LONDON, Reuters, Feb 9, 2016– Saudi Arabia and Bahrain have banned Iranian-flagged vessels from entering their waters and imposed other shipping restrictions, according to ship insurers citing local reports, potentially escalating tensions between Tehran and Riyadh.
A ban on Iranian ships in those ports is unlikely to affect international trade, although the uncertainty will add to trade hiccups for Iran.
Some ship insurers in recent days, citing reports from local agents and correspondents, said in notes to members that Saudi Arabia and Bahrain had banned all Iranian-flagged ships from entering their waters.
Norwegian ship insurer Gard said Bahrain had imposed a ban on any vessel that has visited Iran as one of its last three port calls.
Ship insurer West of England said separately: “An entered vessel has since been denied entry to Bahrain after visiting an Iranian port two port calls earlier, resulting in the fixture being cancelled.”
Other ship insurers had yet to issue any guidance or confirm there were new regulations in place.
While oil companies such as Italy’s Eni and France’s Total have been looking to book cargoes from Iran, international insurers are no nearer to resolving concerns over U.S. sanctions that remain in place.
Last month, Saudi Arabia cut ties with Iran after its Tehran embassy was attacked following Riyadh’s execution of a Shi’ite cleric.
In solidarity with Riyadh, Kuwait and Qatar subsequently pulled out their ambassadors from Tehran, and the United Arab Emirates downgraded its ties. Bahrain and two non-Gulf states, Djibouti and Sudan, severed relations completely.
