Iran: No Mines Laid in Hormuz Strait Waters, Allowing Some Countries' Ships to Pass Through!

The International Energy Agency issued a statement on the 11th, saying that 32 member countries have unanimously agreed to release 400 million barrels of strategic oil reserves to address the global oil supply tightness caused by military strikes by the US and Israel against Iran.

However, this largest coordinated release in history has still failed to ease market concerns. After the opening of the next trading day following the start of trading on the evening of the 11th Eastern Time, Brent crude futures prices briefly rebounded above $100 per barrel.

This release of oil reserves is the largest in history. Market analysts are cautious in assessing its impact, with focus still on the progress of the US-Israel-Iran conflict and the passage status of the Strait of Hormuz.

Iran Deputy Foreign Minister: Allowing some countries’ ships to pass through the Strait of Hormuz

Iran has not laid mines in the Strait of Hormuz waters

According to the Islamic Republic News Agency on the 12th, Iranian Deputy Foreign Minister Ravanji said in an interview that Iran allows some countries’ ships to pass through the Strait of Hormuz. Ravanji stated that some countries have discussed navigation issues in the Strait of Hormuz with Iran, and Iran has cooperated with them, but countries involved in aggression against Iran do not have “safe passage rights” through the Strait. Ravanji also said that Iran has not laid mines in the waters of the Strait of Hormuz.

Iran’s newly appointed Supreme Leader, Khamenei, issued his first statement after taking office on the 12th, saying Iran will not give up revenge, will continue to use the blockade of the Strait of Hormuz as a means, and called on neighboring countries in the region to close US military bases as soon as possible.

US President Trump posted multiple messages on social media on the 10th, threatening Iran not to lay mines in the Strait of Hormuz, claiming that the US has destroyed 10 Iranian mine-laying vessels.

In his first post, Trump said that if Iran mines the Strait of Hormuz, it will face “unprecedented” military consequences. He also stated that the US military will “completely destroy any ships attempting to mine the Strait of Hormuz.” About 13 minutes later, Trump posted again, claiming that US forces had hit and destroyed 10 inactive Iranian mine-laying vessels in recent hours, and that further actions would continue.

Also on the 10th, the US Central Command posted on social media that US forces had eliminated several Iranian naval vessels near the Strait of Hormuz, including 16 mine-laying ships.

Very rare! Japan takes the lead in acting alone

According to Cankao Xiaoxi, citing Japan’s Daily News website on March 12, Japanese Prime Minister Suga Yoshihide announced on the 11th that due to the worsening Iran situation, Japan will release its oil reserves starting from the 16th. The plan is to first release a 15-day supply of private reserves, followed by a one-month national reserve release. This is the first time Japan has unilaterally released its national oil reserves. Before international energy agency (IEA) member countries reached a coordinated release consensus, Japan took the lead in acting alone, which is extremely rare.

This is the first release of oil reserves by Japan in about four years since the outbreak of the Russia-Ukraine conflict in 2022. At that time, the action was part of an IEA-coordinated release. Japan’s unilateral release of private reserves dates back to the second oil crisis of 1978-1979, and also occurred after the 2011 Great East Japan Earthquake.

According to Japan’s Ministry of Economy, Trade and Industry, by the end of 2025, Japan’s total oil reserves can sustain 254 days. The government plans to first reduce the legal reserve standard for private companies by 101 days, releasing a 15-day supply to the market; the national reserves, currently amounting to 146 days, will be released over a month (30 days) through an agreement. Additionally, Japan will utilize the “joint reserves” cooperation with oil-producing countries like Saudi Arabia (7 days).

Currently, 94% of Japan’s crude oil imports depend on Middle Eastern countries such as Saudi Arabia. Given that the Strait of Hormuz, which accounts for about 30% of exports, has been effectively blocked for over 10 days, concerns about Japan’s energy supply stability are increasing.

Suga Yoshihide explained, “From the end of this month, our crude oil imports are expected to decrease significantly.” She emphasized that Japan will cooperate with the G7 and IEA to ensure that supplies of gasoline and other petroleum products are unaffected. She also stated, “Before the international community makes an official release decision, Japan will act first to ease the supply and demand pressures in the international energy market.”

Limited impact of reserve release

According to Yicai, Rebecca Babin, senior energy trader and managing director at CIBC Private Wealth, said that the emergency reserve release agreement itself has limitations because crude oil does not enter the market immediately: “Auctioning, shipping, and actual injection all take time.” She believes that the speed of reserve oil release is practically limited.

During the largest coordinated release after the Russia-Ukraine conflict in 2022, the maximum actual injection rate was about 1.2 million barrels per day, which may already be the market’s expected upper limit. In comparison, the scale of supply disruption in the Middle East is much larger, estimated at about 16 million barrels per day. “Some shipping is still ongoing, while others are forced to reroute, mainly through Saudi Arabia’s east-west oil pipelines and a small amount through the UAE to Fujeirah. But estimates show that about 10 million barrels per day are affected or cannot pass efficiently,” she said.

According to CCTV News, on March 11 local time, the latest data from the American Automobile Association showed that the average US gasoline price rose to $3.58 per gallon, the highest in over 21 months. In just 11 days, prices increased by 20%, comparable to the price surge during the outbreak of the Russia-Ukraine conflict four years ago.

Reportedly, the Trump administration is planning to suspend the implementation of the Jones Act to curb rising oil prices. The Jones Act is a colloquial term for the core provisions of the Merchant Marine Act of 1920, which requires that shipping between US ports use vessels built in the US, owned by US companies, and operated by US crews.

Additionally, according to the US Department of the Treasury website, the US has issued new general licenses related to Russia. These licenses allow the sale of Russian crude oil and petroleum products loaded onto ships from March 12, until 00:01 Eastern Time on April 11, permitting the sale of such Russian oil and products during this period.

(Source: Daily Economic News)