[U.S. Reimposes Sanctions, 63 Million Barrels of Iranian Oil Stuck at Sea]
The U.S. Department of the Treasury suddenly revoked the exemption on Iran's oil exports. According to a U.S. official speaking to Reuters, the decision to cancel the exemption and reinstate sanctions was primarily due to Iran's recent attacks on vessels in the Strait of Hormuz, which violated the prior understanding reached between the U.S. and Iran. The official emphasized that Iran's actions in the Strait of Hormuz are unacceptable and must be met with countermeasures.
However, with the reimposition of sanctions, Iranian crude oil already at sea—en route to buyers—now faces serious trouble. As reported by Bloomberg, during the period when the U.S. granted exemptions allowing Iran’s oil exports, even enabling Iranian oil to re-enter the U.S. dollar system, Iran significantly increased its oil exports. Now, with the U.S. revoking Iran’s export exemption, millions of barrels of Iranian oil currently aboard tankers are caught in limbo.
Bloomberg cited maritime tracking data indicating that approximately 63 million barrels of Iranian oil are currently floating on the surface, en route somewhere. Some are heading toward Asia, while others have just left the Persian Gulf. However, none of these tankers display clear destinations. Bloomberg suggests that these floating Iranian oil cargoes may not yet have confirmed buyers. While orders are needed, the risk of purchasing Iranian oil has sharply risen due to the renewed U.S. sanctions, meaning these oil shipments could end up stranded at sea.
Bloomberg also noted that due to Iran’s recent series of attacks on tankers, many shipping companies have still not resumed their previous levels of maritime transport. On July 8 alone, only a small number of vessels passed through the Strait of Hormuz.
Original article: toutiao.com/article/1870137016869899/
Disclaimer: The views expressed in this article are solely those of the author.