Malacca Strait

Iran’s oil exports are increasing after the US sanctions waiver, with over 20 million barrels of crude waiting in Asian waters, a 18% weekly rise. Most cargoes lack confirmed destinations, with many heading to Singapore or indicating possible ship-to-ship transfers in the Malacca Strait. The 60-day relief aims to boost Iran’s revenue and strengthen its economic position in negotiations with the US.

Thailand's government has revived a $30 billion 'Land Bridge' project to create a coast-to-coast corridor rivaling the Malacca Strait, aiming to transport goods between ports on opposite sides of the peninsula. The initiative, led by Prime Minister Anutin Charnvirakul, follows global disruptions like the Hormuz Strait closure and the Iran war, which exposed vulnerabilities in maritime trade routes. Local fisherman Chaiyaporn Arunrasamee opposes the project.

Japan has added Indonesia to its 'network of navies' following partnerships with Australia and the Philippines. Indonesia's strategic location, including control over the Malacca and Lombok straits, highlights its role in global trade, and Japan aims to enhance Indonesia's subsurface naval monitoring capabilities.

India is developing a US$9 billion megaport project on Great Nicobar island in the Andaman and Nicobar archipelago, designed to create a major transport hub with transhipment port, international airport, and logistical facilities. The project aims to address China's strategic concerns about sea route vulnerabilities, particularly the 'Malacca dilemma,' by providing alternative shipping routes. The development spans 166 sq km and is expected to take three decades to complete.

The U.S. blockade in the Gulf of Oman has denied Iran $4.8 billion in oil revenue by redirecting 40 vessels and blocking 31 tankers carrying 53 million barrels of oil. Iran is using older tankers as floating storage and longer routes to bypass U.S. interdiction, while the Pentagon emphasizes the economic pressure as a key tool in negotiations.

Indonesia is proposing a toll for transiting the Malacca Strait, a strategic maritime route. This is not the first time the country has considered such a measure, indicating ongoing interest in leveraging the strait's economic potential.

The International Energy Agency's head, Fatih Birol, warns Europe may have only six weeks of jet fuel left due to the Iran war blocking oil supplies through the Strait of Hormuz, risking flight cancellations and economic disruptions. He highlights severe global economic impacts, particularly on developing countries in Asia, Africa, and Latin America.