Politics
Global oil, gas shipping costs surge as Iran vows to close Strait of Hormuz

SINGAPORE: Global oil and gas shipping rates soared, with supertanker costs in the Middle East hitting all-time highs, as the US-Iran conflict intensified after Tehran targeted ships passing through the Strait of Hormuz, according to shipping data and industry sources on Tuesday.
Shipping through the Strait of Hormuz between Iran and Oman, which carries around one-fifth of oil consumed globally as well as large quantities of liquefied natural gas, has ground to a near halt after vessels in the area were hit as Iran retaliated to US and Israeli strikes.
The disruption and fears of prolonged closure have caused oil and European natural gas prices to jump, with Brent crude futures up nearly 10% this week as the conflict triggered multiple oil and gas shutdowns in the Middle East.
The benchmark freight rate for the very large crude carriers (VLCCs) used to ship 2 million barrels of oil from the Middle East to China, also known as TD3, rose to an all-time high of W419 on the Worldscale industry measure used to calculate freight rates, on Monday, or $423,736 per day, LSEG data showed.

The rate doubled from Friday, extending gains from a six-year high last week, after the US and Israel attacked Iran and killed its Supreme Leader Ayatollah Khamenei on Saturday.
In retaliation, Iran has struck Gulf countries, prompting precautionary shutdowns at oil and gas facilities across the Middle East.
An Iranian Revolutionary Guards senior official said on Monday that the Strait of Hormuz is closed and Iran will fire on any ship trying to pass, Iranian media reported.
The US military’s Central Command said the Strait is not closed despite the Iranian statements, Fox News reported.
LNG shipping rates jump
Still, daily freight rates for LNG tankers jumped more than 40% on Monday after Qatar halted its production.

Atlantic rates rose to $61,500 per day on Monday, up 43%, or $18,750, from Friday, according to Spark Commodities, a pricing assessment agency for LNG shipping. Pacific rates rose to $41,000 per day, up 45%, or $12,750, from Friday.
Fraser Carson, principal analyst for global LNG at energy consultancy Wood Mackenzie, said spot daily LNG shipping rates could rise above $100,000 this week on tight supply.
“Vessel availability for the rest of March is considered weak as cargo operators try to work through the backlog created by weather disruptions during February,” he said.
“There will be very strong competition for any available vessels,” he added.
Until safe passage through the Strait of Hormuz can be assured, shipping will remain idle, Carson said.

An oil shipbroker who declined to be named due to company policy said it is very difficult to assess shipping rates in the Gulf as several shipowners have suspended operations indefinitely.
South Korean shipping firm Hyundai Glovis said on Tuesday it is preparing contingency plans including securing alternative routes and ports in response to the Middle East conflict.
South Korea’s maritime ministry has issued a notice to South Korean shippers with vessels sailing in the Middle East, asking them to refrain from business operations in the region, an official told Reuters on Tuesday.
The ministry is holding a meeting to discuss further safety measures following Iran’s threat to attack any ship passing through the Strait of Hormuz, the official added.
Politics
US-Iran talks could be held as early as Friday, says Trump

