shanghai flat. Seoul fell 0.7 per cent and Sydney was 0.8 per cent lower. Brent crude futures were up $1.52 or 1.97 per cent to $78.53 a barrel as of 6am UK time. US West Texas Intermediate crude advanced $1.51 or 2.04 per cent to $75.35. Both contracts jumped by more than 3 per cent earlier in the session to $81.40 and $78.40, respectively, touching five-month highs before giving up some gains. Iran is the world's ninth-biggest oil-producing country, with output of about 3.3million barrels per day. It exports just under half of that amount and keeps the rest for domestic consumption. If Tehran decides to retaliate, observers say one of its options would be to close the strategic Strait of Hormuz. Economists at MUFG warned of 'high uncertainty of the outcomes and duration of this war', publishing a 'scenario analysis' of an oil price increase of $10 per barrel. 'An oil price shock would create a real negative impact on most Asian economies' as many are big net energy importers, they wrote, reflecting the market's downbeat mood. The dollar's value rose against other currencies but analysts questioned to what extent this would hold out. 'If the increase proves to be just a knee-jerk reaction to what is perceived as short-lived US involvement in the Middle-East conflict, the dollar's downward path is likely to resume,' said Sebastian Boyd, markets live blog strategist at Bloomberg. US Defense Secretary Pete Hegseth said on Sunday that the strikes had 'devastated the Iranian nuclear programme', though some officials cautioned that the extent of the damage was unclear.
South China Morning Post
5 days ago
- Business
- South China Morning Post
Beijing tells China ships in Strait of Hormuz to phone home amid safety risks
Published: 8:00pm, 23 Jun 2025 Updated: 8:11pm, 23 Jun 2025 Check in once a day so we know you're OK – that is the message China has sent to all domestic shipping vessels traversing the Strait of Hormuz, as Iran mulls closure of the key oil trade route following air strikes by the United States at the weekend. Effective immediately, all shipping companies and ship-management firms must submit daily reports with specific details from vessels transiting not only the Hormuz – a critically important shipping chokepoint – but also the Gulf of Oman and the Persian Gulf, which the strait connects. Monday's notice, posted online by the China Shipowners' Association (CSA), which operates under the Ministry of Transport, requires companies to report the vessel names, unique IMO numbers, type, flags, capacities, departure and destination ports, planned voyage times, crew sizes and daily movements through that region. And not just current or future ships – the CSA is also requiring that data be provided on past vessels that transited the region, since the beginning of last year. 'The ongoing tensions in the Red Sea have had widespread and profound impacts on shipping safety in surrounding waters,' the association said, noting that information collected in these key regions is crucial to ensuring national interests. A day earlier, Iran's parliament backed a measure to close the Hormuz after Washington bombed nuclear sites in the country, Iranian state media reported amid an escalating conflict with Israel .
