Iran’s offer to include South Africa on its list of “friendly” countries allowed to export oil through the Strait of Hormuz is something of a poisoned chalice.
The near-closure of the oil export chokepoint has sent oil prices soaring, and President Trump has threatened to bomb Iranian infrastructure unless vessels from all countries are allowed through it.
For South Africa, the concession is not really needed. The government says South Africa has no oil supply problem as much of the country’s imports come from Africa. Fuel prices will go up, not because of a shortage but because of international price movements.
Nevertheless, the Iranian offer remains. It was made by the Iranian ambassador to South Africa, Mansour Shakib Mehr. Freight News said the ambassador told a conference in Cape Town that Iran allowed Chinese- and India-bound supply to continue through the Strait provided that specific conditions were met, and that the same “special arrangement” could be extended to South Africa.
The New York Times has since reported that Pakistan, Malaysia and Iraq have also negotiated safe passage for oil tankers headed their way.
The downside to the Iranian offer is that it once again draws attention to South Africa’s friendly relations with Iran. This has been cited in angry references to South Africa by President Trump and his officials, has complicated trade negotiations and is among the factors threatening South Africa’s continued membership of the AGOA trade deal the United States has with African countries.
