Two large oil tankers, one possibly carrying Iranian oil, were on fire on Friday after colliding near Singapore, the world's biggest refueling port, authorities and one of the tanker owners said.
Singapore is Asia's biggest oil trading hub and the world's largest bunkering port. Its surrounding waters are vital trade waterways between Asia and Europe and the Middle East and among the busiest global sea lanes. Malaysian and Singaporean waters are also locations where illicit Iranian oil shipments are transferred ship to ship and then carried to China, the major buyer of sanctioned Iranian oil.
The Singapore-flagged tanker Hafnia Nile and the Sao Tome and Principe-flagged tanker Ceres I were about 55 km (34 miles) northeast of the Singaporean island of Pedra Branca on the eastern approach to the Singapore Straits, the Maritime and Port Authority of Singapore (MPA) said.
The 22 crew of the Hafnia Nile and the 40 on the Ceres I were all accounted for, the MPA said, which was alerted to the fire at 6:15 a.m. (2215 GMT)
The owner of Hafnia Nile confirmed the vessel was involved in a collision with Chinese owned Ceres I.
Photographs released by the Singapore Navy showed thick black smoke billowing from one tanker and crew being rescued from life rafts and flown to hospital.
The environmental authorities in neighboring Malaysia said they had been told to prepare for potential oil spills.
Norway’s Gard, one of Hafnia Nile’s insurers, told Reuters it was too early to assess the environmental impact.
Navigational traffic had not been affected, although the status of the vessels or any pollution was unknown at present, a spokesperson at the UN's International Maritime Organization (IMO) said.
"No aerial surveillance has been conducted so far," the spokesperson said.
"Salvage and fire-fighting assets have been arranged by both vessel owners to support the fire-fighting efforts and subsequent towage of the vessels to safety."
The IMO spokesperson said a salvage team had been appointed and was en route to the area.
The 74,000 deadweight-tons capacity panamax tanker Hafnia Nile was carrying about 300,000 barrels of naphtha, according to ship-tracking data from Kpler and LSEG.
The Ceres I is a very large crude carrier supertanker, which ship-tracking data last showed was carrying around 2 million barrels of Iranian crude.
"The Ceres I has been a boat that has gone dark many times over the years," said Matt Stanley, head of market engagement EMEA & APAC with Kpler, referring to when vessels switch off their AIS tracking transponders.
Stanley said the last AIS signal the vessel transmitted around March indicated it was carrying Iranian crude, which the US has tried to curtail, including imposing sanctions on ports, vessels and refineries involved in the trade.
"She was at anchorage (on Friday). We can be fairly sure that she was carrying Iranian crude and was going to China," Stanley said.
Shadow fleet risks
In May, Brian Nelson, US Treasury's undersecretary for terrorism and financial intelligence visited Singapore and Malaysia to advance its work in countering financing and revenue generation by Iran and its proxies. During the trip he said the United States saw Iran's capacity to move its oil as reliant on service providers based in Malaysia, with oil being transferred near Singapore.
Iran has increased it oil shimemts to China at least fivefold since early 2021, now selling around 1.5 million barrels a day. It is believed that the Biden administration relaxed US sanction enforcement on Iranian oil, hoping to reach agreement on curtailing Tehran’s nuclear program.
S&P Global said in an April report that China buys around 90% of Iran's crude exports, often at discounted prices.
The Ceres I has not moved since July 11, according to LSEG shipping data.
The area Ceres I is anchored in is known to be used by so-called dark fleet ships for the transfer of Iranian oil in contravention of US sanctions, said Michelle Wiese Bockmann, principal analyst at Lloyd's List Intelligence.
"The Ceres I has repeatedly been involved in transferring or shipping Iranian oil in breach of US sanctions," she said.
Shipping sources have said the tanker was also involved in transporting Venezuelan oil, which is also under US sanctions, to China in recent years.
The China-based owner of the Ceres I could not immediately be reached for comment. China has repeatedly said it is opposed to unilateral sanctions.
