Israeli strikes on Iran confuse the oil tanker market

The night air strikes launched by Israel on Iran on Friday increased the ship figures and the contributions of oil carriers, and traders and investors expect turmoil in a wide range of world fleet. According to the Marex Group PLC data, future levy agreements for the month of July – bets at the future costs of transport from the Middle East to Asia – rose by 15%. The shares of oil tankers have also risen, while one of the world’s largest companies said they became more careful to rent their ships in the region. The fear of closing the street of Hormuz, Israel, launched strikes on targets across Iran on Friday, which includes core and military facilities. This process represents a major increase in the confrontation between the two opponents, as Tehran promised to “pay a very high price”. “It is currently like a risk allowance, because the owners will hesitate to send their ships to the wave as part of the usual job,” said Anopp broker, oil broker head that the threat of outbreak of a war in the Middle East is a fundamental factor in the shipping. These attacks have revived old worries in the oil and shipping markets that Iran could possibly try to close the street of hormuz, a waterway that could not be wrapped for a large part of the global oil shipping. Over the years, Tehran has repeatedly threatened to close this waterway, although there were good reasons for the belief that if it carried out his threat, it will not close it for long. But that does not exclude the possibility of harassing the commercial ships of the opponents of Iran, which makes sailing more dangerous and increases the caution of shipowners, which is the tactics that Tehran has already used. Companies recommend their ships to be careful. The Japanese freight companies “Nippon Yusen KK”, “Mitsui Osk Lines Lenes”, and “Kawasaki Kisen Kaisha Ltd.” is one of the first companies to issue instructions for his ships with my choice after nights. Among the Asian stocks are the shares of “Cosco Shiping Holdings Co” and “China Merchants Energy Shipping Co.” with more than 5% on Friday. In Europe, the Frontline PLC jumped 7.9% on the Oslo Stock Exchange. Lars Portad, CEO of the company running the “Frontelin” fleet, said they became “much more reluctant” in displaying their rental ships in the Middle East, while other market participants indicated that a large number of shipowners at the moment refused to rent it while evaluating the situation. The British naval warnings before the strikes occurred, the British fleet warned that any escalation could affect the delivery movement, including the street of hormuz, through which a large percentage of global oil and gas shipments passed through the sea. The UK’s Maritime Trade Operations Authority (UKMTO) – the party working as a link between the fleet and commercial ships – is rarely issued by general warnings of this kind. Similarly, the ‘Joint Maritime Information Center’, an information exchange center attached to the ‘joint naval forces’ -alliance, warned that the risk was increased due to hostilities, including the possibility of using biological marine passages. Parastad said that the cargo movement was organized in ‘small fleet’ during previous suspense periods, which went through the street of hormuz under the sea protection to ensure its safety. But such a procedure is absolutely ineffective – and therefore the shipping prices support – because oil tankers are forced to wait for the sea to cross instead of moving free, he said. The closure of the street of Hormuz, which is the entrance point and starting point for the upcoming oil tankers to download consignments of large producers such as Saudi Arabia, the Emirates and Kuwait – and even Iran itself – as an extremist option. Iran’s allies of oil -consuming countries need this important course to work normally. Although the closure is possible, Portad is unlikely to continue such a procedure. At least 10% of the giant oil tankers fleet in the world in the Persian Gulf at any time, with about 20 tankers crossing the street of hormuz daily. In an interview on Friday morning, Bustad indicated that the market would interact with each other based on the bonuses imposed by the insurance companies at war risks, as soon as its functions are clear. Negative scenarios in the oil transport market and explain that there are scenarios in which the turmoil can lead to negative effects on oil tankers markets, such as high crude prices, which weaken demand, or impose long -term restrictions on crude consignments from the Middle East. Nevertheless, Jayndo Krishna, director of the “Drewry Maritime Services” business, said that these strikes would benefit the support services that securely secured the passage of ships across the region. He added that the prices of loose cargo tankers could also benefit, suggesting that the Middle East contributes to more than 10% of the global bulk trade, which includes unpopular goods such as raw materials and minerals. Krishna concluded: “An additional grant for war risk will suddenly rise to and from the Middle East … and it takes time to reset the supply chains.”