The Gulf Burns
FROM THE SOUTHERN AIR IMPORT // INTERNATIONAL AFFAIRS · NOVEMBER 1986
THE GULF BURNS
Iraq Extends Its Air Campaign Against Iran's Oil Exports As The Tanker War Intensifies
November 26, 1986 — International Desk
Iraqi dead along a road on the southern front. The war is now in its seventh year.
The war between Iran and Iraq has entered another dangerous phase, with Iraqi aircraft extending their attacks against Iranian oil facilities and commercial shipping deep into the Persian Gulf.
The latest operations demonstrate the increasing importance of economic warfare in the six-year conflict. Rather than relying exclusively upon territorial gains along the land frontier, both governments are seeking to damage the economic foundations supporting their opponent's military effort.
For Iran, petroleum exports remain essential to financing the war. The country's ability to maintain oil shipments is therefore a strategic concern of considerable importance.
Iraq has increasingly directed its air operations toward the vessels, terminals and offshore facilities supporting Iranian exports.
TANKERS UNDER FIRE
Reports published during November indicate a renewed campaign against shipping serving Iranian oil installations.
On November 9, Iraqi aircraft attacked two shuttle tankers operating along the route between Kharg Island and the southern Gulf.
Further reporting on November 10 identified damage to the Cypriot-registered Angel and the Iranian tanker Khark.
The attacks illustrate the vulnerability of the shuttle system employed by Iran to move crude oil toward export terminals closer to the mouth of the Gulf.
Rather than depending entirely upon a single loading facility, Iranian authorities have developed alternative arrangements involving offshore terminals and ship-to-ship transfers.
These operations provide a degree of flexibility, but they also create additional demands upon shipping capacity, maritime insurance and tanker availability.
For international shipping companies, the implications are increasingly serious. Vessels operating near Iranian export routes must now account for the possibility of air attack, fire and damage to loading equipment.
LARAK ISLAND: A NEW TARGET
The lower Gulf and the Strait of Hormuz, where Larak lies off the Iranian coast. CIA map, 1980.
The most significant development occurred on November 25, when Iraqi aircraft attacked Iran's makeshift oil-shipping installation on Larak Island near the entrance to the Strait of Hormuz.
The raid marked a considerable extension of the Iraqi air campaign.
Three supertankers were reported burning following the attack, while oil-loading facilities and associated installations came under further threat.
The location of Larak is particularly important. Its position near the entrance to the Persian Gulf makes it a valuable component of Iran's efforts to maintain oil exports despite earlier attacks on facilities farther north.
The attack also demonstrates the considerable range of Iraqi strike aircraft.
According to contemporary reporting, the aircraft involved flew approximately 1,560 miles on the round trip to reach the target. Such a mission places considerable demands upon navigation, fuel planning and operational coordination.
The use of aerial refueling was considered a possibility by regional analysts.
THE WAR REACHES BEYOND THE FRONT
The campaign has also increased the danger to neighboring states.
On November 25, missiles struck offshore oil installations in the United Arab Emirates, killing five workers and injuring others. Iran attributed the attack to Iraq, although the aircraft involved were not independently identified.
The incident demonstrates how easily the economic warfare between the two belligerents can threaten neutral commercial interests.
The danger is no longer confined to the principal shipping routes or the immediate coastline of either combatant.
Meanwhile, Iran has continued its missile attacks against Iraqi cities. On November 26, another Iranian missile struck Baghdad, damaging buildings and causing concern among residents.
The exchange illustrates the continuing escalation of attacks against economic and civilian centers.
COMMERCIAL CONSEQUENCES
The Persian Gulf remains one of the world's most important petroleum transportation corridors. Continued attacks threaten not only the immediate interests of Iran and Iraq but also the commercial operations of shipping companies, insurers and oil purchasers.
Marine insurance costs, vessel availability and the willingness of foreign crews to operate in the region are all affected by the increasing danger.
For logistics firms, the conflict presents a difficult operating environment. Cargo movements, vessel schedules and insurance arrangements must be reconsidered whenever the security situation changes.
The United Nations has already expressed concern over the increasing number of attacks against merchant vessels.
In its report of November 26, the Secretary-General noted that 97 attacks on merchant vessels had been reported during 1986 by November 25, compared with 61 during the entirety of 1985.
The figures demonstrate the scale of the growing threat to international shipping.
A DANGEROUS CALCULATION
Neither government appears prepared to abandon the economic warfare that has developed alongside the land campaign.
Iraq seeks to reduce Iran's ability to finance its military operations, while Iran continues to demonstrate that Iraqi cities and commercial interests are also vulnerable.
The danger is that attacks intended to weaken an opponent may instead draw additional regional powers into the conflict.
The Persian Gulf is not simply a battlefield between two neighboring states. It is an international commercial artery upon which the energy markets of numerous countries depend.
THE IMPORT VERDICT: The November attacks demonstrate that the Persian Gulf must now be considered a high-risk commercial operating environment. Shipping companies, insurers and international suppliers should monitor developments around Kharg, Larak and the Strait of Hormuz with particular attention. The cost of moving cargo through the region may soon become as important as the cost of the cargo itself.
SOURCES AND CONTEMPORARY REFERENCE MATERIAL: Los Angeles Times, November 10 and November 15, 1986; Washington Post, November 25, 1986; Christian Science Monitor, November 26, 1986; United Nations reporting on merchant-vessel attacks, November 26, 1986.
FROM THE MANIFEST
LARAK RAID: NOV. 25, 1986 · 97 SHIP ATTACKS IN 1986 · SOUTHERN AIR IMPORT · NOVEMBER 1986 · DEPT. 9
SOUTHERN AIR TRADE // THE MANIFEST