Iran offers its own fully-insured ships for crude shipments

Tehran: Faced with problems of its customers not being able to import oil due to lack of adequate insurance for ships, National Iranian Oil Company has offered India and other countries the use of fully-insured Iranian vessels.

The countries purchasing Iranian oil can ship supplies through Iranian oil tankers that have full insurance cover, Mohammad-Ali Khatibi, Director of National Iranian Oil Company for International Affairs, said here.

He said factors like fundamental supply and demand issues, geopolitical issues and psychological concerns have had an impact on global market of crude oil.

Of these three, the geopolitical factor has had the most impact on the market, especially in recent days, he added. While Iran is one of the main oil suppliers for India, the recent sanctions imposed by the US and Europe have severely affected the shipments.

Even though India does not recognise these international sanctions, the financial sanctions have affected shipments to the country as ships carrying oil from Iran were previously insured by insurance companies from Europe.

All those international insurance companies have stopped insuring oil tankers coming from Iran.