KUALA LUMPUR (April 20): Five tankers linked to Iran en route to Malaysia from the Gulf of Oman were rerouted after the US warned it may intercept ships suspected of carrying Iranian oil in international waters, The Wall Street Journal (WSJ) reported.
The WSJ, citing List Intelligence, said that the Iran-flagged Suezmax Kariz, loaded with about one million barrels of crude, changed course off Sri Lanka early last Friday after initially heading towards Malaysia and Singapore.
Another vessel, the sanctioned Andromeda, carrying roughly two million barrels of oil, also diverted in the Indian Ocean.
Meanwhile, two empty tankers — Amak and Elisabet — turned back near the Strait of Hormuz after nearing US Navy vessels, the report stated.
Aside from Kariz, the report did not identify the flags under which the four other vessels were sailing.
The Malaysian government said in late March that seven tankers owned by Malaysian firms, including those linked to Petroliam Nasional Bhd (PETRONAS), were awaiting clearance to transit the Strait of Hormuz safely.
On April 18, PETRONAS said that its chartered vessel Ocean Thunder, arrived in Malaysia with one million barrels of crude from Iraq. On April 20, Communications Minister Datuk Fahmi Fadzil said a second will arrive by the end of the week.
Oil prices have risen amid escalating tensions in the Middle East and uncertainty over prospects for renewed US-Iran negotiations. Brent crude — the global benchmark oil price — rose 4.64% to US$94.57 per barrel at the time of writing on Monday. The US-Iran war had earlier sent the oil prices above US$100 per barrel.
Over the weekend, US President Donald Trump reportedly said a US Navy vessel had attacked and seized an Iranian-flagged ship in the Gulf of Oman while also dispatching a senior delegation to Pakistan for talks. In response, Iran said it has no plans to engage in a new round of negotiations with the US and warned it would retaliate over the seizure.