US-blacklisted Iranian oil tanker scrapped in India
A US-blacklisted Iranian oil tanker, Contract II, has ended up as scrap at Alang, India—highlighting how old, sanctioned ships are running out of options.
The sale wrapped up on May 20 with Shantamani Enterprise LLP buying it under unusual terms: payment stretched over 180 days and done in UAE dirhams instead of the usual quick US dollar deal.
Tankers can't trade freely anymore
This isn't just about one ship. The $3.82 million sale price was slashed to match scrap metal rates because these vessels can't trade freely anymore.
With sanctions tightening on Iranian, Russian, and Venezuelan oil exports, more "dark fleet" tankers are being dismantled, with the number of sanctioned tankers increasing from 191 ships last year to nearly 900 now.
Once they hit the beach at Alang, the break-up starts around a month later to follow strict fuel and safety rules.
For anyone curious about how global politics can literally take ships off the sea, this is a real-world example unfolding right now.