From Jalopnik · Collin Woodard · · 1m
Iran Bribing Gulf States For Hormuz Passage
Analysts say Gulf nations may be paying Iran tolls to secure oil shipments through Hormuz.
In brief
Analysts say Gulf nations may be paying Iran tolls to secure oil shipments through Hormuz. Gulf countries reportedly pay Iran 10-20% of cargo value for safe passage through Hormuz to avoid US naval escorts. Originally reported by Jalopnik.
Oil Prices Rise
Brent crude and West Texas Intermediate prices both up 5% today with Brent near $105 a barrel and WTI close to $93.
Hormuz Ship Traffic
September saw 16.5 million barrels daily through Hormuz with some days exceeding pre-war average of 18 million.
Iran Toll Claims
Michelle Brohard says Gulf countries may be paying Iran 10-20% of cargo value for safe passage through Hormuz.
Iran's Oil Toll
Iran declared itself the Ticketmaster of oil in July despite international agreements requiring free navigation.
Toll Violation Risk
Iran's tolls would violate UN Convention on the Law of the Sea but country never ratified the agreement.
US Military Buildup
US preparing to deploy up to 10,000 troops in region as Republicans escalate conflict with Iran.
In short
Gulf countries reportedly pay Iran 10-20% of cargo value for safe passage through Hormuz to avoid US naval escorts.
