Iran conditionally reopens Strait of Hormuz
- Sydney (18 April)
Iran has conditionally reopened the Strait of Hormuz – a maritime passage that supports Persian Gulf oil exports – until at least 22 April, because Israel and Lebanon agreed to a 10-day ceasefire on 16 April.
“In line with the ceasefire in Lebanon, the passage of all commercial vessels through [the] Strait of Hormuz is declared completely open for the remaining period of [Iran’s ceasefire with the US],” Iranian Foreign Minister Abbas Araghchi said late on 17 April.
Iran’s Hormuz reopening may be short-lived. The country will close the Strait of Hormuz if the US maintains its blockade of Iranian ports, the speaker of Iran’s Parliament, Mohammad Ghalibaf, said.
The US Navy has blocked the movement of ships transiting through Iranian ports since 14 April, according to US Central Command (Centcom). It has directed 21 ships to return to Iran since the blockade began, Centcom said today.
Centcom will continue to blockade Iran until the US negotiates a peace deal with the country, US President Donald Trump said today.
Iran and the US initially agreed to halt hostilities and reopen the Strait of Hormuz for two weeks on 8 April to support peace negotiations. “The US, Iran, and their allies have agreed to an immediate ceasefire everywhere, including Lebanon, effective immediately,” Pakistan’s Prime Minister Shehbaz Sharif – who brokered the truce – said at the time.
But hours later, the deal broke down. Israeli Prime Minister Benjamin Netanyahu rejected Sharif’s claim and Israel bombed Lebanon. Iran responded to Israel’s attack by keeping the Strait of Hormuz closed.
“The Iran-US Ceasefire terms are clear and explicit: the US must choose – ceasefire or continued war via Israel. It cannot have both, Araghchi said on 9 April.
Oil prices fell today because of Iran’s Strait of Hormuz announcement. Brent crude futures traded at $91.87/barrel early on 18 April – Australian Eastern Standard Time – down from $99.39/barrel a day earlier.
Australian fuel prices may not immediately fall, despite the drop in oil futures prices. It could take up to 90 days for oil price decreases to flow into Australia, Prime Minister Anthony Albanese said today.
Australia currently has 46 days of petroleum reserves, 31 days of diesel reserves, and 30 days of jet fuel reserves on hand, Australia’s Minister for Energy Chris Bowen said. An additional 61 fuel cargo ships are on the way to Australia, Bowen added.
Australia imports refined oils – including petrol and diesel – from Asian economies, which partly rely on crude feedstock from the Persian Gulf. Albanese has agreed to work with leaders in Malaysia, Singapore, and Brunei to support stable energy flows over the last week.
Malaysian state-owned refiner Petronas plans to prioritise refined oil exports to Australia after meeting domestic requirements, Malaysia’s Prime Minister Anwar Ibrahim said on 16 April.
Australian Treasurer Jim Chalmers and New Zealand Finance Minister Nicola Willis also joined nine other Finance Ministers to oppose energy trade barriers and call for the reopening of the Strait of Hormuz, in a 15 April statement.
“We commit to avoiding, and call on all countries to avoid, protectionist actions, including unjustified export controls, stockpiling and other trade barriers in hydrocarbon and other supply chains,” the Ministers said.
By Avinash Govind