Iran-UK tanker row escalates in Strait of Hormuz standoff.

Catogory : Market Report

A diplomatic row between Iran and the UK involving oil tankers escalated after a standoff in the world’s biggest oil shipping artery raised fresh concerns over global energy security which have also spiked insurance costs for ships transiting the Middle East.

The UK government said that an oil tanker owned by oil major BP, the British Heritage, was approached by three Iranian vessels in the Persian Gulf attempting impede the vessel. The Iranian ships turned back, however, after a British Navy frigate accompanying the tanker intervened.

“HMS Montrose was forced to position herself between the Iranian vessels and British Heritage and issue verbal warnings to the Iranian vessels, which then turned away,” the spokesman added. “We are concerned by this action and continue to urge the Iranian authorities to de-escalate the situation in the region.”

The incident comes a week after a supertanker carrying Iranian crude, Grace 1, was seized in Gibraltar by the Gibraltar government and the UK Marines for breaching EU sanctions for allegedly carrying Syria-bound oil. Iran threatened to retaliate against the seizure of Grace 1 last week by targeting UK ships.

At least six British-flagged tankers are currently in the Persian Gulf region. These tankers include Leonara Kosan, Atlantic Pioneer, Nordic Aquarius, Stena Important, Security and Hakusan.