FINWIRES · TerminalLIVE
FINWIRES

Iran Warns on Regional Oil Exports; Says Strait of Hormuz Won't Return to Pre-War Conditions

By

Iranian Parliament Speaker Mohammad Bagher Ghalibaf said Wednesday that if Iran cannot export its oil, no country in the region would be able to export oil, according to a post on X.

Ghalibaf said regional infrastructure would not be secure and that the Strait of Hormuz would not return to pre-war conditions as long as US forces remained in the region.

"We have repeatedly said that the situation of the strait will not return to pre-war conditions," Ghalibaf posted on X.

Ali Akbar Velayati, an adviser to Iran's supreme leader, reportedly warned that any miscalculation against Iran could ignite global energy markets. He said US pressure and efforts to rally regional allies and European partners would spread the consequences beyond military conflict into the global economy, according to Tasnim News.

Iranian Foreign Ministry spokesperson Esmaeil Baqaei alleged that the US was breaching international law through repeated attacks and threats against Iran's nuclear facilities in a post on X on Wednesday.

Iran's nuclear activities have been fully declared to the International Atomic Energy Agency in accordance with its safeguards obligations, Baqaei said on X.

He alleged that Washington is using Kolang Kouh, or Pickaxe Mountain, as a pretext for aggression, destruction and sabotage despite no nuclear activity there.

"The Iranian people stand resolute and united, ready to confront with full strength any act of US hostility or violation of their country's sovereignty and national security," Baqaei said in the post.

Iran's Ministry of Foreign Affairs did not immediately reply to' request for comment.

The remarks followed warnings by US President Donald Trump on Truth Social on Wednesday. Trump warned Iran against shooting at commercial vessels in the Strait of Hormuz, a vital artery for energy flows.

"From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by missile, rocket, drone, or any other device or weapon, the United States will bomb and destroy one bridge or power plant, including those located next to, or in, the Capital City of Tehran," Trump posted.

Centcom said Tuesday that US forces began striking military targets in Iran at 7 p.m. ET for an 11th consecutive night to further degrade Tehran's ability to threaten commercial shipping in the Strait of Hormuz, according to the command's post on X.

Meanwhile, the US Central Command continued its naval blockade against Iran on Wednesday as Tehran warned no country in the region would sell oil if Iran could not.

"To ensure full blockade compliance, Centcom has redirected 9 commercial vessels and disabled 1 as of July 22," Centcom posted on X.

It said the USS Michael Murphy's Combat Information Center coordinated the latest enforcement efforts as US forces continued the naval blockade against Iran from the Arabian Sea, according to the post.

