Thailand and Iran agree to allow Thai oil tankers safe transit through the Strait of Hormuz, easing regional supply concerns amid Middle East conflict.
BANGKOK: Thailand has secured an agreement with Iran to ensure the safe passage of its oil vessels through the strategically vital Strait of Hormuz.
Prime Minister Anutin Charnvirakul announced the deal, stating it would alleviate concerns over fuel imports for the Southeast Asian nation.
“An agreement has been reached to allow Thai oil tankers to transit safely through the Strait of Hormuz,” Anutin told a news conference.
He expressed confidence that the arrangement would prevent a recurrence of the severe shipping disruptions witnessed in early March.
The Strait of Hormuz is a critical global chokepoint for energy shipments.
Over 80% of the crude oil and liquefied natural gas passing through it is destined for Asian markets, according to US Energy Information Administration data.
Regional fuel supply difficulties have been acute, forcing Thailand to initially cap diesel prices.
The cap was lifted this week, resulting in a price increase of 6 baht (approximately $0.18) per litre.
Anutin apologised for the public disruption caused by the government’s fuel price management measures.
He expressed hope that the underlying Middle East conflict, which began on February 28, would be short-lived.
“The government will continue to adapt to evolving situations and adjust measures to minimise the impact on the public,” Anutin added.
The security situation in the waterway remains perilous.
A Thai bulk carrier was attacked in the strait this month, with three of its crew members reported missing.
Foreign Minister Sihasak Phuangketkeow provided an update on the incident at the same news conference.
“Iran has very recently indicated that it reached the vessel, but cannot confirm the condition of the three crew members,” Sihasak said.
Shipping traffic through the strait has collapsed since the war began.
Commodities transit plunged by 95% between March 1 and 26, according to data from maritime tracking platform Kpler.
Iran’s Revolutionary Guards declared on Friday they had turned back three ships attempting to transit.
They stated the route was closed to vessels travelling to and from ports linked to Iran’s “enemies”.
The British naval maritime security agency UKMTO has reported 24 incidents involving commercial vessels in the region this month.
These include 11 tankers that were either attacked or reported security incidents in the Gulf, Strait of Hormuz, or Gulf of Oman.