Thailand reached an agreement with Iran to ensure the safe passage of its oil tankers through the strategically vital Strait of Hormuz, in a move aimed at stabilizing fuel imports and easing market concerns following weeks of regional turmoil, according to CNN.
Prime Minister Anutin Charnvirakul announced on Saturday that the agreement will allow Thai vessels to transit the waterway more securely, helping restore confidence after significant disruptions earlier this month.
The deal comes in the wake of escalating conflict in the Middle East that began on February 28, severely impacting maritime traffic through one of the world’s most critical oil corridors. According to data, oil tanker traffic saw a sharp decline, with total shipments through the strait falling by as much as 95% between March 1 and 26.
The disruption has had far-reaching implications, particularly for Asian economies. According to the U.S. Energy Information Administration, more than 80% of crude oil and liquefied natural gas transported through the strait goes to Asia, making Southeast Asian countries the most vulnerable to any supply disruptions
In response to the crisis, imposed the Thai government temporary controls on diesel prices to shield consumers from volatility. However, prices were raised this week by 6 baht (approximately $0.18) per liter, reflecting mounting pressure on public finances.
Anutin acknowledged the strain on citizens and apologized for the inconvenience caused by price adjustments, expressing hope that the geopolitical crisis will prove short-lived. He emphasized that the government remains ready to adapt its policies to evolving conditions.
The urgency of the deal was underscored by recent security incidents in the region. A Thai cargo vessel was attacked in the strait earlier this month, with three crew members reported missing.
Foreign Minister Sihasak Phuangketkeow stated that Iranian authorities had located the vessel but had not confirmed the fate of the missing crew members.
Meanwhile, maritime security reports indicate a sharp rise in attacks and incidents. According to the UK Maritime Trade Operations, at least 24 commercial vessels, including 11 oil tankers, were targeted or involved in incidents in the Gulf of Oman and surrounding waters during March.
The agreement with Iran represents a practical attempt to contain the repercussions of the crisis and ensure the continuity of energy flows, at a time when global markets are facing uncertainty.
While the deal may provide short-term relief for Thailand’s energy security, broader risks remain tied to the continuity of tensions in the region. Any further escalation could again disrupt shipping lanes, drive up fuel costs, and amplify pressure on import-dependent economies.
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