Admiral Tangsiri warns against unloading Iranian oil

Navy Rear Admiral Alireza Tangsiri, commander of the Islamic Revolution Guards Corps (IRGC) Navy, warned that any oil company unloading hundreds of thousands of barrels of seized Iranian oil sitting in a Greek tanker off the coast of Texas would be held accountable.

“We hereby declare that we would hold any oil company that sought to unload our crude from the vessel responsible and we also hold America responsible," Tangsiri said, according to Press TV. 

"The era of hit and run is over, and if they hit, they should expect to be struck back," Tangsiri added. 

The rear admiral's remarks came on the anniversary of Iran's confiscation of a British-flagged tanker in the Strait of Hormuz in 2019 after Britain had seized an Iranian oil tanker off Gibraltar. 

The confiscation came in response to the maliciousness of the British, and when our ships went towards that tanker, the escort helicopter came above the tanker, which we warned that if it does not land, we will shoot it, which it complied, and after that an escorting warship also approached our waters, which we also warned, if it does not move away from the area, it will be targeted, and it also followed the order," he recalled.  "England has a lot of maliciousness and is more malicious than America."

On July 19, The Wall Street Journal (WSJ) revealed that at least 800,000 barrels of seized Iranian oil remains untouched in US waters.

According to the paper, American firms are reluctant to buy the Iranian cargo, which is worth US$56 million as they fear potential reprisals from Iran.

“Companies with any exposure whatsoever in the Persian Gulf are literally afraid to do it,” said a Houston-based energy executive involved in the matter, citing worries “that the Iranians would take retribution against them.”

Another executive at a shipping company involved in lightering in the Gulf of Mexico also flagged concerns over retaliation. “I don’t know if anybody’s going to touch it,” the executive said, according to the INSTAPUNDIT.COM.

More people concerned with the issue have also told the WSJ that they don’t think the oil will ever be sold off. 

The impasse over the seized oil illustrates the difficulties the US government faces when it comes to enforcing sanctions against Iran.

All of the fuel is boarded on an oil tanker called Suez Rajan, which was seized by the US in April. The vessel was seized near southern Africa and anchored off the coast of Texas in May, while the Greek owner was charged with sanctions evasion.

A few days the tanker was seized, Iran's Navy seized a Marshall Islands-flagged oil tanker in the Sea of Oman, which was carrying Kuwaiti oil for the second largest energy company in the US.

The oil tanker, named Advantage Sweet, had been involved in a maritime accident with an Iranian fishing craft, which resulted in the injury and missing of a number of its crew.

After the collision, the oil tanker attempted to flee the scene in serious breach of international laws and regulations, which require provision of medical treatment and supply of proper and sufficient medicine to seamen in case of sickness or injury.

The Iranian fishermen managed to issue a distress call long after recovering from the shock.

Washington has claimed to have hijacked oil tankers carrying Iranian oil several times, claiming that the ships had been flouting US sanctions.

The US usually auctions off Iran’s stolen assets, claiming it would use the money to pay damages to alleged victims of the Islamic Republic's actions.

 

World must condemn Ukraine for using cluster munitions

This morning I was disgusted to the maximum after reading National Security Spokesman John Kirby saying, "They are using them appropriately," Kirby said. "They're using them effectively and they are actually having an impact on Russia's defensive formations and Russia's defensive maneuvering. I think I can leave it at that," he added. I want the world to condemn both, the United Stated for the supplying clusters and Ukraine for using the lethal bomb.

On July 16, 2023 I had posted a blog, its title was “US lust for carnage and destruction” and also stated, the decision by the United States to provide Ukraine with the M864 DPICM round is driven by one thing and one thing only lust for carnage and destruction. 

The White House has confirmed that Ukraine is using cluster bombs supplied by the United States against Russian forces. National Security Spokesman John Kirby said initial feedback suggested these were being used effectively on Russian defensive positions and operations.

