At least three Indian oil refiners and a major global energy company are preparing to avoid vessels named on Iran’s latest shipping blacklist, citing security and compliance concerns, according to a report by Reuters citing sources familiar with the matter.
Iran on Sunday released a list of 45 vessels it accused of violating its rules for navigating the Strait of Hormuz. Tehran warned that ships conducting cargo transfers with the blacklisted vessels could also face action.
The move threatens to disrupt the shuttle tanker operations used by Gulf oil producers, including Saudi Arabia and the UAE.
Under these arrangements, dedicated tankers transport crude, refined products and LNG through the Strait of Hormuz before transferring cargo to other vessels through ship-to-ship (STS) operations in the Gulf of Oman.
These arrangements have helped maintain energy flows from the region despite tighter restrictions on shipping through the strategic waterway amid the ongoing conflict.
Iran’s Persian Gulf Strait Authority said the listed vessels could face penalties including fines, detention and cargo confiscation.
Refiners assess alternatives to STS transfers
Indian refiners and other market participants are now reassessing their exposure to the blacklisted vessels. According to the report, one Indian refinery source said the company would avoid using chartered ships involved in STS transfers or other dealings with vessels deemed non-compliant by Iran.
Some of the blacklisted tankers are owned or chartered by major Gulf energy companies such as Saudi Aramco and Abu Dhabi National Oil Co.
Shipping data shows that these vessels have been involved in transporting Gulf energy cargoes for STS transfers near Fujairah in the UAE and Sohar in Oman.
Several charterers and shipping companies are evaluating whether to continue such operations. Some buyers are considering delivered cargo arrangements instead of purchasing oil on a free-on-board basis at STS locations.
Analysts expect compliance-focused buyers to steer clear of the affected vessels, although the trade is unlikely to stop entirely. Instead, shipments could shift to alternative tankers, counterparties or transfer locations, limiting the disruption to regional oil flows.
