Iran allows Iraqi ships through Strait of Hormuz

{"text":[[{"start":7.63,"text":"Iran’s military has said Iraqi ships can transit the Strait of Hormuz, giving the world’s fifth-largest oil producer access to the contested waterway whose effective closure over the past month has roiled energy markets. "}],[{"start":22.73,"text":"A tanker carrying Iraqi oil, the Ocean Thunder, passed through the strait close to the Iranian coast on Sunday, after loading 1mn barrels of Basrah Heavy crude on March 2, according to Kpler data. "}],[{"start":39.32,"text":"“Brotherly Iraq is exempt from any restrictions we have imposed on the Strait of Hormuz, as those restrictions only apply to hostile states,” an Iranian military spokesman said in a video published by state media on Saturday.  "}],[{"start":54.11,"text":"It was unclear whether he was referring to Iraqi-flagged or domiciled vessels, or ships carrying Iraqi cargo."}],[{"start":62.39,"text":"Tehran’s decision on Iraqi exports could allow as much as 3mn barrels a day of oil to be released to international markets, restoring some of the oil production halted after the US-Israeli war against Iran."}],[{"start":80.02,"text":"But much will depend on whether shipping companies agree to resume transit through the strait in response to Iran’s declaration. Cranking oil production back up again will also take some time. "}],[{"start":93.97,"text":"Iran had in effect closed the critical waterway to all but a handful of ships since the start of the US-Israel war against it on February 28. "}],[{"start":105.86,"text":"It has said it will allow “non-hostile vessels” to transit the strait, through which about a fifth of the world’s oil flowed before the outbreak of the war, and has permitted a trickle of vessels in recent days."}],[{"start":null,"text":"

"}],[{"start":120.25,"text":"Iraq has been plunged into economic crisis after the closure of the strait caused its oil exports to drop to a small fraction of its previous 3.4mn b/d. Production has been reduced by about two-thirds and storage tanks are full. "}],[{"start":139.48,"text":"The Gulf country was losing as much as $224mn a day in oil revenues in March, as a result of the strait’s closure and Iraq’s on-off connection to the Turkish port of Ceyhan by pipeline, according to one estimate. "}],[{"start":156.62,"text":"Iraq last week even began an effort to export a small amount of crude by road via neighbouring Syria to get around the Hormuz closure. "}],[{"start":166.26,"text":"Demand for sour crude has rocketed as the Middle East is ordinarily an important supplier of these grades. The region’s producers have been unable to ship their oil out of the Gulf, meaning Iraq is set to find ready buyers for its crude. "}],[{"start":182.64,"text":"Iraq is allowed to pump more oil now than before the conflict began. Opec+, the Saudi Arabia-led group of major oil producers, in March decided to increase its production quotas by 206,000 b/d in April. On Sunday the group agreed to increase by the same amount again in May. "}],[{"start":204.26999999999998,"text":"The move will have little impact on oil markets, as the only Opec+ countries with significant spare capacity available to deploy are hampered by the near closure of the Strait of Hormuz to international shipping. "}],[{"start":218.89999999999998,"text":"But if Iraq is able, it will be allowed to produce as much as 4.326mn b/d in May, without falling foul of Opec rules, which would offer a much-needed boost to its state finances. It is Opec’s second-largest producer."}],[{"start":236.24999999999997,"text":"Iraq has been drawn into the regional conflict as a shadow front has erupted between the US and Iran-backed Shia militias on Iraqi soil. Iran-backed Shia militias in Iraq have been attacking US diplomatic and military sites in the country since the start of the war. "}],[{"start":254.89999999999998,"text":"The US has launched attacks on those groups and is accused of carrying out air strikes against facilities belonging to the Popular Mobilization Forces (PMF), an umbrella of Shia militia groups under the command of Iraq’s security forces that is backed by the central government. "}],[{"start":271.92999999999995,"text":"Iran’s military spokesman called the Iraqi people “dear” in contrast to the “hostile” nations it has shut the strait to, and hailed Iraq’s Iran-backed Shia militias. He said in the video that Iran and Iraq’s people were in a “single trench”. "}],[{"start":290.60999999999996,"text":"On Friday, a French-owned container ship became the first owned by a major western shipping line to transit the contested passage safely since the war began. "}],[{"start":301.00999999999993,"text":"Chinese and Omani-linked vessels have also made it through, while Pakistan claimed to have struck a deal that would allow 20 ships to sail through under its flag. "}],[{"start":311.8499999999999,"text":"Additional reporting by Verity Ratcliffe, Steve Bernard and Jamie John in London"}],[{"start":327.0799999999999,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1775459762_7256.mp3"}