It may be recalled that the cluster bombs scatter multiple bomblets and are banned by more than 100 states due to their threat to civilians. Despite the fact the US agreed to supply these to boost Ukrainian ammunition supplies.

Ukraine has promised the bombs will only be used to dislodge concentrations of Russian enemy soldiers.

"They are using them appropriately," Kirby said. "They're using them effectively and they are actually having an impact on Russia's defensive formations and Russia's defensive maneuvering. I think I can leave it at that."

The US decided to send cluster bombs after Ukraine warned that it was running out of ammunition during its summer counter-offensive, which has been slower and more costly than many had hoped.

President Joe Biden called the decision very difficult, while its allies the UK, Canada, New Zealand and Spain opposed their use.

The vast majority sent are artillery shells with a lower than 2.35% "dud rate", a reference to the percentage of bomblets which do not explode immediately and can remain a threat for years.

The weapons are effective when used against troops in trenches and fortified positions, as they render large areas too dangerous to move around in until cleared.

Russia has used similar cluster bombs in Ukraine since it launched its full-scale invasion last year, including in civilian areas.

Reacting to the US decision to send the bombs, Russian President Vladimir Putin said his country had similar weapons and they would be used "if they are used against us".

Oleksandr Syrskyi, the Ukrainian general in charge of operations in the country's east, told the BBC last week that his forces needed the weapons to inflict maximum damage on enemy infantry.

"We'd like to get very fast results, but in reality it's practically impossible. The more infantry who die here, the more their relatives back in Russia will ask their government 'why?'"

He added cluster bombs would not solve all our problems.

He also acknowledged that their use was controversial, but added, "If the Russians didn't use them, perhaps conscience would not allow us to do it too."

Russia hits Ukrainian grain storage for 4th day

According to Reuters, Russia pounded Ukrainian food export facilities for the fourth day in a row on Friday and practiced seizing ships in the Black Sea in an escalation of what Western leaders say is an attempt to wriggle out of sanctions by threatening a global food crisis.

The direct attacks on Ukraine's grain, a key part of the global food chain, followed a vow by Kyiv to defy Russia's naval blockade on its grain export ports following Moscow's withdrawal this week from an UN-brokered safe sea corridor agreement.

"Unfortunately, the grain terminals of an agricultural enterprise in Odesa region were hit. The enemy destroyed 100 tons of peas and 20 tons of barley," regional governor Oleh Kiper said on the Telegram messaging app.

Photographs released by the emergencies ministry showed a fire burning among crumpled metal buildings that appeared to be storehouses, and a badly damaged fire-fighting vehicle. Two people were injured, he said, while officials reported seven people killed in Russian air strikes elsewhere in Ukraine.

Moscow has described the attacks as revenge for a Ukrainian strike on a Russian-built bridge to Crimea - the Ukrainian Black Sea peninsula seized by Moscow in 2014.

Russia has said it would deem all ships heading for Ukrainian waters to be potentially carrying weapons, in what Washington called a signal it might attack civilian shipping. Kyiv responded by issuing a similar warning about ships headed to Russia.

The attacks on grain export infrastructure and perceived threat to shipping drove up prices of benchmark Chicago wheat futures on Friday towards their biggest weekly gain since the February 2022 invasion, as traders worried about supply.

The UN Security Council was due to meet later over the "humanitarian consequences" of Russia's withdrawal from the safe corridor deal, which aid groups say is vital to fend off hunger in poor countries.

Turkish President Tayyip Erdogan, the deal's sponsor alongside the UN, said he hoped planned talks with Russian President Vladimir Putin could lead to the restoration of the initiative.

The end of the deal could lead to rising global food prices, scarcity in some regions and potentially new waves of migration, Erdogan told reporters on a flight back from a trip to Gulf countries and northern Cyprus.

The West should listen to some of Russia's demands, he said. "We are aware that President Putin also has certain expectations from Western countries, and it is crucial for these countries to take action in this regard."

