Iran plans to ban foreign military vessels from transiting the Strait of Hormuz under a bilateral agreement being negotiated with Oman, raising maritime security tensions. The threat of naval restrictions comes as commercial tanker traffic through the strategic chokepoint drops significantly below its ten-day average.
Global market
Iran’s deputy foreign minister announced that Tehran will ban military vessels from transiting the Strait of Hormuz under a maritime agreement being negotiated with Oman. This potential restriction comes as commercial traffic through the waterway plummeted to seven tankers on Thursday, down from 17 the previous day and well below the ten-day average of 15 transits. Despite these logistical tensions, benchmark crude prices are heading for weekly losses. Brent crude fell 5.3% over the week to $89.17 per barrel, while WTI fell 4.3% to $83.19. In Asia’s green energy sector, three of China’s top solar manufacturers—Jinko Solar, JA Solar Technology, and Tongwei—reported deepening first-half losses due to severe industry-wide overcapacity and weakening domestic demand.
Russia & CIS
In regional trade, Uzbekistan is preparing to import petroleum products from Azerbaijan’s refineries to diversify its fuel supplies. This trade shift occurs as Russian Foreign Minister Sergey Lavrov stated that Ukrainian drone attacks on domestic refineries are intended to destabilize Russian society. Infrastructure risks remain high, with massive drone strikes on Donbas energy grids leaving parts of the Luhansk region without electricity, forcing hospitals to run on backup generators. Meanwhile, Nizhnekamskneftehim’s hexene production successfully reached its design capacity. On financial markets, the Moscow Exchange announced that shares of fuel retailer EuroTrans will be excluded from sectoral indices, while Mosenergo and Lenta will leave the IMOEX and RTSI indices on September 18.
Armenia
While Armenian media outlet News.am reported that Ukrainian drones launched their eighth strike of the year against one of Russia’s largest refineries, Armenia’s domestic fuel markets remained stable on August 28. Consumer tariffs for natural gas, petrol, and diesel did not fluctuate, insulated from both international market volatility and external infrastructure disruptions. This price protection is guaranteed by Armenia’s membership in the EAEU, which secures duty-free, uninterrupted imports of Russian natural gas and petroleum products at long-term fixed contract prices. This bilateral framework shields Armenian consumers from the volatile price fluctuations that characterize international market price assessments.