Iran: Rouhani announces opening of oil export terminal bypassing Hormuz Strait

President Hassan Rouhani announced Thursday that Iran is exporting crude oil has opened its first oil export terminal outside the strategic Strait of Hormuz, a chokepoint patrolled by warships of its arch-foe the United States.

Iranian state media described the move as an indication that sanctions imposed by the US were being defeated.

The new terminal is located near Jask port on the Gulf of Oman, allowing ships headed into the Arabian Sea and beyond to avoid the narrow strait. The shortcut also reduces transportation and insurance expenses for oil tankers.

Iran's main oil export terminal is located at the port of Kharg inside the Strait of Hormuz, a waterway less than 40 kilometres (25 miles) across at its narrowest point.

Washington placed sanctions on Tehran after former US President Donald Trump pulled his country out of a nuclear deal between Iran and world powers.

The project, which began in 2019 and will cost some $2 billion in total, helps Iran lessen its dependency on its main oil export terminal on the Persian Gulf island of Kharg.

The facility currently allows the pumping of some 30,000 barrels of crude into tankers per hour, via a floating anchored offshore jetty, or single point mooring. It is located some seven kilometers (4.7 miles) off the coast.

Iran has built a 1,000 kilometre (600 mile) pipeline to carry its crude to the new terminal in the southeast from Goreh in Bushehr province.

(With inputs from agencies)