By Andrew Mills, Maha El Dahan, Jonathan Saul and Marwa Rashad
DOHA, July 7 (Reuters) – A Qatari LNG tanker was at risk of exploding and a Saudi crude tanker was damaged near the Strait of Hormuz on Tuesday, prompting maritime authorities to raise the threat risk for vessels transiting the strategic waterway to “severe” following reports Iran attacked commercial ships overnight.
The attacks signalled that tensions remain even though Washington and Tehran agreed to reopen the crucial strait following a three-month war that sent energy prices soaring and limited oil supplies. While traffic through the strait has picked up in the last week, it remains spotty, ranging between one-third and one-fifth of its pre-war levels.
The U.S. Navy-led Joint Maritime Information Center (JMIC) on Tuesday raised the threat level to transit the strait to ‘severe’ from ‘substantial’ following the attacks, citing deliberate hostile action likely under current conditions, the first time the threat level has been set at that severe status since June 15.
“The recent confirmed incidents highlight that the threat environment remains heightened and warrants extreme vigilance,” JMIC said in a note, adding that mariners should expect continued naval presence, congestion along transit routes, and more intense hailing by the Islamic Revolutionary Guard Corps.
It is unclear whether the attacks will lead to another full-scale interruption of shipping traffic through the strait, which prior to joint U.S.-Israeli attacks on Iran on February 28 was used to transit about one-fifth of the world’s oil and gas supplies.
Iran and the United States are still in the midst of broader talks about Iran’s nuclear ambitions and its desire to control Hormuz; the United States wants to prevent Iran from acquiring a nuclear weapon. The two countries wrapped up a round of talks last week without a permanent agreement.
The White House did not respond to requests for comment.
US REVOKES IRAN OIL LICENSE
Shortly after the latest attacks, the United States revoked a license that authorized the sale of Iranian oil, according to a U.S. official, warning that Iran’s actions in the strait were “wholly unacceptable” and would be met with consequences. The White House granted the license in June, easing decades-old sanctions as part of an agreement to reopen the strait.
The Al Rekayyat tanker, loaded with liquefied natural gas, sent out distress signals seeking assistance after it was hit on its port side, one of the sources said. Another source briefed on the matter said the vessel was at risk of exploding due to a fire in its engine room. The crew were safe and were being evacuated.
Qatar’s foreign ministry said Tehran bore full legal responsibility for the attack on the LNG tanker. Tehran did not immediately comment.
It is the first time an LNG ship from Qatar, a mediator in talks between the United States and Iran, has been struck since the start of the Iran war on February 28. LSEG shipping data showed the vessel last transmitted its location on June 18, indicating its AIS tracking transponder was switched off.
Nakilat, also known as Qatar Gas Transport Company Ltd, which owns the Al Rekayyat tanker, did not respond to requests for comment, nor did QatarEnergy, Qatar’s international media office, and U.S. Central Command.
The Saudi-flagged Wedyan supertanker was also damaged off Oman’s coast while transiting the strait. Saudi Arabia’s foreign ministry condemned the attacks, saying it holds Iran fully responsible for the attack on the Wedyan, which is owned and managed by Saudi shipping firm Bahri. Bahri did not respond to requests for comment.
About 14 vessels transited through the Strait of Hormuz on Tuesday, the lowest in nearly three weeks, data from ship tracking service Kpler showed.
Traffic through the strait has averaged 25 to 40 ships sailing daily in the last week, far lower than the daily average of 125 sailings before the conflict began. Shipping traffic was being conducted in accordance with Iran’s arrangements, Iran’s Press TV said, citing an official.
“The start stop nature of the re-opening of Hormuz is continuing to inject volatility into Middle Eastern tanker markets since it is leading to the irregular flow of tankers through Hormuz in both directions,” ship broker BRS said in a report this week.
There was no claim of responsibility for the attacks. A U.S. official, speaking on condition of anonymity, said initial indications were that Iran had fired at two commercial vessels.
In another incident later on Tuesday, a tanker was struck by a drone while transiting the strait sustaining minor damage, but was able to sail to its next port of call, British Navy-affiliated agency UKMTO said in a report.
Oil prices rose more than 2% on Tuesday, with Brent crude rising to $74.29 a barrel, highest since June 26.
Average daily rates to load a ship inside the Gulf reached almost $300,000 a day, up from below $200,000 a day last week due to more sailings.
President Donald Trump said Monday the United States would either reach a deal with Iran or “finish the job,” renewing his threat of military action as Tehran projects defiance following the funeral.
Talks to reach a final deal won’t start if U.S. threats continue, Iran’s foreign minister said on Tuesday.
(Reporting by Maha El Dahan, Jonathan Saul, Marwa Rashad, Andrew Mills, Jarrett Renshaw, Jasper Ward, Costas Pitas, Mrinmay Dey, Enas Alashray, Renee Maltezou, Menna Alaa El Din and Arathy Somasekhar; Writing by Yousef Saba and Jonathan Saul; Editing by Jamie Freed, Kate Mayberry, Ros Russell, Liz Hampton and David Gaffen)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibility for its content.