About 20 million barrels per day of oil and refined products could be affected if shipping operations are disrupted along the Strait of Hormuz amid the continued tensions between Israel and Iran, according to analysts.
The Strait of Hormuz is a narrow water channel in the Arabian Gulf between Iran and Oman, where oil tankers carry large volumes of oil and refined products to different destinations from Gulf producers as well as from Iran and Iraq.
On Saturday the "closure" of the Strait was being seriously reviewed by Tehran, Iranian media reported, citing statements by Esmail Kosari, a member of the Tehran parliament's security commission. Iran in the past has threatened to close the strait for maritime traffic in retaliation for western pressure. Any closure could impact trade and oil supplies flowing to global markets.
“The Strait of Hormuz remains the critical chokepoint,” Jorge Leon, head of geopolitical analysis at Rystad Energy, said.
“Around 12 million barrels per day of crude oil pass through the strait, over 80 per cent of it bound for Asia. Including refined products, the total volume can reach up to 20 million barrels per day.”
While Saudi Arabia and the UAE have spare pipeline capacity to bypass the strait, it is limited, he said.
Saudi Arabia’s East-West pipeline and the UAE’s Habshan-Fujairah pipeline together can handle around half of the flow, he added.
“The strait is jointly controlled with Oman, and past tactics have included seizing or harassing tankers by jamming their GPS signals to draw them into Iranian waters. This increases the risks of navigating the route.”
Last year, Iran's Revolutionary Guard seized a container ship with links to Israel in the Strait of Hormuz.
Tensions across the Middle East rose on Friday after Israel launched a wave of strikes across Iran, killing senior military officials and hitting key nuclear sites.
Iran also launched retaliatory missile strikes on Israel into Saturday morning, killing at least three people and wounding dozens, raising concerns of a wider Middle East war.
Oil prices have surged in response to rise in tensions in the Middle East.
Brent and West Texas Intermediate (WTI), the gauge that tracks US crude, had jumped more than 13 per cent before settling at around 8 per cent higher on Friday.
“While Iran has threatened to block the strait before, their current weakened position makes this uncertain. There’s still a risk from Iran’s proxies like Houthi rebels and Hamas, who may retaliate,” Phil Flynn, senior market analyst at the Price Futures Group, said.
Last year, Houthi rebels have carried out attacks on ships passing through the Red Sea, disrupting maritime traffic and causing oil prices to rise on supplies worries.
Many shipping companies were forced to reroute and take a longer route around the Cape of Good Hope at the southern tip of Africa to transport cargo to Europe and other destinations.
Houthis said they launched attacks on ships, in solidarity with Hamas fighting against Israel in Gaza.
Shipping companies urged to take extra measures
“The situation is very tense, and we have reports that more shipowners are now exercising extra caution and are opting to stay away from the Red Sea and the Arabian Gulf,” Jakob P Larsen, chief safety and security officer with shipping association Bimco, told The National in a statement.
If the US is perceived to be involved in attacks, “the risk of escalation increases significantly,” which will impact freedom of navigation in the Red Sea and Strait of Hormuz.
“Such an escalation could include missile attacks on ships or laying of sea mines in the strait,” he added.
Bimco has advised shipowners to follow developments closely and implement ship defence measures as tensions continued to rise between Israel and Iran.
India's directorate general of shipping also urged Indian-flagged vessels and Indian seafarers transiting through the Strait of Hormuz "to exercise due caution while operating in or navigating through the region," according to an advisory on its website.
Dubai maritime and shipping company Gulf Navigation is closely monitoring the situation in the Strait of Hormuz and the wider region and the safety of “our crew, vessels, and cargo is our top priority,” it said in a statement to The National.
“In response to elevated regional tensions, we have implemented enhanced risk mitigation measures across our operations,” the company said.
These include, route and voyage planning in coordination with local authorities, continuous communication with regional and international maritime security centers, increased vigilance on board vessels, including elevated security protocols and crew preparedness training,
It is also coordinating with flag states and port authorities to ensure compliance and safe passage.
Oil at $100 per barrel
There is an elevated risk premium in the market that could push oil prices higher, analysts said.
