Thai PM Says Deal Reached with Iran for Oil Vessels to Transit Strait of Hormuz

Reuters

The Strait of Hormuz.

Thailand has reached an agreement with Iran to allow Thai oil vessels safe passage through the Strait of Hormuz, the Southeast Asian nation’s Prime Minister said.

“An agreement has been reached to allow Thai oil tankers to transit safely through the Strait of Hormuz,” Thai Prime Minister Anutin Charnvirakul says at a press conference, adding the development would alleviate concerns over fuel imports.

Iranian forces have significantly reduced shipping through the Strait during the West Asian conflict, which began late last month. According to the U.S. Energy Information Administration, more than 80% of the crude oil and liquefied natural gas (LNG) passing through the Strait of Hormuz is destined for Asia.

Much of Southeast Asia is now facing the impact of fuel supply disruptions, with long queues at petrol stations in Thailand becoming increasingly common.

"The government will continue to adapt to evolving situations and adjust measures to minimise the impact on the public," Mr. Anutin added.

Earlier this month, a Thai bulk carrier travelling through the waterway was attacked, leaving three crew members missing.

Commodity shipments through the Strait of Hormuz fell by 95% between 1 and 26 March following the outbreak of the conflict, according to maritime tracking platform Kpler.

Iran’s Islamic Revolutionary Guard Corps (IRGC) said on Friday (27 March) that they had turned back three vessels attempting to pass through the Strait of Hormuz, adding that the route was closed to ships travelling to and from ports associated with its “enemies”.

According to the British naval maritime security agency UKMTO, 24 commercial vessels — including 11 tankers — have been attacked or have reported incidents in the Gulf, the Strait of Hormuz, or the Gulf of Oman this month.

Source: AFP



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