South China Morning Post
5 days ago
- Business
- South China Morning Post
Beijing tells China ships in Strait of Hormuz to phone home, flags ‘shipping safety'
Check in once a day so we know you're OK – that is the message China has sent to all domestic shipping vessels traversing the Strait of Hormuz, as Iran mulls closure of the key oil trade route following air strikes by the United States at the weekend. Effective immediately, all shipping companies and ship-management firms must submit daily reports with specific details from vessels transiting not only the Hormuz – a critically important shipping chokepoint – but also the Gulf of Oman and the Persian Gulf, which the strait connects. Monday's notice, posted online by the China Shipowners' Association (CSA), which operates under the Ministry of Transport, requires companies to report the vessel names, unique IMO numbers, type, flags, capacities, departure and destination ports, planned voyage times, crew sizes and daily movements through that region. And not just current or future ships – the CSA is also requiring that data be provided on past vessels that transited the region, since the beginning of last year. 'The ongoing tensions in the Red Sea have had widespread and profound impacts on shipping safety in surrounding waters,' the association said, noting that information collected in these key regions is crucial to ensuring national interests. 02:37 Iran threatens to shut Strait of Hormuz after US bombs key nuclear sites Iran threatens to shut Strait of Hormuz after US bombs key nuclear sites
Khaleej Times
5 days ago
- Business
- Khaleej Times
India 'well prepared' to deal with closure of Strait of Hormuz by Iran, says minister
[Editor's Note: Follow our live blog for real-time updates on the latest developments in the Israel-Iran conflict.] Amid Iran's plan to close the Strait of Hormuz, one of the most strategically vital chokepoints in the world connecting the Persian Gulf and the Gulf of Oman, Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Sunday asserted that the centre will take "all necessary measures" to ensure affordability and the "stability of fuel supplies". "The Modi government has, over the past several years, not only ensured the stability of supplies, but also affordability. We will take all necessary measures to ensure that," Puri told ANI. The Union Minister said that the consequences of the Strait of Hormuz's closure would be factored in after markets open on Monday. However, he added that there was enough oil available in the global markets. "It's very difficult to speculate on the price factor. The oil price for a long time was between 65 and 70 (USD per barrel). Then it was between 70 and 75. Today is a Sunday. When the markets open tomorrow, the consequences of the closure of the Strait of Hormuz will be factored in. But as I've been saying for a long time, enough oil is available in the global markets," Puri said. "More and more oil is coming on the global markets, particularly from the Western Hemisphere. Even traditional suppliers would be interested in keeping the supplies because they also need revenue. So hopefully the market will factor that in," he added. Puri also posted on X that the centre will take "all necessary steps to ensure stability of fuel supplies" to the citizens. "We have been closely monitoring the evolving geopolitical situation in the Middle East since the past two weeks. Under the leadership of PM Narendr Modi, we have diversified our supplies in the past few years and a large volume of our supplies do not come through the Strait of Hormuz now. Our oil marketing companies have supplies of several weeks and continue to receive energy supplies from several routes. We will take all necessary steps to ensure stability of supplies of fuel to our citizens," Puri said in a post. After US' airstrikes on its nuclear installations, Iran is considering closing the Strait of Hormuz, one of the most strategically vital chokepoints in the world, and any blockade by Tehran would pose serious risks for Europe. Revolutionary Guard commander Sardar Esmail Kowsari told local media in an interview that closing the Strait of Hormuz "is under consideration, and Iran will make the best decision with determination," as per EuroNews. "Our hands are wide open when it comes to punishing the enemy, and the military response was only part of our overall response," added Kowsari, who is a member of the Iranian parliament in addition to his military position. Earlier on Sunday, US President Donald Trump said the "very successful" strikes had hit the Natanz, Fordow and Isfahan underground nuclear sites in Iran.
South China Morning Post
5 days ago
- Politics
- South China Morning Post
Why the Strait of Hormuz matters – and what a blockade could mean for China, the world
Iran's parliament has approved a measure to close the Strait of Hormuz after the United States launched military strikes on its nuclear facilities over the weekend. The final decision rests with the country's Supreme National Security Council and Supreme Leader Ayatollah Ali Khamenei – but the move has already deepened fears for the global energy trade. Advertisement In this explainer, we examine why this matters and what the implications of a blockade would be. Where is the Strait of Hormuz? Why is it so critical? The Strait of Hormuz is a narrow, 33-kilometre chokepoint between the Persian Gulf and the Gulf of Oman that handles roughly 20 per cent of global oil and gas flows, according to data from the US Energy Information Administration. In 2024, an estimated 84 per cent of the crude oil and condensate and 83 per cent of the liquefied natural gas that moved through the Strait of Hormuz went to Asian markets. China, India, Japan and South Korea were the top destinations in Asia, accounting for a combined 69 per cent of all crude oil and condensate flows passing through the strategic waterway. Advertisement These markets would likely be most affected by any disruptions to supply.
