Swiss trader Lytton moves stalled Iraqi oil tanker past Hormuz blockade

Baghdad (IraqiNews.com) – The highly tracked journey of the supertanker Agios Fanourios I has revealed the pivotal role played by an obscure Geneva-based Swiss trading company, Lytton, in successfully navigating the blockade at the Strait of Hormuz earlier this month.

The unpublicized involvement of the trading house underscores how the near-complete closure of the maritime chokepoint has created massive, high-risk profit centers for commodity firms willing to brave the ongoing conflict between Iran and the U.S.-led coalition.

According to sector insiders familiar with the matter, the vessel—loaded with nearly 2 million barrels of crude oil sourced from Iraq’s Basra fields—became a core focus for international energy analysts tracking data for signs of breaking the shipping freeze.

While the cargo was ultimately bound for state-run PetroVietnam Oil, Lytton handled the logistical backend, assuming the risk of moving the crude through the heavily monitored strait.

The financial incentives motivating small trading firms like Lytton to navigate the Persian Gulf blockade are extraordinary. Because exporting oil safely from Iraq’s southern terminals has become a major logistical bottleneck, state marketing entities have resorted to steep discounts to clear accumulated stocks.

• The Discount Margin: Lytton managed to secure the Iraqi crude at a massive $18 per barrel discount relative to global benchmarks.
• The Revenue Yield: Given the high pricing premiums being commanded for oil outside the Persian Gulf, the gross profit potential for the single supertanker run hovered near $60 million.
• Broader Market Trends: Iraq’s state oil marketing organization has reportedly dangled even steeper price cuts—reaching up to $33.40 per barrel—for risk-tolerant buyers willing to handle loading inside the Gulf. These massive margins are enabling top-tier houses like Vitol Group to carry out ship-to-ship (STS) transfers off Fujairah, recording unprecedented trading windows.

The journey of the Agios Fanourios I was far from smooth, revealing a multi-layered diplomatic and military gauntlet before the vessel reached open waters.

1. The Iranian Interceptions: While attempting to cross the Strait of Hormuz, the vessel was ordered to turn back twice by Iranian naval units. It was only allowed to proceed on its third attempt following intensive diplomatic interventions by the Iraqi government. The ship’s operator, Eastern Mediterranean Maritime, clarified that the tanker was never officially boarded or forced into Iran’s Bandar Abbas port.
2. The American Detainment: Upon exiting the strait on the night of May 10, the supertanker was immediately halted by the U.S. Navy on suspicions of carrying sanctioned Iranian oil.
3. The Diplomatic Resolution: PetroVietnam Oil dispatched an urgent appeal to the U.S. Naval Forces Central Command, emphasizing that the cargo was of “paramount importance” to the Vietnamese economy. Following a rigorous five-day maritime inspection by U.S. personnel, the vessel was officially cleared and permitted to resume its course to East Asia.

While the transaction on paper pointed to a $60 million windfall, industry experts note that Lytton’s net earnings were significantly reduced by soaring operational overheads. Due to the active conflict zone surrounding Iran, localized freight rates surged dramatically, costing between $35 million and $40 million to secure the single supertanker charter.

Additionally, unexpected demurrage fees accumulated during the five-day U.S. Navy inspection rapidly ate into the trading house’s margins.

Furthermore, compliance risks loom large for international operators attempting to repeat this model. The U.S. Department of the Treasury has issued strict advisories warning that paying transit or escort fees to Iranian authorities constitutes a direct sanction violation. Representatives close to Lytton and Eastern Mediterranean Maritime have explicitly stated that no such fees were paid to secure passage.

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المصدر: Iraqi News