Up to 850 oil tankers are estimated to operate the shadow fleet transporting oil from countries such as Iran and Venezuela as well as Russia, which has multiple restrictions on its oil exports.
With reporting by Reuters
What happened globally?
A global IT outage hit various industries, including airlines, hospitals, retailers, and other businesses. Nearly 1,400 flights were canceled on Friday, and essential banking, healthcare, and retail services were also affected.
Elon Musk, CEO of Tesla and X, has described Friday’s incident as the "biggest IT failure in history."
What caused the crisis?
Two significant issues involving Microsoft's widely used cloud systems have occurred in quick succession. First, an outage affected Microsoft clients using the Azure cloud service. Second, Windows devices experienced problems shortly after due to an update from CrowdStrike's Falcon antivirus software, designed to protect against malicious attacks.
Microsoft said it has addressed the root cause, but some services still face residual issues. Despite the fix, cyber-security experts warn that restoring full functionality will require significant effort.
Why is Iran unaffected by this global crisis?
Iran is unaffected by the global IT outage mainly because it uses a different system to control, monitor, and analyze industrial devices and processes.
Iran relies on SCADA (Supervisory Control and Data Acquisition) systems, which are crucial for managing infrastructure like power grids, water treatment facilities, and the petroleum industry, Sahar Tahvili, an AI researcher, told Iran International.
What exactly is SCADA, and how does it differ from a cloud system?
SCADA focuses on the local, real-time control and monitoring of physical systems. It operates within a limited connectivity framework, typically confined to a local or regional network, processing data in a central computer system to manage and optimize operations. Tahvili, the co-author of “Artificial Intelligence Methods for Optimization of the Software Testing Process,” told Iran International.
Conversely, a cloud system emphasizes remote access, extensive data storage, and powerful computing capabilities over the Internet. It easily scales to handle large volumes of data and users, providing broad connectivity and resource flexibility that extends beyond the constraints of local networks.
But why is Iran using a different system?
According to Tahvili, Iran relies on SCADA systems for industrial and facility-based processes primarily due to international sanctions and the lack of advanced infrastructure and technology management options.
Do other countries utilize SCADA systems?
Other countries might use SCADA mostly for managing the manufacturing process but not as the main system for managing and monitoring their industrial and infrastructure processes.
Is SCADA a domestic system? If not, how can Iran utilize it despite sanctions?
The expert explained that SCADA is not Iran's invention. It consists of hardware and software components that can be sourced from various international suppliers. In response to sanctions, Iran might have developed its own SCADA systems or adapted existing ones to meet its needs.
“This involves using local expertise to design, manufacture, and maintain SCADA components. Iran might procure SCADA components and software through third-party suppliers from countries that do not adhere to the same sanctions or through indirect channels, making it possible to bypass certain restrictions,” according to the AI researcher.
Iran seems to have deftly navigated the recent global IT chaos, but what is the unseen factor at play here?
Iran's National Center for Cyberspace presented the situation positively, stating, "No damage or disruption in services to the public has been reported in Iran. Due to Western sanctions, Iran has been barred from receiving these services for years. Consequently, local, alternative services were developed by the country's youth and experts and are currently operational."
The statement further highlighted, "Additionally, the country has developed robust capabilities in providing indigenous cloud services, which are now ready for export to other countries. Iran is prepared to share its expertise and export products in this field."
However, Tahvili holds a different perspective.
She remarked, "SCADA systems are often considered outdated and face several challenges, particularly regarding integration and compatibility with newer technologies such as cloud computing." As industries increasingly move towards advanced data analytics and cloud-based solutions, "the compatibility of SCADA systems becomes a significant concern," Tahvili explained. This integration challenge can "lead to inefficiencies and limit the ability to leverage cutting-edge technological advancements fully."
