Some oil companies said to avoid ships on Iran blacklist

At least three Indian oil refiners and a global energy major are considering halting the use of vessels on Iran's newly announced blacklist, according to sources familiar with the matter. The blacklist, announced by Tehran on Sunday, includes 45 ships for their alleged violations of rules related to the Strait of Hormuz. Iran has threatened to penalize any ships transferring cargo with these vessels, escalating tensions over the key waterway for global energy supplies.

The blacklist's aim is to disrupt the Gulf's ship-to-ship (STS) transfer operations, which have maintained oil flows from the Middle East despite Iran's shipping restrictions due to the US-Israeli war on Iran.

The named vessels may face fines, detention, and confiscated cargoes, as per a post on social media from Iran's new body managing the strait. Some of the listed ships are owned or chartered by Saudi Aramco and Abu Dhabi National Oil Co (ADNOC), which have been used for STS transfers of crude, refined products, and liquefied natural gas (LNG). Shipping data indicates these tankers have been utilized for shuttling oil out of the Gulf to STS locations in the UAE or Oman.

Trade risk analyst Ana Subasic from Kpler suggests that more compliance-conscious buyers are expected to avoid these vessels. However, the trade is more likely to reroute through alternative tonnage, counterparties, or transfer locations rather than cease entirely. Multiple shipping firms are evaluating Iran's warning and discussing whether to continue STS operations, with some considering buying oil on a delivered basis to avoid STS locations in the Gulf of Oman.