Japan's Shipping Companies Suspend Operations in Persian Gulf

Japan's Shipping Companies Suspend Operations in Persian Gulf
Source: Bloomberg Business

Japanese shipping companies have suspended operations in the Persian Gulf as the military conflict in Iran escalates.

Nippon Yusen KK temporarily halted its operated vessels from traveling through the Strait of Hormuz, said a spokesperson. Kawasaki Kisen Kaisha Ltd. has instructed its boats in the Persian Gulf to remain on standby, according to a spokesperson. Mitsui OSK Line Ltd. ordered its vessels to wait in safe waters.

Oil tankers are increasingly avoiding the narrow Hormuz shipping strait, with Iranian media reporting that the passage is "practically closed." Earlier, the US warned ships to stay away from the Persian Gulf and Arabian Sea, specifically 30 nautical miles from US military assets.

Japan depends on the Middle East for roughly 90% of its crude oil imports. An Idemitsu Kosan Co. spokesperson said that there had been no impact on supplies to Japan as of Saturday night.

"The situation is changing rapidly, and we are monitoring it closely," the spokesperson said.

A spokesperson for Cosmo Energy Holdings Co. also said there had been no immediate problems with crude oil supply.

Japan's airlines have also been impacted by the conflict, with Japan Airlines Co. saying in a statement that it canceled six flights between the Haneda Airport and Doha through March 3. About 1,000 passengers are expected to be affected.

Dubai's nightmare scenario unfolded Saturday: Defense systems repelling Iranian missiles and drones over its famous skyscrapers, random explosions and plumes of black smoke rising out of the city-state's most celebrated neighborhood.

Local authorities said four people were injured in a fire at Palm Jumeirah, the man-made island that's famous for its luxury hotels, resorts and attractions. A high-end hotel there was hit by parts of a missile that was either intercepted or got knocked off its trajectory.

Dubai's main airport, the world's busiest aviation hub, was partially damaged by a suspected aerial strike on one of its terminal buildings. The airport operator "sustained minor damage" and said it was quickly contained.

Iran launched an unprecedented wave of airstrikes in the region targeting US bases and fracturing the emirate's long-held image of a haven in a tough neighborhood. Dubai has prided itself with its unshakable security and safety. Many still leave their cars and homes unlocked.

But social media is full of videos of interceptors and objects flying in the sky, an unthinkable scene in the emirate. A restaurant in the Dubai International Financial Center, the Middle East's main financial hub, unexpectedly asked customers to pay and leave so they could close early.

Panic-buying in some supermarkets prompted Emirati authorities to issue a statement and reassure residents that there is ample supply of food. Strategic reserves of essential commodities are "robust, comprehensive and diversified," they said, asking people to refrain from stockpiling.

Missiles struck a service center at a US base and residential buildings in Bahrain, and a drone hit Kuwait's airport, injuring some staff at a passenger terminal. The American base there was also hit, lightly injuringBloomberg Terminal three members of the Kuwaiti military. Qatar intercepted several waves of airstrikes and suspended flights, as did many others.

The UAE partially closed its airspace and suspended flights in Dubai as it intercepted Iranian rockets. Debris fell in Dubai and Abu Dhabi, according to the state-run news agency. One person was killed after missiles were intercepted in an Abu Dhabi area, the agency reported.

The Islamic world, including the UAE, is observing the holy month of Ramadan, when Muslims fast from sunrise to sundown. Many cafes and restaurants remain open late into the night and offer late-night dining options and services.

Management in some Dubai buildings are asking residents to take shelter in basements, and fitness centers have messaged their clients to say they're temporarily closing.