Iranian VLCC Breaches US Blockade Hours Before Ceasefire Deadline
An Iranian supertanker, which had delivered 2 million barrels of crude to a ship-to-ship transfer offshore Indonesia, is en route to return to Iran’s Kharg Island after entering the Strait of Hormuz through the U.S. blockade, TankerTrackers.com said on Tuesday.
The supertanker then “returned home via the blockade line. She’ll reach Kharg Island tomorrow,” TankerTrackers.com said.
US Sanctions and Iranian Response
Iran’s Fars News agency reported that “Another Iranian Tanker Breaches the U.S. Siege,” referring to the VLCC journey back to Iran via the Strait of Hormuz. The tanker, which is under U.S. sanctions, transited the Strait of Hormuz early on Wednesday and entered Iranian waters with its tracking system active, according to the Fars News agency.
Oil Market Tensions Rise
The reported breach of the U.S. blockade comes hours before the end of the U.S.-Iran ceasefire as the oil market is already on edge, expecting the next moves from the U.S. and Iran. Following a brief opening for a few hours on Friday, the Strait of Hormuz was closed again on Saturday after Iran linked the opening of the vital oil shipping lane to the lifting of the U.S. naval blockade outside the Strait of Hormuz.
US President’s Warning
Iran’s First Vice President, Mohammad-Reza Aref, early on Monday, warned that security at the Strait of Hormuz comes at a cost. The United States is “highly unlikely” to extend the U.S.-Iran ceasefire that expires in the coming hours, U.S. President Donald Trump told Bloomberg News in a telephone interview late on Monday.
“I’m not going to be rushed into making a bad deal. We’ve got all the time in the world,” the President told Bloomberg News.
Original Article: Sanctioned Iranian VLCC Crosses Hormuz Line Hours Before Ceasefire Deadline — Oilprice