Iraq, Pakistan Secure 4 Million Barrels and 2 LNG Cargoes via Iran as Tehran Tightens Hormuz Control
Updated
Updated · Reuters · May 12
Iraq, Pakistan Secure 4 Million Barrels and 2 LNG Cargoes via Iran as Tehran Tightens Hormuz Control
9 articles · Updated · Reuters · May 12
Iraq and Pakistan have struck separate deals with Iran to move energy through Hormuz, including two Iraqi crude tankers carrying about 4 million barrels and two Qatari LNG cargoes bound for Pakistan.
The arrangements show Tehran has shifted from trying to block the strait to controlling access to it, requiring vessel documentation and routing transits under Iranian naval supervision, sources said.
Iraq is seeking approval for more sailings because oil provides 95% of its budget, while Pakistan—hit by high summer power demand and fuel costs—has faced hiccups as the IRGC "changes the goalposts," one source said.
Hormuz traffic has fallen to about 5% of its normal 3,000 vessels a month since the U.S.-Israeli war began, helping drive Brent up more than 50% and LNG prices in Europe and Asia up roughly 35% to 50%.
Other countries are exploring similar passage deals, raising the prospect that Iran's wartime grip on a route that normally carries 20% of global crude and LNG could become more entrenched.
Is Iran's 'tollbooth' on the Strait of Hormuz the end of U.S.-guaranteed free seas?
Will the Hormuz crisis unintentionally fast-track the world's permanent break from fossil fuels?
Weaponizing the Strait: How Iran’s 2026 Blockade Triggered the Largest Oil Supply Disruption in History
Overview
In May 2026, Iran asserted new control over the Strait of Hormuz, stopping tanker movements and causing a dramatic collapse in commercial shipping traffic. This action, set against ongoing conflicts with the United States and Israel, forced vessels to travel in 'dark' conditions, making tracking difficult and increasing maritime risks. The disruption led to the biggest oil supply shock in history, severely impacting global energy supplies and causing a surge in prices. Iran’s authority created a new transit system in the Strait, fundamentally changing global maritime trade and energy security, and highlighting the vulnerability of critical supply routes.