“While a full blockade remains unlikely, the possibility, even if small, helps explain the elevated risk premium in the market today,” Mr Leon said.
Iman Nasseri, managing director of Middle East at FGE Nexant, expects oil to jump above $100 per barrel if the strait is closed.
"It seems like $70 to $80 (per barrel) would be the range for the short term if there is no closure of strait, if the strait gets closed, then we're looking at $90 and even above $100," Mr Nasseri told The National.
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Step by step
2070km to run
38 days
273,600 calories consumed
28kg of fruit
40kg of vegetables
45 pairs of running shoes
1 yoga matt
1 oxygen chamber
UAE currency: the story behind the money in your pockets
Fixtures
%3Cp%3E%3Cstrong%3EWednesday%2C%20April%203%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EArsenal%20v%20Luton%20Town%2C%2010.30pm%20(UAE)%3C%2Fp%3E%0A%3Cp%3EManchester%20City%20v%20Aston%20Villa%2C%2011.15pm%20(UAE)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EThursday%2C%20April%204%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3ELiverpool%20v%20Sheffield%20United%2C%2010.30pm%20(UAE)%3C%2Fp%3E%0A
MATCH INFO
Tottenham Hotspur 1
Kane (50')
Newcastle United 0
Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EDirect%20Debit%20System%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20Sept%202017%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20with%20a%20subsidiary%20in%20the%20UK%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20Undisclosed%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Elaine%20Jones%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%208%3Cbr%3E%3C%2Fp%3E%0A
The distance learning plan
Spring break will be from March 8 - 19
Public school pupils will undergo distance learning from March 22 - April 2. School hours will be 8.30am to 1.30pm
Staff will be trained in distance learning programmes from March 15 - 19
Teaching hours will be 8am to 2pm during distance learning
Pupils will return to school for normal lessons from April 5
US%20federal%20gun%20reform%20since%20Sandy%20Hook
%3Cp%3E-%20April%2017%2C%202013%3A%20A%20bipartisan-drafted%20bill%20to%20expand%20background%20checks%20and%20ban%20assault%20weapons%20fails%20in%20the%20Senate.%3C%2Fp%3E%0A%3Cp%3E-%20July%202015%3A%20Bill%20to%20require%20background%20checks%20for%20all%20gun%20sales%20is%20introduced%20in%20House%20of%20Representatives.%20It%20is%20not%20brought%20to%20a%20vote.%3C%2Fp%3E%0A%3Cp%3E-%20June%2012%2C%202016%3A%20Orlando%20shooting.%20Barack%20Obama%20calls%20on%20Congress%20to%20renew%20law%20prohibiting%20sale%20of%20assault-style%20weapons%20and%20high-capacity%20magazines.%3C%2Fp%3E%0A%3Cp%3E-%20October%201%2C%202017%3A%20Las%20Vegas%20shooting.%20US%20lawmakers%20call%20for%20banning%20bump-fire%20stocks%2C%20and%20some%20renew%20call%20for%20assault%20weapons%20ban.%3C%2Fp%3E%0A%3Cp%3E-%20February%2014%2C%202018%3A%20Seventeen%20pupils%20are%20killed%20and%2017%20are%20wounded%20during%20a%20mass%20shooting%20in%20Parkland%2C%20Florida.%3C%2Fp%3E%0A%3Cp%3E-%20December%2018%2C%202018%3A%20Donald%20Trump%20announces%20a%20ban%20on%20bump-fire%20stocks.%3C%2Fp%3E%0A%3Cp%3E-%20August%202019%3A%20US%20House%20passes%20law%20expanding%20background%20checks.%20It%20is%20not%20brought%20to%20a%20vote%20in%20the%20Senate.%3C%2Fp%3E%0A%3Cp%3E-%20April%2011%2C%202022%3A%20Joe%20Biden%20announces%20measures%20to%20crack%20down%20on%20hard-to-trace%20'ghost%20guns'.%3C%2Fp%3E%0A%3Cp%3E-%20May%2024%2C%202022%3A%20Nineteen%20children%20and%20two%20teachers%20are%20killed%20at%20an%20elementary%20school%20in%20Uvalde%2C%20Texas.%3C%2Fp%3E%0A%3Cp%3E-%20June%2025%2C%202022%3A%20Joe%20Biden%20signs%20into%20law%20the%20first%20federal%20gun-control%20bill%20in%20decades.%3C%2Fp%3E%0A
