Britain Fear Spike in Oil Prices due to Insurance Ban for Iranian Crude Tankers

BEIJING/TOKYO (Reuters) - Iran is shipping oil to China, its top buyer, despite a row over freight terms, and Japan has taken steps to resume imports in August as Tehran finds ways to get around Western sanctions on ship insurance for its drastically reduced shipments. European Union sanctions against Tehran have stopped European insurers, who dominate the marine insurance sector, from offering cover on Iranian crude. Industry watchers say the measure has proved to be the hardest hitting in the West's arsenal of sanctions aiming to persuade Iran to abandon its nuclear program. ...

By Katchum:Since Europe banned crude oil imports from Iran on 1 July 2012, the Baltic Dry Index has shot up 10% already from 1000 to 1103 (Chart 1). The reason for this spike isn't because Europe is banning crude oil imports from Iran, but rather the consequence of it. Due to this ban, Iran has renewed its threat to close the Strait of Hormuz.

EU insurance ban on tankers carrying Iranian crude prompts decision of Seoul, the first Asian country to stop oil purchases from Tehran

EU insurance ban on tankers carrying Iranian crude prompts decision of Seoul, the first Asian country to stop oil purchases from Tehran

TOKYO (Reuters) - At least two of Asia's four top buyers of Iranian crude will keep imports flowing, though at overall reduced rates, as they find ways around an EU ban on insuring tankers carrying the Islamic country's oil.

TOKYO (Reuters) - At least two of Asia's four top buyers of Iranian crude will keep imports flowing, though at overall reduced rates, as they find ways around an EU ban on insuring tankers carrying the Islamic country's oil. Asia needs oil to feed growing demand and top consumers are reluctant to entirely halt imports from Iran and depend entirely on top exporter Saudi Arabia, especially given that output from other alternative suppliers such as Libya and Iraq has not stabilized. ...

South Korea said Tuesday that it will halt all Iranian oil imports from the start of July in response to a European Union insurance ban on tankers carrying crude from Iran.

TOKYO/HONG KONG (Reuters) - Jap