Moscow says it will not participate in the year-old grain deal without better terms for its own food and fertilizer sales.

Western leaders have accused Russia of seeking to loosen sanctions imposed over its invasion of Ukraine, which already exempt exports of Russian food. Russian grain has moved freely through the Black Sea to market throughout the conflict and traders say Russia is pouring wheat onto the market.

High utilization driving VLCC rate volatility

According to argus Longer voyages and limited vessel availability have increased volatility this year in very large crude carrier (VLCC) chartering costs.

Daily time-charter equivalent (TCE) earnings for the vessels, which carry around 2 million barrel oil, mostly on routes to China, have fluctuated considerably this year because of stretched supply.

More vessels on long-haul voyages from the Atlantic to east Asia has increased the time VLCCs have spent carrying oil this year and limited the availability of the vessels, meaning small regional changes in vessel supply have had outsized effects on freight levels.

The number of laden vessels has stayed considerably above the number of vessels in ballast, while TCE earnings on the key Bonny to Ningbo route for a scrubber-fitted VLCC have fluctuated by as much as US$80,000/day.

VLCCs loaded more crude west of the Suez Canal in April this year than at any time since January 2021, according to data from Vortexa. Voyages from Bonny in Nigeria to Ningbo, China are around 34 days, as compared to less than 20 days for Ras Tanura in Saudi Arabia to Ningbo, meaning more vessels were occupied for longer, reducing availability. Voyages from the US Gulf or Brazil to China take around 53 and 38 days, respectively.

Interest from Asian buyers in Atlantic basin cargoes increased because of favourable pricing and Saudi production cuts hitting demand for ships in the Mideast Gulf.

The availability of VLCCs has also been impacted by changes in trade flows stemming from the Russia-Ukraine conflict. More VLCCs are occupied on Atlantic voyages because of increased flows of US Gulf, Brazilian and West African oil to Europe to replace sanctioned Russian grades.

Historically these trades were mostly done by smaller Suezmax vessels. Some VLCCs going into the so-called dark fleet involved in transporting Russian oil has also probably meant fewer VLCCs for mainstream trades. Switching between Russian and non-Russian can also contribute to volatility in freight levels as the apparent supply of vessels can change quickly.

Despite a recent downward trend, VLCC earnings are likely to stay high and volatile with the Saudi cuts extended into August and very few new VLCCs joining the global fleet.

Six new VLCCs are on order for delivery this year, three are on order for 2025, 10 for 2026, and just two for 2027, according to data from shipbroker Braemar.

Higher newbuilding prices, full shipyards and uncertainty over future fuels and environmental regulations has kept new tanker orders low, although higher earnings are beginning to encourage a rise in ordering.

 

Putin's effort to stop grain exports from Ukraine termed disturbing by US lawmaker

Michael McCaul in a Thursday interview called Russian President Vladimir Putin’s effort to stop grain exports from flowing out of Ukraine disturbing, warning of possible implications for North Africa, Europe and the United States.

During an appearance on NewsNation, McCaul told Chief White House Correspondent Blake Burman he’s worried about a possible scenario where war escalation could happen between Russia and NATO member countries that border the Black Sea. 

The White House on Wednesday warned that Russia is preparing for possible attacks on civilian shipping vessels in the Black Sea, noting that Russian military forces have laid additional sea mines that border Ukrainian ports. 

“Oh, sure. We’ve been worried about that scenario, since the inception of the Russian invasion into Ukraine,” McCaul told Burman.  

“This is very, I think, disturbing on Putin’s part to shut off […] grain from the Black Sea into the White Sea, because this could cause a famine in Northern Africa and it could also raise prices not only in Europe, but the United States. I think it’s highly irresponsible what he’s doing, but he’s desperate now.”

McCaul also said Turkey has tried to negotiate with Putin on a solution, noting that Russia’s withdrawing from the Black Sea Grain Initiative will affect the global food market. 

