Several oil companies to avoid using ships on Iran's blacklist over security concerns, sources say

At least three Indian oil refiners and a global energy major intend to cease using vessels on Iran's newly established blacklist, including for ship-to-ship transfers, citing security concerns. This decision comes after Tehran announced a list of 45 ships accused of violating its rules for passage through the Strait of Hormuz.

The escalation by Iran, which has threatened action against any vessels transferring loads with blacklisted ships, occurs six months into the US-Israeli war on Iran. The blacklist appears designed to disrupt the "shuttle runs" utilized by Gulf oil producers like the UAE and Saudi Arabia. These operations involve moving oil from the Gulf through Hormuz for transfer to other ships in the Gulf of Oman, thereby maintaining oil flows despite Iran's restrictions.

Sources indicate that vessels on the list could face fines, detention, and cargo confiscation. Some of the targeted tankers are owned or chartered by major players like Saudi Aramco and the Abu Dhabi National Oil Co (ADNOC). These ships have been instrumental in transporting crude, refined products, and liquefied natural gas (LNG) out of the Gulf for transfers off the coasts of the UAE and Oman.

While Saudi Aramco and ADNOC declined to comment, analysts suggest that compliance-sensitive buyers will likely avoid these vessels. However, the overall impact may be a rerouting of trade through alternative ships, counterparties, or transfer locations, rather than a complete cessation of activity. Shipping firms and charterers are reportedly evaluating Iran's warning and discussing the future of their ship-to-ship operations.

“

We will avoid our chartered vessels dealing or STS or anything to do with non-compliant ships for Middle Eastern cargoes.