2026.05.11

Iran Sends Response to US War Proposal via Pakistan Mediator

Iran has sent its response to the US proposal for ending the war through mediator Pakistan, with Tehran emphasizing maritime security in the Persian Gulf and Strait of Hormuz as a key condition. Washington’s reported 14-point proposal includes demands for Iran to halt uranium enrichment for at least 12 years and surrender roughly 440kg of 60%-enriched uranium, in exchange for sanctions relief, release of frozen assets, and an end to the US naval blockade. Pakistan confirmed receipt of Iran’s reply and is expected to relay it to Washington in the coming days, as pressure mounts to resolve the Hormuz crisis that has disrupted global energy flows and pushed fuel prices sharply higher. Analysts said the next few days will be critical for determining whether negotiations can produce a breakthrough and prevent further escalation in the region.

US Fires on Iranian Tankers to Enforce Naval Blockade

US forces struck two Iranian crude tankers, the Sea Star III and Sevda, to prevent them from reaching Iranian ports as Washington intensified enforcement of its naval blockade on Iran’s oil trade. The incidents followed a similar US action earlier in the week and came amid escalating tensions around the Strait of Hormuz, where both the US and Iran are imposing rival maritime restrictions.

Cargo Vessel Attacked by Drone in Qatari Waters

Qatar said a cargo vessel traveling from Abu Dhabi was struck by a drone northeast of Mesaieed port on Sunday, causing a limited fire that was quickly contained without injuries. The UK Maritime Trade Operations (UKMTO) earlier reported that a bulk carrier had been hit by an unknown projectile about 23 nautical miles northeast of Doha, with authorities still investigating the source of the attack. Despite the tensions, a separate Qatari LNG tanker successfully transited Hormuz toward Pakistan the same day.

Iran Denies Oil Leak Reports Near Key Kharg Island Export Terminal

Iran’s Oil Terminals Company denied reports of an oil leak near Kharg Island, the country’s main crude export hub, after satellite images appeared to show a large oil slick west of the island earlier this week. Iranian officials said inspections of storage tanks, pipelines, loading facilities, and nearby tankers found no evidence of leakage, while regional marine pollution body MEMAC also reported no signs of contamination. Authorities added that additional field checks and laboratory testing detected “not even the smallest trace” of an oil spill in the area.

Iraq Sharpens June Crude Premiums to Asia

Iraq sharply raised its June official selling prices (OSPs) for Asian buyers, reflecting ongoing tightness in Middle Eastern crude markets caused by the Hormuz crisis. State marketer SOMO set Basrah Medium crude at a premium of $4.30/bbl over the Oman/Dubai average, up from the previous month’s pricing level, while Basrah Heavy was set at a $2.20/bbl premium.

UAE Uses Greek Tankers and STS Transfers to Keep Hormuz Oil Flowing

UAE producer Adnoc has been working with Greek and regional shipowners to continue crude exports through the Strait of Hormuz despite growing security risks and shipping restrictions. VLCCs including Hafeet, Olympic Luck and Aliakmon I were used to move Upper Zakum and Das crude, with some cargoes transferred via STS operations outside the Gulf or sent to Oman for storage before heading to Asia. Suezmax tankers Odessa and Zouzou N also carried Upper Zakum crude toward South Korea.

Small US Trader Breaks Into Venezuela Oil Market Dominated by Vitol and Trafigura

Florida-based George E. Warren LLC has entered Venezuela’s revived oil trade, exporting 1 million barrels of crude this month in its first known deal since Washington eased sanctions earlier this year. The move marks a rare breakthrough into a market largely dominated by commodity giants Vitol and Trafigura following the removal of former Venezuelan President Nicolas Maduro. Venezuela’s oil exports have surged to seven-year highs as US-backed policy changes reopened global access to PDVSA crude, with April shipments reaching nearly 1.2 million bpd. The cargo loaded onto the tanker Poliegos is officially bound for Singapore, though traders say the final destination could still change as Venezuelan crude flows continue to rapidly reshape amid the global energy crisis.

VLCC and Suezmax Orders Hit Record Pace Despite Surging Ship Values

VLCC and suezmax tanker orders reached near-record levels in the first quarter of 2026, with 85 VLCCs and 58 suezmaxes ordered, according to BRS Shipbrokers. Strong crude transport demand, rising output from OPEC+, Brazil, Guyana and Kazakhstan, plus Europe’s avoidance of Russian oil, have fueled the ordering boom. The surge comes even as tanker asset prices continue climbing, with five-year-old vessels now valued above equivalent newbuilding prices. BRS noted that aggressive fleet expansion by South Korea’s Sinokor also helped drive the VLCC ordering frenzy.