US blockade forces sanctioned Chinese tanker to return to Hormuz
What's the story
The US-sanctioned Chinese tanker, Rich Starry, has returned to the Strait of Hormuz after failing to breach a United States blockade on Iranian-linked vessels. The tanker had exited the Gulf on Tuesday but was unable to cross the blockade. The US Central Command confirmed that no ships crossed the blockade in its first 24 hours and six vessels were ordered by US forces to turn back toward Iranian ports.
Sanctioned vessel
Rich Starry was carrying Iranian oil
Rich Starry, a medium-range tanker owned by Shanghai Xuanrun Shipping Co., was sanctioned by the US for its dealings with Iran. The tanker was carrying around 250,000 barrels of methanol and had been loaded at Hamriyah port in the United Arab Emirates. A US destroyer also stopped two oil tankers from leaving Chabahar port on Tuesday as part of the blockade measures.
Shipping disruption
Traffic through Strait of Hormuz has dropped significantly
The blockade has further complicated matters for shippers, oil companies, and war risk insurers. Traffic through the Strait of Hormuz has dropped significantly from over 130 daily crossings before the US-Israel conflict with Iran began on February 28. Another US-sanctioned vessel, Very Large Crude Carrier Alicia, was seen entering the Gulf via the strait on Wednesday. According to Kpler statistics, the empty tanker is headed to Iraq on Thursday to load cargo.
Trade suspension
US completely halts economic trade with Iran by sea
The US has completely halted economic trade with Iran by sea amid the conflict. President Donald Trump announced this after peace talks in Islamabad between the US and Iran failed to reach an agreement. The Treasury Department also announced it does not plan to renew "the short-term authorization permitting the sale of Iranian oil...stranded at sea." The initial authorization allowed for the delivery and sale of Iranian crude loaded into ships before March 20. It will last until April 19.