Related Articles

Oil & Energy

US Oil Update: Crude Advances as Middle East Conflict Fuels Supply Risk Concerns

Crude futures gained in after-hours trading on Tuesday as intensifying retaliatory exchanges between the US and Iran and fresh threats to key Middle Eastern energy chokepoints heightened concerns over potential supply disruptions.Front-month West Texas Intermediate crude futures rose 2.4% to $84.34 per barrel, while Brent futures climbed by 2.6% to $91.56/bbl.Futures are currently trading at a five-week high. Saxo Bank strategists said that WTI settled near $83/bbl on Monday, its highest close since mid-June, after swinging through a five-dollar range.The US Central Command said as of Monday it had redirected eight commercial vessels as part of its ongoing naval blockade against Iranian ports, as disruptions in the Strait of Hormuz and Bab el-Mandeb continued to constrain global oil shipping."As of July 21, US forces have redirected 8 commercial vessels and disabled 1 to fully enforce the blockade," Centcom said in an X post on Tuesday.On Monday, the US military said that it launched another round of strikes on Monday night, targeting Iranian military command centers, launch sites and air defenses, to "further degrade" Tehran's capabilities to attack ships in the Strait of Hormuz.The tenth round of air strikes follows President Trump's vow that Iran "will pay" for killing American soldiers.Iran, in response, said it struck two oil tankers in the strategic waterway, as well as US military assets in Bahrain, Kuwait and Jordan, according to Iranian media reports.Kuwait said that multiple crew members were injured in Iranian strikes on a Kuwaiti tanker passing through the Hormuz on Monday night.According to a Kuwait Ministry of Foreign Affairs' statement on Tuesday, the country renewed its demand for Iran to immediately cease its illegitimate attacks, emphasizing Kuwait's reservation of its right to take necessary measures, and holding Iran fully responsible for this aggression and its ongoing assaults against Kuwait.The UK Maritime Trade Operations said two vessels reported being struck by unknown projectiles in and near the Strait.Soojin Kim, research analyst at MUFG, said that risks to regional energy supplies remain elevated as attacks on vessels in the Hormuz disrupted shipping traffic, while Yemen's Houthis threatened Saudi maritime exports through the Red Sea.Meanwhile, two tankers that loaded Saudi crude bound for China and India this week reportedly made U-turns and were headed toward the Suez. Kpler said in a post on X that the diversions could be an early indication of broader changes in tanker trade flows.The course reversal comes a day after Yemen's Houthis threatened a maritime embargo against Saudi Arabia, warning that any further escalation by Riyadh would be met with a broader response.On the supply front, the International Energy Agency said on Monday that it is "closely monitoring the situation in oil markets" as escalating hostilities in the Middle East increase concerns over security of supplies.IEA executive director Fatih Birol said that markets "continue to benefit from several cushioning factors," including significant supplies from Persian Gulf producers such as Saudi Arabia and the UAE.Meanwhile, data from the American Petroleum Institute revealed Tuesday that US crude oil inventories increased by 2.603 million barrels in the week ended July 17, following a 564,000-barrel draw the previous week, and compared with analysts' estimate of a 1.5-mmbbl decline according to a Bloomberg-compiled survey.

Oil & Energy

US Centcom Redirects 8 Vessels; Hormuz, Bab el-Mandeb Disruptions Strain Oil Shipping

The US Central Command said as of Monday it had redirected eight commercial vessels as part of its ongoing naval blockade against Iranian ports, as disruptions in the Strait of Hormuz and Bab el-Mandeb continued to constrain global oil shipping."As of July 21, US forces have redirected 8 commercial vessels and disabled 1 to fully enforce the blockade," Centcom said in an X post on Tuesday.The development comes as shipping through two of the world's most important oil chokepoints remains under severe pressure. MarineTraffic said that simultaneous disruptions in the Strait of Hormuz and Bab el-Mandeb could have a major impact on global crude supply.US forces have helped facilitate the movement of about 900 commercial vessels carrying about 450 million barrels of crude oil through the region's key shipping lanes since May."A simultaneous and prolonged disruption of Bab el-Mandeb and the Strait of Hormuz could affect maritime routes carrying approximately one-quarter of global oil supply," MarineTraffic said.MarineTraffic data showed that verified transits averaged about 41 vessels per day between July 15 and July 20, about 43% below the 2023 peak of 72 transits per day.Loadings through Bab el-Mandeb declined 34% in two weeks, from 29.58 million barrels to 19.50 mmbbl, MarineTraffic said.Any confirmed strikes are likely to push dirty tanker freight higher, raising war-risk premiums and disrupting near-term crude deliveries, MarineTraffic said, noting that crude is the main commodity at risk."Crude flows through Bab el-Mandeb reached 193.78 mmbbl in June 2026, as Saudi Arabia redirected more exports from Ras Tanura to Yanbu," it said.Additionally, Saudi Arabia's "Hormuz workaround" sends up to 17.5 million metric tons per month through the Bab el-Mandeb Strait, which the Houthis are threatening to close.According to MarineTraffic data, the first operational response to heightened security risks in the Red Sea is now visible. Two laden crude tankers, a Singapore-flagged vessel initially sailing to China and a Liberia-flagged vessel bound for India, altered their planned voyages after departing Saudi Arabia.According to Kpler, these diversions could be an early indication of broader changes in tanker trade flows ahead."If Saudi crude exports from Yanbu to Asia increasingly avoid the Bab el Mandeb Strait, cargoes would likely transit via the Suez Canal and the Cape of Good Hope, substantially increasing voyage distances and almost tripling tonne mile demand," Kpler said in an X post.Kpler strategists noted that Suez draft regulations would favor Suezmax tankers, forcing many Very Large Crude Carriers to transit with partial loads.Longer voyages would, in turn, tighten tanker availability, push freight markets higher and increase delivered crude costs for Asian refiners."If diversions become more widespread, freight economics could begin to reshape global crude trade flows," Kpler said.Asian countries face the greatest risk. India received 15,378 kilotons through the strait in June, while South Korean and Japanese liquid imports rose to 38.6 mmbbls and 26.8 mmbbls, respectively, MarineTraffic data revealed.MarineTraffic strategists noted that while the Bab el-Mandeb Strait remained open, traffic was operating well below normal.Meanwhile, traffic through the Strait of Hormuz remained subdued on Tuesday, with 15 confirmed crossings recorded, according to Windward Maritime data.The subdued traffic comes after the UK Maritime Trade Operations reported two separate incidents involving commercial vessels in the region.UKMTO said a tanker in the Strait of Hormuz, off the Omani coast, had reported being struck by an unknown projectile, forcing its crew to abandon the vessel and board lifeboats.The UK maritime agency said in a separate incident that a vessel reported being struck by an unknown projectile, causing damage to its steering gear.Iran's Islamic Revolutionary Guard Corps also claimed to have stopped "two non-compliant oil tankers" attempting to pass through the "unsafe southern route of the Strait of Hormuz" after explosions caused fires on the vessels.The incidents add to growing uncertainty among ship operators navigating the Persian Gulf region amid heightened military tensions between the US and Iran.

