Iraq and Pakistan struck separate agreements with Iran to secure the passage of oil and liquefied natural gas shipments through the Strait of Hormuz, according to sources familiar with the arrangements, as Tehran tightened its influence over the strategic waterway.
The deals came amid continuing regional tensions that have severely disrupted energy exports from the Gulf, a region responsible for supplying roughly one-fifth of the world’s oil and liquefied natural gas.
“Iran has shifted from blocking Hormuz to controlling access to it, Hormuz is no longer a neutral transit route, it is a controlled corridor,” Claudio Steuer of the Oxford Institute for Energy Studies said.
Reuters reported that Iraq secured safe passage for two very large crude carriers, each transporting about two million barrels of oil, through the strait on Sunday under an agreement with Tehran.
An Iraqi oil ministry official familiar with the discussions said Baghdad was seeking additional approvals from Iran to guarantee future oil shipments as the country moved to protect revenues that make up most of its national budget.
“Iraq is a close ally of Iran, and any deterioration in Iraq’s economy would also damage Iran’s economic interests in the country,” the official said.
Pakistan also reached a separate arrangement with Tehran that allowed two tankers carrying Qatari liquefied natural gas to continue towards Pakistan, according to industry sources cited by Reuters.
The sources said neither Iraq nor Pakistan made direct payments to Iran or the Islamic Revolutionary Guard Corps for the transit arrangements.
The agreements reflected growing concern among countries dependent on Gulf energy supplies as shipping disruptions pushed global oil and gas prices sharply higher.
“As more governments become willing to cut deals with Iran for passage, it risks normalising the idea that Iran will control the Strait of Hormuz on a more permanent basis,” Saul Kavonic of consultancy MST Marquee said.
Before the conflict escalated, about 3,000 vessels passed through the Strait of Hormuz every month. Shipping data now suggested traffic had fallen dramatically.
Reuters reported that Iran had begun formalising procedures for vessels seeking passage through the strait, requiring Iraqi authorities to submit detailed information about tankers, cargoes and destinations.
A Pakistani source involved in negotiations said dealing with Iranian authorities had sometimes proved difficult.
“The IRGC sometimes changes the goalposts, so it is hard to keep things on track, but we are working through it,” the source said.
Iran has insisted it intends to maintain influence over the Strait of Hormuz after the conflict and has demanded sanctions relief and reparations as part of any future agreement with the United States.
Erizia Rubyjeana
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