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Iran says seizes two container ships attempting to exit Gulf

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Iran seized two container ​ships seeking to exit the Gulf via the Strait of Hormuz on Wednesday after firing on them and another ‌vessel, in its first seizures since war with the United States and Israel began in February.

Iran's semi-official Tasnim news agency reported the seizures and added its Revolutionary Guard Corps Navy had also warned that any disruption to order and safety in the strait would be considered a "red line".

SHIPS FIRED UPON

The IRGC accused the seized ​ships, the Panama-flagged MSC Francesca and Liberia-flagged Epaminondas, of operating without required permits and tampering with their navigation systems.

The Greek-operated Epaminondas ​had reported being fired upon about 15 nautical miles northwest of Oman. It said it had sustained damage ⁠to its bridge after being hit by gunfire and rocket-propelled grenades from an IRGC gunboat, according to the United Kingdom Maritime Trade ​Operations and maritime security sources.

Greek operator Technomar Shipping Inc was not available for comment. Epaminondas has a crew of 21 members made up of Ukrainians ​and Filipinos, according to the Greek coastguard which could not confirm the vessel's seizure.

Maritime security sources said that there were three people onboard the gunboat, adding the master of the ship said no radio contact was made prior to the attack and the vessel had received earlier permission to transit the strait.

MSC Francesca was ​hit by gunfire about eight nautical miles west of Iran, but added it was not damaged and its crew were safe, according to ​the UKMTO and the sources.

Operator MSC, the world's biggest container shipping group, did not respond to a Reuters request for immediate comment. A third, Liberia-flagged container ship ‌was ⁠fired upon in the same area but was not damaged and had resumed sailing, the sources said.

There was no immediate information regarding what, if any, cargo the ships were carrying.

OIL BOUNCES HIGHER

Oil prices reversed course to head higher after the incidents, with Brent crude futures up 1.0% at $99.46 a barrel and U.S. West Texas Intermediate futures up 0.85% to $90.43 as of 1143 GMT. "The Iran war and strait closing are unprecedented and there is no line of ​sight on a final outcome and ​timing, creating the potential for ⁠more headline noise and volatility," Jonathan Chappell, senior managing director at investment bank Evercore, wrote in a note.

IRAN IMPOSES STRAIT RESTRICTIONS

Tehran imposed restrictions on ships using the strait chokepoint at the southern end of the Gulf ​following U.S. and Israeli bombing attacks on Iran on Feb 28, bringing traffic to a virtual ​standstill.

Iranian shipping remained largely ⁠unfettered, however, empowered in part by a one-month U.S. sanctions waiver issued on March 20 allowing it to export crude oil and oil products.

Washington has since closed down that trade with a U.S. blockade of Iranian ships entering or exiting the Gulf.

The strait usually sees about 130 vessels a day ⁠enter and ​exit the Gulf and handles about 20% of the world's daily oil and liquefied ​natural gas supply.

That fell to about nine vessels per day after the war began, rising to about 20 during a brief reopening announced and then revoked by Iran last ​week, according to data provider AXS Marine.

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