Oil & Energy

India's Russian Oil Buying Reportedly Holds Near Record as Gulf Supply Risks Deepen

India intensified its reliance on Russian crude as Gulf supply disruptions intensified despite US sanctions pressure, according to multiple media reports on Tuesday.Russian crude deliveries to India topped 2.3 million barrels per day in June, while July arrivals have remained close to that pace after trade between the two countries expanded sharply following Moscow's 2022 invasion of Ukraine, according to a Bloomberg report.Trading intermediaries have enabled Russian crude to continue reaching overseas buyers despite US sanctions targeting several major producers, the report added.Indian refiners reportedly increased purchases from Russia as Middle East supplies tightened and lower Russian prices improved their appeal, while renewed security threats disrupted shipping through the Strait of Hormuz.Russia's four-week average seaborne crude exports eased for a second consecutive week to 4.16 million b/d through July 19, remaining close to the record level reached earlier this month.Ukrainian drone attacks have reduced Russia's refining capacity, leaving more crude available for export while July refinery runs fell to their lowest level in over 21 years, deepening domestic fuel shortages.Russian crude has become steadily cheaper over the past 13 weeks, with four-week average prices falling to little over half the levels recorded in mid-April, encouraging additional buying from Indian refiners.Proposed US legislation imposing tariffs of up to 100% on major buyers of Russian energy, including India, could curb Indian demand, although President Donald Trump's support for the measure remains uncertain.Russia loaded 27.73 million barrels of crude onto 37 tankers in the week ended July 19, or 3.96 million b/d. Seaborne volumes waiting at sea climbed to about 137 million barrels, according to Bloomberg, citing vessel-tracking data and port-agent reports.India imported a record 2.64 million b/d of Russian crude in June, up 37.4% over the month and representing about half of the country's total crude imports of 5.24 million b/d, Reuters reported.Russian crude accounted for almost 41% of India's oil imports during the April-June quarter, up from about 38% from a year earlier, while the Middle East's share declined to 31% from 41.4%.Indian refiners also increased purchases from Brazil, Venezuela and Angola as fighting resumed after the collapse of the Washington-Tehran truce, disrupting traffic through the Strait of Hormuz.Indian refiners expect to source more crude from Russia, West Africa and the Americas if disruptions in the Strait of Hormuz continue and Houthi threats expand, although shipping Saudi crude via the Cape of Good Hope would significantly increase transportation costs, Reuters reported.India's Ministry of Petroleum and Natural Gas did not immediately respond to' request for comment.