Lampedusa: Gateway to Europe
Pietro Bartolo and Lidia Tilotta
Quercus
Mohammed bin Zayed Majlis
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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F1 drivers' standings
1. Lewis Hamilton, Mercedes 281
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 222
4. Daniel Ricciardo, Red Bull 177
5. Kimi Raikkonen, Ferrari 138
6. Max Verstappen, Red Bull 93
7. Sergio Perez, Force India 86
8. Esteban Ocon, Force India 56
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%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EVarious%0D%3Cbr%3E%3Cstrong%3E%0D%3Cbr%3EStars%3A%20%3C%2Fstrong%3EHenry%20Cavill%2C%20Freya%20Allan%2C%20Anya%20Chalotra%3Cstrong%3E%0D%3Cbr%3E%0D%3Cbr%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
If you go
The flights
Emirates (www.emirates.com) and Etihad (www.etihad.com) both fly direct to Bengaluru, with return fares from Dh 1240. From Bengaluru airport, Coorg is a five-hour drive by car.
The hotels
The Tamara (www.thetamara.com) is located inside a working coffee plantation and offers individual villas with sprawling views of the hills (tariff from Dh1,300, including taxes and breakfast).
When to go
Coorg is an all-year destination, with the peak season for travel extending from the cooler months between October and March.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
LOVE%20AGAIN
%3Cp%3EDirector%3A%20Jim%20Strouse%3C%2Fp%3E%0A%3Cp%3EStars%3A%20Priyanka%20Chopra%20Jonas%2C%20Sam%20Heughan%2C%20Celine%20Dion%3C%2Fp%3E%0A%3Cp%3ERating%3A%202%2F5%3C%2Fp%3E%0A
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
The five pillars of Islam
2019 ASIAN CUP FINAL
Japan v Qatar
Friday, 6pm
Zayed Sports City Stadium, Abu Dhabi
Company profile
Name: One Good Thing
Founders: Bridgett Lau and Micheal Cooke
Based in: Dubai
Sector: e-commerce
Size: 5 employees
Stage: Looking for seed funding
Investors: Self-funded and seeking external investors
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
MATCH INFO
England 19 (Try: Tuilagi; Cons: Farrell; Pens: Ford (4)
New Zealand 7 (Try: Savea; Con: Mo'unga)
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Afcon 2019
SEMI-FINALS
Senegal v Tunisia, 8pm
Algeria v Nigeria, 11pm
Matches are live on BeIN Sports
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BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
UAE%20SQUAD
%3Cp%3E%0DJemma%20Eley%2C%20Maria%20Michailidou%2C%20Molly%20Fuller%2C%20Chloe%20Andrews%20(of%20Dubai%20College)%2C%20Eliza%20Petricola%2C%20Holly%20Guerin%2C%20Yasmin%20Craig%2C%20Caitlin%20Gowdy%20(Dubai%20English%20Speaking%20College)%2C%20Claire%20Janssen%2C%20Cristiana%20Morall%20(Jumeirah%20English%20Speaking%20School)%2C%20Tessa%20Mies%20(Jebel%20Ali%20School)%2C%20Mila%20Morgan%20(Cranleigh%20Abu%20Dhabi).%3C%2Fp%3E%0A
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NBA FINALS SO FAR
(Toronto lead 3-2 in best-of-seven series)
Game 1 Raptors 118 Warriors 109
Game 2 Raptors 104 Warriors 109
Game 3 Warriors 109 Raptors 123
Game 4 Warriors 92 Raptors 105
Game 5 Raptors 105 Warriors 106
Game 6 Thursday, at Oakland
Game 7 Sunday, at Toronto (if needed)
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter
Killing of Qassem Suleimani
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
