In the current geopolitical context of the world, the Strait of Hormuz is a hot volcano in the Middle East. The ongoing tension between Iran and Israel and the instability in the Red Sea have brought the supply chain of the global market to the brink of collapse. In such a moment of extreme uncertainty, Iran has brought a message of relief for Bangladesh. Tehran has said that Bangladeshi commercial ships will be able to navigate safely through the Strait of Hormuz, a very important and strategic waterway in the Middle East, as before. While most countries in the world are wary of using this route, this ‘special concession’ by Iran is being seen as a huge milestone for Bangladesh’s economy and energy security. MKSS News
The importance of the Strait of Hormuz and its current context:
About one-fifth of the world’s total oil and a large part of liquefied natural gas or LNG are transported through the Strait of Hormuz. This narrow waterway between Oman and Iran is called the ‘economic artery of the world’. Since the resumption of hostilities in the Middle East on February 28, this region has practically become a battlefield. Drone attacks, the roar of missiles and repeated warnings have made normal shipping through this route almost impossible. Western media have repeatedly claimed that Iran has completely closed the route. But Tehran has rejected this claim and announced its new strategic position.
Iran’s announcement and list of friendly countries:
Iranian Foreign Minister Abbas Araghchi recently clarified in an interview on state television that Iran has not completely closed the Strait. However, they are now keeping the route open for “selected” friendly countries. According to Araghchi, since the entire region is now at war, Iran will not allow ships of its enemy states and those who are directly supporting this war to pass through. However, they will provide safe escorts for some countries, including Bangladesh. Along with Bangladesh, China, Russia, Pakistan, Iraq and India are included in Iran’s list. Two Indian ships have already been able to safely pass through the Strait of Hormuz with this special privilege.
Why is this important for Bangladesh?
As a developing country, a large part of Bangladesh’s fuel oil comes from the Middle East. Long-distance shipping increases transportation costs manifold, which can directly increase fuel oil prices in the domestic market. With this decision by Iran, Bangladeshi ships will be able to use this important route without any fear of any obstruction or attack.
Experts believe that this will not only keep the fuel supply running, but also a major victory for Bangladesh’s neutral and strategic diplomatic position in the international arena. Iran is giving Bangladesh priority in using the Strait of Hormuz mainly for the sake of friendship.
Shipping data and global volatility picture:
According to statistics from global shipping information platform Lloyd’s List and data analytics firm Kepler, shipping traffic through this waterway has decreased incredibly from March 1 to March 25 of this year. While an average of 120 large commercial ships used to travel daily during normal times, only 155 ships have been able to pass through this route
in the last one month. That is, shipping traffic has decreased by about 95 percent. The main reason for this huge deficit is the increase in insurance costs and lack of security. Even in such a dire situation, getting the opportunity to sail Bangladeshi ships means getting full security from the Iranian armed forces. Tehran currently maintains full control over the Strait of Hormuz through its drone and missile systems.
The equation of the enemy and international politics:
Iran has made it clear that this route will remain closed to Israel or its allies until the war ends. Araghchi warned that those who consider Iran an adversary will face severe consequences if any of their ships dare to enter this route. Basically, in the face of the 15-point proposal of the United States and Israeli military pressure, Iran is using this
waterway as its main strategic tool. In this situation, by giving advantages to countries like Bangladesh, Iran wants to show the world that they are not enemies of international trade but are only protecting their sovereignty. Through this political move, Iran is putting pressure on the West by controlling the supply of LNG and oil in the international market, where the Strait of Hormuz is their trump card.
Future prospects and challenges:
How effective Iran’s concession will be for Bangladesh in the long run depends on the stability of the Middle East. If the scope of the war increases, it may become difficult to maintain this security arrangement. However, the coordination that Bangladesh has now established with Tehran deserves praise. Bangladesh’s shipping corporation and private ship owners will now be able to save both time and money by using this route. As a result of this decision, Bangladesh will at least be free from the cloud of the energy crisis that has gathered in the global market.
In conclusion, this crisis centered on the Strait of Hormuz is a major test for the global economy. This special opportunity given by Iran is not just a commercial route for Bangladesh, but it is also a major strategic safeguard. The way Bangladesh has been able to protect its interests during this global disaster through proper diplomatic relations is truly exemplary. In the coming days, the safe use of the Strait of Hormuz will play a major role in maintaining uninterrupted energy supply and stabilizing oil prices in the country’s market.
Source: NDTV