“It affects the entire global food market. And again, I think the region that will get hit the hardest will be Northern Africa. It could set them off into a famine. I’ve met with the World Food Program,” McCaul added. “You know David Beasley was the head of that, he negotiated the deal with Putin. I hope we can make some progress, but the fact is, we will feel this here in the United States.”

McCaul’s remarks come days after Russia paused its participation in the Black Sea Grain Initiative, with Kremlin spokesperson Dmitry Peskov saying in a statement that it would suspend its part in the deal unless its demands are met to get its own food and fertilizer out to the world. 

“When the part of the Black Sea deal related to Russia is implemented, Russia will immediately return to the implementation of the deal,” Peskov said.

The deal, brokered last year by the United Nations and Turkey, became necessary after Russia invaded and blockaded Ukraine’s ports.

Wheat commodity futures have risen about 12% since Russia announced it would suspend the Black Sea Grain Initiative, which allowed Ukraine to export wheat from its southern ports via the Bosporus. Ukraine was one of the world’s largest wheat exporters before the Russian invasion.

Russia has also continued to attack Ukrainian port infrastructure and cities with missiles and drones, damaging the ability to export wheat if the deal were to resume. Those strikes have destroyed 60,000 tons of grain, Ukrainian President Volodymyr Zelensky said Wednesday.

“This attack proves that their target is not only Ukraine and not only the lives of our people. About a million tons of food is stored in the ports attacked today,” Zelensky argued. “This is the volume that should have been delivered to consumer countries in Africa and Asia long ago.”

Secretary of State Antony Blinken predicted the rising prices while criticizing the Russian move Monday.

“So the result of Russia’s action today — weaponizing food, using it as a tool, as a weapon in its war against Ukraine — will be to make food harder to come by in places that desperately need it, and have prices rise,” Blinken said. “We’re already seeing the market react to this as prices are going up.”

 

Saudi energy minister visits liquefied hydrogen carrier

Saudi Minister of Energy Prince Abdulaziz bin Salman made a visit to the world’s first liquefied hydrogen carrier at the Jeddah Islamic Port on Wednesday. He watched the functioning of the giant Japanese ship Suiso Frontier.

During the visit, Prince Abdulaziz was accompanied by Minister of Investment Eng. Khaled Al-Falih, Assistant Minister of Transport and Logistics Ahmed Al-Hassan, and the Japanese Consul General in Jeddah Izuru Shimura.

The ministers were briefed on the innovative technologies that were used by the Japanese ship manufacturer Kawasaki Heavy Industries (KHI) in building the carrier Suiso Frontier. Saudi Arabia has focused on hydrogen production as part of its plans to become global leader in the clean hydrogen production and export sector.

The ship arrived at the port on the occasion of the official visit of Japanese Prime Minister Fumio Kishida to Saudi Arabia recently, of which the main mission was to introduce Japanese technology. It also paved the way for societies that will use hydrogen (clean energy), to cooperate with the company, to transport large quantities of hydrogen at a low cost through its tankers that it developed and would support its distribution. This is within the framework of its efforts to establish global supply chains on a large-scale, fully commercial using it as a preferred carrier.

The ship was built and developed with the support of the Japanese government to transport large quantities of liquefied hydrogen by sea. It is 116 meters long, 19 meters wide, and carries a double tank with a capacity of 1,250 cubic meters to retain hydrogen and maintain it at a temperature of -253 degrees Celsius.

The ship’s arrival comes within the framework of supporting the efforts made by Saudi Arabia to stimulate the green hydrogen economy, and to enhance its global leadership in the energy sector. It is also to confirm the high readiness of its ports to receive this type of ship, which dedicates its position as a global logistics center, and confirms the high competitive capabilities possessed by the Jeddah Islamic Port and its role in supporting the logistical system.

It is noteworthy that the company successfully completed the first shipment and transportation of liquefied hydrogen from Australia to Japan in February 2022, and stressed the need to use technology to transport large quantities of hydrogen efficiently and safely, and to benefit from it as a viable next-generation energy.

