Report: Thailand strikes deal with Iran for safe passage of Hormuz

Iran has agreed to allow Thai oil tankers to pass through the Strait of Hormuz, Prime Minister Anutin Charnvirakul was quoted as saying by the Bangkok Post on Saturday.

Thailand has negotiated a deal with Iran to secure safe passage for the vessels, Anutin said, adding that the move would help to ease concerns over fuel imports, without providing further details.

Thailand is one of many Asian countries particularly hard hit by the effective closure of the Strait of Hormuz, a narrow waterway between Iran and Oman that is key for some 20% of global oil supplies.

Shipping through the strait has come to a near standstill after Iran threatened to attack any ships deemed hostile, leaving hundreds of tankers and cargo ships stranded in the region since the US and Israel began attacking Iran last month.

Anutin also apologized to Thais for the "chaos caused by the management of the fuel situation," explaining that the disruption to oil supplies was lasting longer than expected.

During the first three weeks of the Iran war launched on February 28, the government had capped fuel prices through financial injections.

When the subsidies were withdrawn, a major price shock hit Thailand’s petrol stations on Wednesday evening and prices have continued to rise since then.

Anutin said an early end to the conflict was unlikely, which led the government to change its strategy.

He also called on citizens to save oil and keep calm, according to the Khaosod news site.