Saudi oil transport company stops shipments through Strait of Hormuz

The National Shipping Company of Saudi Arabia (Bahri) has temporarily suspended the passage of its oil tankers through the Strait of Hormuz after the Iranian rocket strike on US targets in Iraq, the Wall Street Journal reported yesterday.

Saudi Arabia owns 43 per cent of Bahri and the suspension of its operations may cause the kingdom financial losses. Saudi did not comment on the report.

About 21 million barrels of oil pass through the Strait of Hormuz every day in 2018, making up to 21 per cent of the global consumption of liquid petroleum. As a result, it is the largest passage for oil around the world.

Saudi Arabia is the third largest producer of crude oil in the world and produces ten million barrels every day and exports 6.9 million barrels every day.

The announced suspension was made after Iran struck US bases in Iraq following America’s assassination of its military commander Qassem Soleimani.

READ: Qatar, Iraq discuss ‘ways to resolve Gulf crisis’