Iran will not close the Strait of Hormuz for now

(Patria) - Iran does not plan to close the Strait of Hormuz for now, following attacks by the US and Israel, stated Foreign Minister Abbas Araghchi in an interview with Al Jazeera.

"We do not intend to close the Strait of Hormuz for now, nor do we plan, at the current stage, to take any measures that would disrupt navigation (through the strait)," said the head of Iranian diplomacy.

Iran produces about 3.3 million barrels per day and about 1.3 million barrels of condensate and other liquid hydrocarbons. On Saturday, explosions were heard on the Iranian island of Kharg in the northern Persian Gulf, with terminals from which 90 percent of Iran's oil exports are shipped to foreign buyers. China is the largest buyer of Iranian oil.

Tensions in the Middle East escalated sharply after US and Israeli forces attacked Iran on Saturday morning. Tehran responded with attacks on Israel and US bases in countries along the Persian Gulf, including major oil and gas producers Qatar, Kuwait, and the United Arab Emirates.

Meanwhile, several tanker owners, oil companies, and trading houses have suspended the transit of oil, fuel, and liquefied natural gas through the strait, which is largely within Iranian territorial waters.

Satellite data showed a large number of ships anchored near key UAE ports such as Fujairah.

A group of maritime insurers, including Gard, Skuld, NorthStandard, London P&I Club, and American Club, announced that due to the conflict, they are canceling war risk coverage for ships in the Persian Gulf region.

Under these conditions, gas prices in Europe jumped by more than 20 percent on Monday, reaching their highest level in over a year.

Oil prices were up to 13 percent higher on the London market in the morning compared to the closing of trading at the end of last week, amounting to $82.37 per barrel. In the afternoon, the barrel was up 5.36 percent and stood at $78.23.

The Strait of Hormuz handles 20 million barrels of oil per day and approximately one-fifth of liquefied gas supplies, mainly from Qatar, according to data from the International Energy Agency (IEA) from 2024, Index reports.