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Iran’s blacklist threatens Gulf product STS flows

  • Spanish Market: Oil products
  • 25/08/26

Iran's new tanker blacklist threatens to restrict the ship-to-ship (STS) transfers that have helped keep Mideast Gulf product exports moving through the strait of Hormuz, with shipping sources warning that further additions could disrupt the workaround.

Listed vessels face penalties on future Hormuz transits, while ships carrying out STS transfers or other commercial operations with them could also be deemed non-compliant, Iran's Persian Gulf Strait Authority (PGSA) said on 24 August. Shipping sources warned that further additions to the list could reduce the pool of shuttle tankers available to ferry cargoes through the strait.

The workaround relies on shuttle tankers carrying cargoes through the strait before transferring them to onward vessels in safe-water STS operations off Oman.

At least two vessels on the PGSA's non-compliant list have recently carried out such operations involving oil products, ship-tracking data from Kpler show.

Adnoc-owned Jarnain carried out at least two STS transfers this year. It loaded at Ruwais in the UAE in early June before transferring around 600,000 bl of naphtha to the Tortuga, which delivered the cargo to South Korea's Yeosu refinery on 11 July.

Jarnain loaded again at Ruwais in early August before transferring around 700,000 bl of oil products for delivery to northwest Europe.

Another listed vessel, the Navig8 Messi, transferred around 500,000 bl of gasoil off Sohar in Oman on 9 August after loading at Ruwais on 24 July.

Vessels that have recently transited the strait of Hormuz along the Omani side are coming under closer scrutiny, as the market assesses whether voyage and STS histories could influence further additions to the PGSA list, shipping sources said.

This route through Hormuz is also considerably more expensive. Additional war risk premiums (AWRPs) for a Long Range 1 (LR1) tanker are currently six to seven times higher than on the Iranian-designated route, a shipbroker said.

No new formal charter party clauses or compliance guidance have emerged, but brokers said PGSA-listed vessels could become harder to book or use for STS operations.

Despite the growing risk, STS transfers remain an important option for moving oil products out of the Mideast Gulf while conventional transit through the strait of Hormuz remains disrupted. Seven vessels carried out STS activity in August, only slightly below eight in July, Kpler data showed.

At least four of the August vessels were carrying naphtha and one jet fuel, while three were Kuwaiti-owned and the remainder were Adnoc-chartered.

At least seven Adnoc-chartered vessels and seven Kuwaiti-owned vessels have carried out STS transfers since the activity picked up in May.

More product cargoes are set to move via the same STS route this month. Last week, Adnoc chartered at least three vessels to ship out 110,000t of naphtha and 60,000t of jet fuel over 28 August-3 September, underscoring the continued reliance on offshore transfers to keep product flows moving out of the region.


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