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Instability in Key Trade Route ‘Jeopardizes Trade and Energy Supplies’

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January 22, 2020-In a sign of the escalating tensions between the West and Iran, more countries are expressing support for the international coalition protecting shipping traffic through the Strait of Hormuz.

South Korea is the latest to announce a plan to send a naval destroyer to the strait. On Tuesday, the government said it is sending an independent and temporary mission to “guarantee the safety of our people and the freedom of navigation of our vessels,” according to a news report in Stars and Stripes. Iran had previously warned South Korea against joining a US-led coalition.

New European Naval Mission

On Monday, the governments of Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, and Portugal released a joint statement warning that rising instability in the Gulf and Strait of Hormuz is “jeopardizing trade and energy supplies with potential worldwide economic consequences.”

The eight European governments lent political support for a European-led maritime surveillance mission in Strait of Hormuz.

The new European mission, the EMASOH, said it would complement existing maritime security efforts to safeguard navigation.

Chokepoint for Global Trade

Located between Iran on one side and the UAE and Oman on the other, the narrow waterway is a crucial chokepoint for global trade. It is considered to be the world’s busiest shipping lane, essential for the export of Saudi Arabia’s oil. About a third of the world’s sea-traded oil goes through the strait, according to reporting by the Business Insider. That’s about 1.2 billion worth of oil a day.

shipping, Instability in Key Trade Route ‘Jeopardizes Trade and Energy Supplies’, Global Economic Report
Source: Marine Traffic via Business Insider

Free Flow of Commerce

Tensions have been rising in the key waterway. Last Summer, Iran attacked oil tankers sailing through the Strait of Hormuz, seized two British tankers and shot down an unmanned drone aircraft conducting surveillance.

In November, the U.S. Navy surged its support for the multinational coalition tasked with protecting shipping in the route. The International Maritime Security Construct includes the United Kingdom, Australia, the Kingdom of Bahrain, and the United States.

The United Kingdom’s Royal Navy is increasing escort support for its commercial ships, according to news reports.

Iran, meanwhile, has been conducting naval exercises with Russia and China. USNI News reports the multinational exercises took place in the Sea of Oman and the Indian Ocean, at the entrance to the Strait of Hormuz.

Instability in Key Trade Route ‘Jeopardizes Trade and Energy Supplies’, Global Economic ReportCopyright secured by Digiprove © 2020 Patti Mohr
shipping, Instability in Key Trade Route ‘Jeopardizes Trade and Energy Supplies’, Global Economic Report

Patti Mohr

Patti Mohr is a U.S.-based journalist. She writes about global diplomacy, economics, and infringements on individual freedom. Patti is the founder of the Global Economic Report. Her goal is to elevate journalistic principles and share the pursuit of truth in concert with others.

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