Shipping in the Strait of Hormuz slow to recover: market awaits safety signals

There is almost no ship movement in the Strait of Hormuz even six hours after the announcement of a ceasefire in the war between the US and Israel against Iran. Ships and insurers need positive signals before resuming traffic through this vital waterway, reports CNN, citing open shipping data and expert opinions.

“A ceasefire is the first necessary step, but it does not mean that commercial shipping will immediately normalize on international shipping routes in the strait,” former US Navy officer and shipping expert Charlie Brown told the American broadcaster.

According to him, “shipowners are still awaiting official guidance through maritime security service channels, from flag states (the countries where the ship is registered - Ed.), and, most importantly, from naval risk insurers before sending ships back into the strait.”

If the first ships to venture through the Strait of Hormuz successfully complete their transit, it will be a “real signal,” and others will follow, Brown said. Since the start of the war, Iran has attacked at least 19 ships near the Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman. The blockade of this waterway for over six weeks has paralyzed oil supplies and crashed global markets.

The two-week ceasefire agreement between the US, Israel, and Iran includes a provision allowing Iran and Oman to collect transit fees from ships passing through the Strait of Hormuz, according to the Associated Press. Donald Trump announced on April 7 that the US would suspend “bombings and attacks on Iran” for two weeks after consultations with Pakistan, provided that unimpeded passage of ships through the Strait of Hormuz is ensured for the same period.

Source: DW