Iranian Strait Shutdown Threatens Global Energy Markets
Tehran’s strike campaign has sparked concerns about disruptions to shadow shipping networks and sanctions-evasion routes, potentially squeezing Russia’s war funding and China’s industrial and military supply chains.
The crisis began when the Iranian regime declared the crucial Strait of Hormuz closed, under threat of vessels being “torched.” Oil tanker traffic immediately fell sharply as merchant seamen now fear missile strikes. The conflict has also affected the so-called “shadow fleet” of unflagged or surreptitiously flagged oil tankers connected to economically isolated countries like Cuba, Iran, and Russia.
European Partners Take Action Against Shadow Fleet Vessels
Belgium’s army on Monday interdicted a shadow-fleet tanker called the MT Ethera as it transited the North Sea. The Belgian Defense Minister Theo Francken told GCaptain News that the tanker was redirected to Zeebrugge by an escort and would be seized by Brussels.
“Operation Blue Intruder was carried out by a team of exceptionally brave service members. Excellent work,” he said, as the outlet also reported the ship was tied to a confidant of Khamenei. The MT Ethera is reportedly linked to the son of senior political adviser Ali Shamkhani, whose family reportedly controls an entire fleet of tankers that may be used to facilitate Iranian and Russian oil trade.
Ural Price Cap Enforcement Intensifies
A consortium of Western powers also enforces the Ural Price Cap, which was dropped to about $44 per barrel last month. Named for the Ural Mountains, the price cap is meant to keep Russian oil below free-market rates. This newly emboldened Western targeting of the so-called “gray market” of shadow-fleet oil indicates potential problems for nations that rely on it, such as China and Cuba.
China reportedly relies heavily on Iran for otherwise sanctioned oil, while Russia could see further belt-tightening that could adversely affect the cash flow needed to continue its war in Ukraine. The reported obliteration of the Ayatollah and the next 48 successors, by President Donald Trump’s count, along with the arrest of Venezuelan dictator Nicolás Maduro, leaves not only the shadow fleet but also its customer nations’ suppliers in shambles.
CENTCOM Strikes Iranian Drone Carrier
CENTCOM this week posted a video of a U.S. strike on a drone-carrying Iranian ship, and Cmdr. Brad Cooper said more than 30 such Tehran-linked vessels have been sunk since the offensive began, according to Naval Today. “In the last few hours alone, we struck an Iranian drone carrier roughly the size of a World War II-era aircraft carrier, and it is currently on fire,” Cooper told the outlet.
The Treasury Department has sanctioned 30 people or entities tied to enabling illegal Iranian oil sales and/or benefiting its weapons production as part of Trump’s “maximum pressure” campaign. OFAC targeted additional vessels operating as part of Iran’s shadow fleet, which transport Iranian petroleum and petroleum products to foreign markets and serve as the regime’s primary source of revenue for financing domestic repression, terrorist proxies, and weapons programs.
As OPEC rate hikes affect American energy prices, the deconstruction of the shadow fleet could also lead to inflation in China. Fox News Digital reached out to the Treasury Department for more information on the effects of the shadow fleet, as it oversees the U.S. Office of Foreign Assets Control (OFAC).
Original Article: Shadow fleet under fire: Iran’s strait shutdown could squeeze Russia’s war chest, China’s oil lifeline — Foxnews