- No fixed timeline announced for truce: source.
- Trump says US to continue blockade despite truce extension.
- Iran says talks will be held after lifting of US naval blockade.
A second round of US-Iran talks could take place as early as Friday, the New York Post reported on Wednesday, citing President Donald Trump.
“It’s possible!” Trump reportedly told the Post by text message, when asked about sources in Pakistan — which mediated the first round of talks — saying that a second round was “expected in Islamabad within the next 36 to 72 hours.”
Trump on Tuesday extended a two-week truce in the war just as it was about to expire. A digital news outlet in Pakistan reported the three-day time frame for more talks without a source or further details.
However, Reuters, citing a source, reported that no fixed timeline has been announced for any long-term extension.
The US source said Trump was willing to extend the ceasefire with Iran by another three to five days. “It is not going to be an open-ended ceasefire,” the source added.
Uncertainty continues to cloud the second round of peace talks, as Washington and Tehran remain at odds on several issues, most notably the Strait of Hormuz.
Tehran closed the strait for all traffic after the US and Israel began strikes across Iran on February 28. Apart from closing Hormuz, Tehran also launched strikes against Israel and US bases across the Middle East.
The fighting ended on April 8 when Prime Minister Shehbaz Sharif announced a two-week ceasefire and invited both sides to Islamabad for talks, which concluded without a deal on a permanent end to the conflict.
Islamabad, however, continued its effort to bring both sides back to the negotiating table and ensure an extension in the ceasefire.
Ceasefire extended
Late Tuesday, US President Donald Trump announced extending the Iran ceasefire until an Iranian proposal was submitted and discussions were concluded.
Trump, in a post on Truth Social, said he was acting at the request of Pakistan to hold off attacks until Iranian leaders and representatives could come up with what he called a unified proposal.
However, Trump said the US Navy would continue its blockade of Iranian maritime trade, a measure Tehran considers an act of war.
While Washington has announced members of its delegation for the second round of talks, Tehran says it would return to the negotiating table only after the US lifts the naval blockade of its ports.
“As soon as they lift the blockade, the next round of negotiations will be held in Islamabad,” Aljazeera quoted Iran’s Ambassador to the UN Amir-Saeid Iravani as saying.
Meanwhile, Pakistani authorities said that Islamabad was in constant touch with the Iranian leadership and was pursuing the path of diplomacy and dialogue.
“Formal response from Iranian side about confirmation of delegation to attend Islamabad Peace Talks is still awaited,” Information Minister Attaullah Tarar wrote in a post on X on Tuesday.
Iran hails Pakistan’s efforts to end war
Iran’s foreign ministry spokesperson Esmaeil Baqaei said on Wednesday that the Islamic republic appreciates Pakistan’s efforts to end the Middle East war, without commenting on a ceasefire extension announced by the United States.
Iranian state broadcaster IRIB reported that Baqaei was asked by journalists to comment on the truce extension, which US President Donald Trump said he approved following a request by Pakistani mediators.
“While appreciating Pakistan’s efforts to end the imposed war and establish peace”, Baqaei stressed that Tehran “is taking the necessary measures to safeguard Iran’s national interests and security”
Politics
IRGC seizes Israeli ship, second vessel for violations in Strait of Hormuz

The Islamic Revolution Guards Corps (IRGC) Navy says it has intercepted and transferred to Iranian territorial waters two vessels for having committed violations in the Strait of Hormuz.
In a statement released on Wednesday, the IRGC identified the vessels as the MSC-Francesca, which it said belongs to the Israeli regime, and the Epaminodes.
The vessels, it said, were operating without authorization, committing repeated violations, tampering with navigation aid systems, and endangering maritime security in an attempt to exit the strait covertly.
“With the intelligence dominance of the forces, these vessels were identified and stopped in order to uphold the rights of the noble Iranian nation in the Strait of Hormuz,” the IRGC Navy said.
It added that the vessels have now been transferred to Iranian territorial waters for inspection of their cargo and documents.
The IRGC Navy reiterated that any attempt to disrupt the implementation of laws announced by Iran for transit through the Strait of Hormuz, or any activity inconsistent with safe passage through this strategic waterway, will be continuously monitored and met with decisive and legal action against violators.
Politics
South Korean fighter pilot fined for mid-air photos that caused crash

A South Korean fighter pilot has been ordered to pay 88 million won ($59,200) in damages over a 2021 mid-air collision he caused by trying to get photos and videos of himself flying, an official report said on Wednesday.
The pilot, whose identity was withheld, wanted to capture footage of his last sortie before reassignment, according to the report by the Board of Audit and Inspection.
While travelling at 578 kilometres per hour (359 mph), he had the pilot of a second plane and another colleague take snaps of him on their phones.
In search of the perfect shot, he flipped his jet and flew close to the other aircraft, resulting in a misjudgement that caused his left stabilator — a horizontal stabiliser on a plane’s tail — to collide with its wing.
There were no casualties, but the unsanctioned move caused 878 million won in damages.
The pilot’s manoeuvre, which had not been coordinated with others in his formation, caused the aircraft to “invert up to 137 degrees so that its upper side could be captured on video”, the report published on Wednesday said.
The defence ministry initially ordered him to pay the full amount but he appealed to the board, which reduced his liability to 10% of the total repair costs.
The board took into account that other pilots had previously conducted in-flight filming, and that he had still safely commanded the flight and returned to base without causing further damage.
“Since commissioning in 2010, the individual has served for an extended period as a fighter pilot, managing aircraft safely,” the report said.
While the report did not specify what type of aircraft was involved, the Yonhap news agency said it was an F-15K.
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