Saudi Arabia said on Monday that two Saudi oil tankers were among vessels targeted in a “sabotage attack” off the coast of the United Arab Emirates, condemning it as an attempt to undermine the security of global crude supplies.
The UAE said on Sunday that four commercial vessels were sabotaged near
Fujairah emirate, one of the world’s largest bunkering hubs lying just
outside the Strait of Hormuz. It did not say who was
behind the
operation, which took place amid heightened tensions between the United
States and Iran.
Iran’s foreign ministry called the incidents “worrisome and dreadful” and asked for an investigation.
The Strait of Hormuz, a vital shipping route linking Middle East oil
producers to markets in Asia, Europe, North America and beyond, has been
at the heart of regional tensions for decades.
What Is the Strait of Hormuz?
The waterway separates Iran and Oman, linking the Gulf to the Gulf of
Oman and Arabian Sea. The Strait is 21 miles (33 km) wide at its
narrowest point, but the shipping lane is just two miles (three km) wide
in either direction.
Why Does It Matter?
The U.S. Energy Information Administration estimated that 18.5
million barrels per day (bpd) of seaborne oil passed through the
waterway in 2016. That was about 30 percent of crude and other oil
liquids traded by sea in 2016.
About 17.2 million bpd of crude and condensates were estimated to
have been shipped through the Strait in 2017 and about 17.4 million bpd
in the first half of 2018, according to oil analytics firm Vortexa.
With global oil consumption standing at about 100 million bpd, that means almost a fifth passes through the Strait.
Most crude exported from Saudi Arabia, Iran, the UAE, Kuwait and Iraq
— all members of the Organization of the Petroleum Exporting Countries —
is shipped through the waterway.
It is also the route used for nearly all the liquefied natural gas (LNG) produced by the world’s biggest LNG exporter, Qatar.
During the 1980-1988 Iran-Iraq war, the two sides sought to disrupt
each other’s oil exports in what was known as the Tanker War.
The U.S. Fifth Fleet, based in Bahrain, is tasked with protecting the commercial ships in the area.
“While the presence of the U.S. Fifth Fleet should ensure that
the critical waterway remains open, provocative Iranian military
maneuvers are likely in the immediate offing as is a nuclear restart”, analysts at bank RBC wrote on April 22.
Iran agreed to rein in its nuclear program in return for an easing of
sanctions under a 2015 deal with the United States and five other
global powers. Washington pulled out of the pact in 2018. Western powers
fear Iran wants to make nuclear weapons. Tehran denies this.
“All of these geopolitical stories could present a cruel summer
scenario for President (Donald) Trump as he seeks to keep oil prices in
check,” the RBC analysts wrote.
Are There Alternative Routes for Gulf Oil?
The UAE and Saudi Arabia have sought to find other routes to bypass the Strait, including building more oil pipelines.
Have There Been Incidents in the Strait Before?
In July 1988, the U.S. warship Vincennes shot down an Iranian
airliner, killing all 290 aboard, in what Washington said was an
accident after crew mistook the plane for a fighter. Tehran said it was a
deliberate attack. The United States said the Vincennes was in the area
to protect neutral vessels against Iranian navy attacks.
In early 2008, the United States said Iranian boats threatened its
warships after they approached three U.S. naval ships in the Strait.
In June 2008, the then Revolutionary Guards commander-in-chief,
Mohammad Ali Jafari, said Iran would impose controls on shipping in the
Strait if it was attacked.
In July 2010, Japanese oil tanker M Star was attacked in the Strait. A
militant group called Abdullah Azzam Brigades, which is linked to al
Qaeda, claimed responsibility.
n January 2012, Iran threatened to block the Strait in retaliation
for U.S. and European sanctions that targeted its oil revenues in an
attempt to stop Tehran’s nuclear program.
In May 2015, Iranian ships fired shots at a Singapore-flagged tanker
which it said damaged an Iranian oil platform, causing the vessel to
flee. It also seized a container ship in the Strait.
In July 2018, President Hassan Rouhani hinted Iran could disrupt oil
flows through the Strait in response to U.S. calls to reduce Iran’s oil
exports to zero. A Revolutionary Guards commander also said Iran would
block all exports through the Strait if Iranian exports were stopped.
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