Communities depend mostly on energy such as petroleum or natural gas, which causes a serious environmental problem represented in global warming and the risk of depleting natural resources. To avoid these effects, it is essential to invest in alternative sources such as hydrogen energy to secure a stable supply of energy and preserve the global environment.

"Ultimate clean energy" is the name given to hydrogen, and it can be used like petroleum as a fuel to operate cars, and like natural gas to generate electricity. What distinguishes hydrogen is that it does not emit carbon dioxide when it is burned to produce energy, unlike fossil fuels.

Kawasaki built the first LNG carriers in Japan and Asia in 1981 and has since become a leader in refrigerated technology for marine transportation. More than 40 years later, it built the world’s first liquefied hydrogen carrier, with an upgraded system to contain pressurized refrigerated cargo specifically for LH 2, and a carrier design based on safety requirements approved by the International Maritime Organization. Suiso Frontier carried from Australia to Japan its first cargo in February 2022. The 8,000 tons ship can transport large quantities of LH2 over long distances by sea.

It is noteworthy that Prince Abdulaziz bin Salman had recently signed a memorandum of understanding with Minister of Transport and Logistics Eng. Saleh Al-Jasser with the aim of redoubling efforts towards reducing carbon emissions in the railway sector, promoting the use of green hydrogen applications in transportation paths, and employing modern technologies to build safe, sustainable and environmentally friendly transport systems in accordance with the goals of Saudi Vision 2030.

IMF report on Pakistan: Indictment of Sharif government

The IMF staff level report on its new, short-term bailout loan of US$3 billion for Pakistan is a damning indictment of the Shehbaz Sharif government’s economic and financial policies that deepened the trust gap between Islamabad and the lender, and pushed the country towards the precipice in the last nine months, is the opening paragraph of DAWN editorial.

Policy missteps and breach of the previous Extended Fund Facility program had compelled the lender to halt the disbursement of funds, closing the door on other multilateral and bilateral financing.

The IMF document, released on Tuesday, also spells out the program’s goals, many of which, such as increased energy prices, will directly burden the people. It blames the Finance Ministry and State Bank for their frequent tinkering with the market-based exchange rate mechanism, leading to the growth of a large foreign exchange black market. It is also critical of the central bank for resisting a timely increase in interest rates.

That is not all. The report points out that the government balked at maintaining fiscal discipline, cutting non-essential spending, broadening the tax net, controlling the drivers of the power sector’s circular debt, and improving SOE governance.

In view of its experience with Pakistani authorities, the IMF has warned that continuation of the new program will depend on the implementation of fiscal discipline, a return to a market-determined exchange rate and proper functioning of the foreign exchange market, a tight monetary policy aimed at disinflation, and progress on structural reforms, particularly with regard to the energy sector, SOEs and climate resilience.

The report also cautions against the exceptionally high downside risks to the Stand-by Arrangement goals emanating from a tense political environment and potential deviation from agreed policies. Such risks could undermine the program’s implementation, and jeopardize macro-financial and external stability and debt sustainability, leading Pakistan to seek foreign debt restructuring.

Additionally, it says that external financing risks remain high, and delays in disbursement of external financing from IFIs and bilateral creditors would endanger the fragile external balance given limited buffers. Spillovers from Russia’s invasion of Ukraine through high food and fuel prices, and tighter global financial conditions continue to put pressure on the budget.

Highlighting Pakistan’s large gross financing needs of US$28.3 billion, including the US$6.4 billion current account deficit, during this fiscal year, it stresses that multilateral and bilateral support will remain critical for Pakistan beyond the upcoming elections and the SBA.

It is a foregone conclusion that the next government will need another, longer-term IMF program to resolve structural challenges and meet high external debt obligations over the next few years. For that to happen, the country has to achieve the SBA goals, come what may.