Iranian tankers breach US naval blockade, moving 4.8 million barrels of crude ahead of Friday's deal
Two NITC supertankers carrying 3.8 million barrels of crude broke through the US naval perimeter late Tuesday, the first such movement in two months, as Washington and Tehran prepared to sign a framework accord Friday in Switzerland.
Tanker movements
Late Tuesday night, the monitoring service TankerTrackers reported that at least two Very Large Crude Carriers owned by the National Iranian Tanker Company (NITC), named Diona and Hero2, had passed the US Navy's blockade perimeter around Iranian ports. The two vessels were carrying a combined total of approximately 3.8 million barrels of Iranian crude. Hours later, a third Iranian tanker was reported to have exited the blockade area with an additional one million barrels.
At least two NITC supertankers, named Diona and Hero2, passed the US Navy blockade perimeter carrying a total of 3.8 million barrels of Iranian crude. These are the first crude oil exports from Iran in the last two months.
The tankers' movements mark the first confirmed departure of Iranian crude since the US naval blockade was imposed in April, according to the monitoring group. The third vessel, which was not named, brought the total crude volume that left the blockade zone to roughly 4.8 million barrels.
Market reaction
Following a Wall Street Journal report that the US will allow Iran to immediately resume oil and fuel sales once the accord is signed, crude prices fell sharply. Brent crude for August delivery dropped 5.17% to $78.87 per barrel, while West Texas Intermediate for July delivery fell 5.93% to $75.96. The prospect of a rapid return of Iranian barrels to the global market weighed on prices, reflecting expectations of increased supply.
- Electronic signing of MoU by the United States and Iran
- Two NITC tankers (Diona and Hero2) cross the US naval blockade with 3.8 million barrels of crude
- A third tanker exits the blockade zone with an additional 1 million barrels
- Formal signing ceremony in Burgenstock, Switzerland
The framework agreement
The memorandum of understanding was electronically signed by the two sides on Sunday, according to the US government. It will be formalised at a ceremony on Friday, 19 June, at a luxury hotel in Burgenstock, overlooking Lake Lucerne in central Switzerland. The location, chosen by mediators Pakistan and Qatar and endorsed by both Washington and Tehran, is difficult to access and therefore easier to secure.
The first talks aimed at reaching a final agreement within 60 days will most likely be held immediately after the signing.
Key provisions include a prolonged cessation of hostilities, the mutual lifting of blockades in the Strait of Hormuz, and preparations for extensive negotiations on Iran's nuclear programme. The sanctions relief covers not only petroleum exports but also essential banking, shipping, and insurance services required to facilitate those sales.
Conditions and cautions
A senior US official stated that Iran will be able to start selling oil immediately after the signing, but only if Tehran complies with all agreed terms. Those include ensuring free navigation through the Strait of Hormuz and not acquiring nuclear weapons. The official added that the sanctions relief is conditioned on continued compliance.
Additionally, Iran still does not have access to frozen assets estimated at over $100 billion. The United Against Nuclear Iran organisation confirmed that a supertanker carrying crude departed from the port of Chabahar, crossed the US blockade zone, and was sailing outside the Gulf of Oman with its position transmitter activated, a first since the US blockade began in April.