She further highlighted that "the connectivity of SCADA systems to corporate networks and the internet introduces severe security vulnerabilities." While remote monitoring and control are essential, this connectivity "exposes SCADA systems to external threats, including cyber-attacks and malicious software like the Stuxnet worm." Referring to the infamous Stuxnet incident in 2010, Tahvili pointed out that it "specifically targeted SCADA systems and caused substantial damage to Iran's nuclear program."
Tahvili emphasized the critical need for robust cybersecurity measures, stating, "Several security breaches have highlighted the need to protect these critical infrastructures." Despite SCADA systems being essential for Iran's industrial processes due to sanctions and limited infrastructure, their "outdated nature and compatibility issues with new technologies pose significant challenges." Additionally, she warned that "the security vulnerabilities arising from their connectivity to broader networks underscore the urgent need for enhanced security protocols to safeguard against potential threats."
Saying this in an interview with Khabar Online website in Tehran Fereidoun Majlesi added: "We have had enough tensions. It is now time for peace." In another odd statement the former diplomat said that political parties do not determine American foreign policy, perhaps hinting that Washington’s position regarding Iran transcends Republican or Democratic administrations.
The centrist website noted that the United States currently shows little interest in political changes in Iran or nuclear negotiations with Iranian officials. At the same time, Iran's President-elect Masoud Pezeshkian, in his latest statements, welcomed negotiations with Europe but expressed no interest in talks with the United States.
The discussion about what will follow the recent presidential elections in Iran is a recurrent theme in Tehran’s government-controlled media, that mostly tries to highlight Pezeshkian’s positive statements about the need to have good relations with other countries. But media outlets rarely mention his back-and-forth messages of support for Iran’s militant proxy forces.
Highlighting that Iran has lagged behind in development for 45 years, Majlesi stated that Iran needs to reduce tensions with the United States and Israel and demonstrate goodwill to reach a compromise and normalize the situation. Additionally, Iran should accept international banking protocols and conduct transactions using US dollars to facilitate international trade.
However, no media outlet mentions that this requires a drastic change in foreign policy that only Supreme Leader Ali Khamenei can authorize.
Meanwhile, in an interview with the Iranian Labor News Agency (ILNA), international relations analyst Reza Nasri said that if the Pezeshkian administration is looking for economic development, it should first seek security and stability in the region.
Nasri added that like Saudi officials, Pezeshkian believes that regional countries should not waste their financial resources on attritional conflicts. Majlesi had also pointed out that so far, Iran has been wasting its resources in wars against other regional and Muslim countries.
Nasri explained that Pezeshkian's declared foreign policy is based on the three pillars of balanced relations with regional states, constructive interaction to facilitate development and adopting policies that would not be costly for the people's livelihood. He also pointed out that Tehran and the United States should conduct negotiations at one point as both are major players in the region and cannot ignore each other.
To this end, he said, Pezeshkian should put together an agile foreign policy team of pragmatic officials mindful of the fact that unpredictable situations might be awaiting us six months later. The new Iranian foreign policy team should be prepared to face any scenario, he added.
Nonetheless, speaking about the support Pezeshkian has expressed for the "axis of resistance," – or Iran’s proxies - Nasri said that a solid and strong diplomacy by Iran as well as international support for the Palestinian cause, could turn the resistance into a legitimate "liberation movement."
Meanwhile, former ambassador to the United Kingdom Mohammad Hossein Adeli told the press in Tehran that "Iran is playing a game at the edge of a cliff," and added that "those who still talk about circumventing the sanctions are in fact thinking of the continuation of sanctions." He was likely referring to influential insiders who are widely believed to be profiting from the US oil export and international banking sanctions.
Adeli warned that "The slightest error in foreign policy can drag Iran into an instability that might affect the country's existence." He urged Pezeshkian to adopt a realistic approach and carefully assess the regional and international situation.
Adeli further cautioned that regional developments could lead Iran into a war benefiting Israel and the United States. He stressed the need for Pezeshkian to assemble a foreign policy team capable of navigating and avoiding such dangerous scenarios.