Fears of a major oil spill and fresh shipping disruptions in the Red Sea receded Aug. 29 after Iran-backed Houthi militants in Yemen agreed to allow rescue ships to access the Greek oil tanker still burning in the key trade chokepoint.

Access to the MV Delta Sounion crude tanker will be granted after “several countries have reached out to ask Ansarullah (Houthis) requesting a temporary truce for the entry of tugboats and rescue ships into the incident area,” Iran’s permanent mission to the United Nations said by e-mail on Aug. 29. “In consideration of humanitarian and environmental concerns, Ansarullah has consented to this request. The failure to provide aid and prevent an oil spill in the Red Sea stems from the negligence of certain countries, rather than concerns over the possibility of being targeted.”

A spokesman for the UN mission in New York said the statement came after a Pentagon comment on Aug. 27 that a third party had tried to send two tugs to help salvage the tanker and the Houthis threatened to attack them.

The Suezmax Sounion, transporting 1 million barrels of Basrah Heavy crude from Iraq to Greece, was hit by several projectiles and lost control Aug. 21, risking an environmental disaster if the oil leaked. Houthis spokesman Mohammad Abdul Salam confirmed on X, formerly Twitter, that access will be allowed after the Houthis reached out to several international organizations, including in Europe, to tow the burning ship.

The EU’s Red Sea naval mission Aspides has reported fires at several locations on the main deck of the ship from suspected Houthi explosives on Aug. 23.

Concerns that the Sounion could break up and cause a major spill were sparked by comments from the US Department of Defense on Aug. 27 that the ship appeared to be “leaking oil.” The UK Maritime Trading Operations had also previously said a nearby vessel reported the tanker was “believed to be drifting.”

But Aspides reiterated Aug. 29 that no oil spill has been seen from the tanker and that it remains anchored and not drifting.

“The European Union, through diplomatic efforts and engagements, is playing a crucial role in facilitating the salvage of MV Sounion,” Aspides said in a post on X, adding that it is “preparing to facilitate any courses of action in coordination with European authorities and neighboring countries.”

Motor Oil cargo

The tanker was carrying crude for Motor Oil Hellas 180,000 b/d Corinth refinery, in southern Greece, the company’s deputy CEO Petros Tzannetakis said in an earnings call Aug. 29.

He said, despite the loss or delay of the Basrah Heavy cargo and current disruptions to Libyan crude exports, the refinery had secured alternative supplies to run “flat out.”

Praising “several countries [who] have put a lot of international pressure,” Tzannetakis confirmed in the call that tug boats and rescue ships have been allowed to reach the ship to begin salvage operations.

Platts, part of S&P Global Commodity Insights, assessed the spot price for Iraq’s Basrah Heavy crude at $74.01/b on Aug. 29, a 41-cent/b premium to Iraq’s official selling price for the crude grade. The assessment values Sounion’s cargo at some $74 million.

The Houthis have launched attacks on more than 100 ships around the Red Sea and Gulf of Aden since the Israel-Hamas war broke out on Oct. 7, causing two ships to sink.

Major energy and shipping companies, including BP and Frontline, have altered their routes to sail around Africa to avoid Houthi attacks — a development that has led to more ton-mile demand and bunker consumption.

Platts assessed the Suezmax rate for transporting 140,000 metric tons of crude from the Persian Gulf to the UK Continent at $21.58/t Aug. 29, down 2.9% on the day.

Source: Platts