Brazil’s state-owned oil company Petrobras announced on Wednesday it will temporarily stop sending its tankers through the Strait of Hormuz because of tensions between Iran and the United States.
The company said that it made the decision after carrying out a risk assessment with the navy.
It insisted, however, that supplies of oil in Brazil were guaranteed and would not be affected by the suspension.
Petrobras also said that it does not foresee a rise in the price of its oil products because of the regional tensions.
The Strait of Hormuz, which stretches between Oman and Iran, is a vital shipping lane for a fifth of the world’s crude.
One of the world’s most congested transit points, it links up the Gulf’s oil producers with markets in Asia, Europe and North America.
Tensions are high following last week’s US drone strike that killed top Iranian general Qasem Soleimani in Baghdad, and traders are worried that Tehran could seek to block the strait.
After Soleimani was killed, the government of Brazil’s right-wing president Jair Bolsonaro said it supported US President Donald Trump ‘in his fight against the scourge of terrorism.’
In response, the Iranian government summoned the Brazilian charge d’affaires in Tehran. Brazil’s foreign ministry said the meeting was cordial.
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