Iran’s Dominance in Commodity Trade Through Hormuz: Implications for Omani Investors and Businesses
PARIS: An analysis of maritime data reveals that since the onset of the recent conflict in the Middle East, 60% of commodity-bearing vessels transiting the Strait of Hormuz have either originated from Iran or were en route there. This situation has resulted in Iran exerting significant control over this vital shipping route, thereby disrupting global fuel supplies and causing fluctuations in energy markets. This action is largely viewed as retaliation against US-Israeli strikes that commenced the conflict on February 28.
From March 1 to the morning of April 3, global maritime analytics firm Kpler tracked 221 ships carrying oil, gas, or other commodities crossing the strait as they entered or exited the Gulf. An analysis by AFP, utilizing Kpler’s data, showed that many of these vessels made multiple passages, culminating in a total of 240 crossings.
Approximately 59% of these movements involved ships either departing from or bound for Iran. This percentage increases to 64% for vessels transporting cargo. Other countries contributing to the crossings included the UAE (20%), China (15%), India (14%), Saudi Arabia (8%), and Oman (8%), with Brazil and Iraq holding smaller shares at 6% and 5%, respectively.
Among the 118 crossings by cargo ships, 37 were transporting crude oil, totaling 8.45 million tonnes, all of which were leaving the Gulf. Notably, 30 of these tankers either originated from Iran or were sailing under its flag, with many heading to unspecified destinations. The few tankers carrying Iranian oil that disclosed their destinations were primarily bound for China, with the exception of one.
Additionally, seven other oil tankers that passed through the strait had loaded cargo from Saudi Arabia. One of these vessels, the Hong Kong-flagged New Vision, which transited on March 1, is expected to reach the French port of Le Havre on Saturday.
Further data revealed 40 crossings of ships carrying petroleum products, comprising 1.6 million tonnes of refined materials such as gas and LPG, 21 crossings with industrial materials (totaling 1 million tonnes of iron ore and steel), and six crossings with chemicals or petrochemicals, accounting for 211,000 tonnes of substances like methanol and ethylene.
Interestingly, while most crossings involved products originating from Iran, this trend did not apply to agricultural goods. Since March 1, six vessels, primarily from Brazil and Argentina, have entered the Gulf carrying 382,000 tonnes of soybeans and corn, all destined for Iran.
Special Analysis by Omanet | Navigate Oman’s Market
The situation in the Strait of Hormuz poses significant risks for businesses in Oman, particularly those reliant on stable energy supply chains. As Iran’s dominance over maritime crossings escalates, smart investors should consider diversifying their supply routes and exploring alternative markets, especially in light of the increased influence of Iranian oil heading primarily to China. Entrepreneurs must remain vigilant and adapt to shifting geopolitical dynamics, which could create both opportunities and vulnerabilities in Oman’s trade landscape.
