Saudi Arabia and Bahrain Prevent Iranian Ships from Entering Their Waters

Several marine insurance companies reported, citing local sources, that Saudi Arabia and Bahrain have prevented ships flying the Iranian flag from entering their regional waters; a move that could escalate tensions between Tehran and Riyadh. According to Reuters, Iran is seeking to increase its oil exports and despite the lifting of sanctions on its banking and insurance sectors last month under the nuclear agreement, it still faces insurance and financial obstacles. It is unlikely that preventing Iranian ships from entering certain ports in the Persian Gulf will harm international trade, but uncertainties regarding commercial barriers facing Tehran are increasing. Reuters adds that some insurance companies, citing local sources and reporters, announced that Saudi Arabia and Bahrain have barred Iranian-flagged vessels from entering their regional waters. The Norwegian marine insurance company 'Gard' stated that Bahrain does not allow ships that have stopped at Iranian ports among their last three ports of call to enter its regional waters. Saudi and Bahraini officials have not yet commented on this news. On the other hand, the marine insurance company 'West of England' stated: 'If an Iranian ship is among the last three ports of call of a vessel, Bahrain will not allow that ship to enter its regional waters.' Other marine insurance companies have not made such announcements and did not indicate whether there are new directives regarding this matter. While European oil companies such as Italy's Eni and France's Total are seeking to purchase oil from Iran, it seems that international marine insurance companies remain concerned about U.S. sanctions. Following the attack on the Saudi embassy and consulate in Iran, which occurred in protest against the execution of Shiekh Nimr al-Nimr, a Shia cleric in Saudi Arabia, Riyadh severed its diplomatic and commercial relations with Tehran. Subsequently, Bahrain and several other Arab countries also announced that they had cut diplomatic ties with Iran.