Thailand has reached an agreement with Iran to allow Thai oil vessels safe passage through the Strait of Hormuz, Prime Minister Anutin Charnvirakul announced on Saturday, 28th March.
“An agreement has been reached to allow Thai oil tankers to transit safely through the Strait of Hormuz,” Anutin said at a press conference. “With this agreement in place, there is greater confidence that disruptions like those seen in early March will not recur.”
The deal places Thailand among countries Iran considers friendly, including Bangladesh, China, India, Iraq, Malaysia, Pakistan, and Russia, while Japan is also in talks with Iran.
Iranian forces have significantly slowed shipping through the strait since the Middle East war began late last month. Commodities shipping through the Strait of Hormuz dropped 95% between 1st March and 26th March, according to the maritime tracking platform Kpler.
Iran’s Revolutionary Guards reported turning back three ships attempting to transit the strait, stating the route was closed for vessels linked to its enemies. Twenty-four commercial vessels, including 11 tankers, have been attacked or reported incidents in the Gulf, the Strait of Hormuz, or the Gulf of Oman this month, according to the British naval maritime security agency UKMTO.
Earlier this month, the Thai bulk carrier Mayuree Naree was attacked and ran aground off Iran’s Qeshm Island, leaving three crew members missing, according to Iran’s Tasnim news agency.
More than 80% of crude oil and liquefied natural gas passing through the Strait of Hormuz is destined for Asia, according to the US Energy Information Administration. Southeast Asian nations have felt the effects, with fuel supply difficulties and long lines at petrol stations becoming more frequent in Thailand.
“The government will continue to adapt to evolving situations and adjust measures to minimise the impact on the public,” Anutin added.
To mitigate the crude shortage, Thailand has extended support to farmers and vulnerable groups, provided low-interest loans to small businesses, encouraged the use of alternative fuel sources, and banned all oil exports except to Cambodia and Laos. As of 2024, Thailand produces nearly 418,000 barrels of oil per day, ranking 31st globally, and holds the 55th-largest crude reserves with almost 240 million barrels (Worldometers).
A fifth of the world’s crude shipments normally pass through the strait. Iran wields significant leverage and has threatened vessels it considers hostile, particularly those linked to the US and Israel.
The strait has become a focal point of the conflict, with the US demanding its reopening under the threat of further strikes, while Iran has warned of countermeasures. This disruption has hit net energy importers in Asia hardest, with the Philippines declaring a state of emergency due to the crisis. Analysts note that interruptions in the Strait of Hormuz have ripple effects on global energy markets, particularly for Asian nations reliant on Gulf oil supplies.
Thai officials have coordinated with Iranian authorities, providing vessel names to ensure safe transit. Anutin emphasised that the agreement restores confidence in supply chains critical to Thailand’s economy, which has faced rising fuel prices and supply strains since the conflict escalated. The deal is expected to ease Thailand’s energy crunch while broader negotiations continue over reopening the strategic chokepoint.
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