Iran’s Tanker Blacklist Raises New Risks for Gulf Oil

Three Indian refining companies and a major energy corporation plan to stop utilizing tankers on Iran's blacklist, reported Reuters, citing anonymous sources. The list consists of 45 vessels that Iran claims violated Strait of Hormuz rules. Tehran has warned it will punish any vessels involved in transporting cargo through the waterway.

This move will impact shuttle vessels used by the UAE and Saudi Arabia to export oil from the Persian Gulf to larger tankers. An unnamed source at an Indian refinery stated their company will avoid chartered vessels dealing with non-compliant ships for Middle Eastern cargoes.

Iran has warned that vessels on its blacklist could face fines, detention, and confiscated cargo if caught. The blacklist announcement came the day before the U.S. Treasury unveiled new sanctions targeting Tehran. These sanctions encompass brokers, companies, and vessels operating in the UAE, Hong Kong, China, Singapore, Switzerland, and Europe, transporting Iranian oil and funneling revenues to the Islamic Revolutionary Guard Corps and other Iranian entities.

Shipping companies are reportedly considering suspending ship-to-ship transfers in the Persian Gulf due to fears of Iranian repercussions under the new regulations. The broader market implications include a potential worsening of the Strait of Hormuz situation as the U.S. targets Iranian tankers, while Iran restricts access for other nations' vessels carrying crude from the Persian Gulf.