Oil Route News

United Arab Emirates-based maritime conglomerate DP World has announced that Ethiopia will become a shareholder of the Port of Berbera in Somaliland, a crucial site for Middle Eastern trade, strategically located along the oil route. As the biggest shareholder of the port of Berbera, DP World announced that it would hold 51 percent stake of the project, the Somalis, 30 percent, and Ethiopia, the remaining 19 percent. The government of Ethiopia will also invest in infrastructure to develop the Berbera Corridor as a trade gateway for the inland country, which is one of the fastest growing countries in the world. There are also plans to construct an additional berth at the Port of Berbera…

Saudi Arabia began naval war games including live fire exercises on Tuesday in the Gulf and Strait of Hormuz, the world's most important oil route, official media reported, a move that coincides with heightened tensions with regional rival Iran. Warships, speedboats, air navy aircraft, Marine Corps and special security naval units took part, state-run Saudi Press Agency (SPA) said. Live ammunition was fired during activities. The manoeuvres are aimed at testing combat readiness "in preparation for the protection of the marine interests of the Kingdom of Saudi Arabia against any possible aggression," reported SPA quoting commander of the exercises, Rear Admiral Majed bin Hazza'a Al-Qahtani. The drill is also being conducted in the Sea of Oman, SPA reported.

Iran is using its sea power in the Gulf to show it will not be cowed by Washington's newly assertive Arab allies, prompting critics to accuse Tehran of destabilising the region. Iranian ships fired shots at a Singapore-flagged tanker which it said damaged an Iranian oil platform, causing the vessel to flee, and seized a container ship in the Strait of Hormuz, the world's most important oil route, over a debt row. The incidents coincided with a push by Washington to reassure Gulf Arab monarchies that their interests would not be threatened by a nuclear accord that Tehran and world powers are trying to reach by the end of June. In an escalating confrontation with Saudi Arabia over Yemen…

According to a report from AP via Xinhua, Iran's navy has begun a 10-day drill in international waters near the strategic oil route that passes through the Strait of Hormuz. The exercises, dubbed "Velayat 90", could bring Iranian ships into proximity with US navy vessels in the area, according to the report. The exercise covers a 2,000-kmstretch of sea off the Strait of Hormuz, northern parts of the Indian Ocean and into the Gulf of Aden, near the entrance to the Red Sea. It is reported to be the first time that Iran's navy has conducted drills over such a vast area. (Source: AP-Xinhua)