Iran To Draw New “Restricted Zone” In Hormuz As Saudi Aramco Facility Hit Again, Oil Climbs
At a moment US officials have been boasting of more and more oil tankers making it through the Strait of Hormuz under US naval protection and support, Iran has previewed a new ‘restricted zone’ in the Gulf, which it says…
At a moment US officials have been boasting of more and more oil tankers making it through the Strait of Hormuz under US naval protection and support, Iran has previewed a new ‘restricted zone’ in the Gulf, which it says will be announced in the coming days.
The announcement is expected to include maps of the new shipping corridor through the Strait of Hormuz, likely to begin from where the US blockade of Iran starts and extending into areas of the Gulf, according to Iran’s Supreme National Security Council on Sunday.
“The maps of a new international corridor which lies in Iranian and Omani waters and in which Iran will have management have been agreed and should be signed in the coming days,” national security council official Mohsen Rezaei said.
“We will only commit to the Strait of Hormuz being open when they (the Americans) stop the sabotage, threats and attacks on Iran,“ he added. Per a Monday Bloomberg note:
Oil advances, with Brent futures trading above $97 a barrel, after US attacks on Iranian tankers and Tehran’s threat of a new restricted zone outside the Strait of Hormuz. European natural gas prices surge. Meanwhile, Ukraine is resigned to Russia’s war dragging on through another tough winter.
Also, in a latest Monday warning, Parliament Speaker Mohammad Bagher Ghalibaf has put US energy firms on notice, saying they could be targeted if Iranian tankers continue to be attacked (following precisely a rare US airstrike on an Iranian civilian tanker).
According to Ghalibaf’s words on X: “It’s simple: the oil and gas production chain here is sprawling, accessible, and exposed. American oil and gas companies across these waters and facilities share that exposure. Strike our assets and you get struck. We’ve already proven it. Ask the bases that are no longer viable.”
Brent reaches high since July 23
The top Iranian negotiator also said in a weekend speech, “The Americans must have understood that the era of proportionate responses has come to an end,” adding that “any aggression against Iran’s interests and security will receive a faster, more intense and more painful response.”
Across the Gulf, the UAE is voicing its frustration, vowing to establish alternative energy routes:
The United Arab Emirates is building alternative routes for its energy exports and trade to ensure they are not “held hostage” by the ongoing war between the U.S. and Iran, UAE presidential adviser Anwar Gargash said on Monday.
“Our energy exports will not be held hostage, nor will our trade and economic activity,” Gargash said before the Hili Forum in Abu Dhabi.
Meanwhile, not helping rising energy prices is fresh reporting out of Saudi Arabia of key oil facilities hit, likely by more Houthi attacks from neighboring Yemen.
“Saudi Aramco’s oil facilities in the Saudi Arabian city of Jizan have been attacked only a month after a separate strike temporarily knocked out some production at its refinery,” Financial Times reports. “The company’s oil infrastructure was hit on Monday and the damage was being assessed, said two people with knowledge of the matter.”
Tehran continues to see itself as having the ability to leverage economic blowback against Washington…
Jizan provides a convenient targeting opportunity for the Houthis given its closeness to the Yemeni border as a significant Saudi industrial city. The Iran-linked group has not immediately claimed responsibility for any fresh attacks on the kingdom, however.
Bloomberg reports Monday, “The latest attack didn’t cause major damage, the people said, asking not to be identified discussing confidential matters. The 400,000 barrel-a-day refinery remains shut following a strike in July, one of them said.”
The Houthis have sought to impose a blockade on Saudi Arabia’s Red Sea ports since July – and this has been coupled by sporadic major drone and missile attacks on Saudi oil sites. Ansar Allah is no doubt working in tandem with Tehran keep up the pressure on global energy markets.
Source Zerohedge.Com