Strait of Hormuz shut: Fuel tanker on fire, 750 ships caught in backups as insurers cancel war coverage
Iran-US war: The Strait of Hormuz has been closed, and a fuel tanker is on fire after being hit by two drones. Iran claims it was helping the US Navy ship.s Iran's Revolutionary Guards have warned that any ship trying to cross will be set ablaze.
Strait of Hormuz closed, ship on fire
Iran has shut down the Strait of Hormuz and warned that any vessel attempting to pass could be targeted and set on fire, Iranian media reported. Reports have emerged that a fuel tanker was hit by two drones and is ablaze in the strait, Iran's Revolutionary Guards said. The tanker has been identified as the Honduran-flagged Athe Nova, Iranian news agencies reported on Monday.
Iran said Athe Nova was supplying oil to US ships
An Iranian military spokesman mentioned the ship while detailing the Guards' military operations in the Gulf area on state TV. He did not specify whether it was hit by Iranian drones. A Guards statement alleged that the vessel was acting in "unison with America". According to Iranian media reports, the vessel was providing fuel for US Navy ships. Tracking data providers showed that the Athe Nova was in the region just before the attack.
750 ships caught in backups after Iran war
Reports suggest that the Iran-US war and the resultant closure of the Strait of Hormuz has led to 750 ships being caught in backups, including 100 container ships. Jeremy Nixon, CEO of container carrier Ocean Network Express (ONE), said that about "10% of the container ship global fleet" is stuck in its place. He added that all the cargo is "going to start backing up" in shipping hubs and key ports in Europe and Asia due to the lack of movement.
Strait of Hormuz is a vital oil export route
The Strait of Hormuz between Iran and Oman is a vital oil export route which carries one-fifth of global consumption and large quantities of gas. The strait connects Saudi Arabia, Iran, Iraq and the United Arab Emirates - the biggest oil producers in the Gulf - with the Gulf of Oman and the Arabian Sea. If the closure continues for a long time, oil prices could witness a massive increase worldwide.
Strait of Hormuz traffic witnessed sudden drop as Iran attacks began on Saturday
On Saturday, the day the attacks on Iran were launched, 55 oil tankers were in the Iranian waters. Eighteen of them were carrying crude, while 37 are empty, according to TankerTrackers.com, a company that monitors global oil shipments. Ship-tracking platform MarineTraffic showed that the traffic through the Strait of Hormuz witnessed a 70 per cent drop on the same day. Some ships continued to move and were likely trying to get out while they still could.
Insurers cancelled war risk coverage for ships
Vessel traffic through the Strait of Hormuz came to a halt as soon as Israel launched strikes on Saturday. The conflict led insurers to cancel war risk coverage for transits through the strait. According to report, several ships in the region were hit, including a US-flagged vessel in Bahrain on Monday. An Iranian drone carrier ship stationed near the strait could be used to attack vessels passing through the strait, shipbroker BRS warned.
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