Shipowners tread carefully as US-Iran deal aims to reopen Strait of Hormuz
By Aboki Forex —
A US-Iran deal to reopen the Strait of Hormuz within days has been met with caution by shipowners and traders. Almost all say they need more details before deciding if safe transits are possible. This comes after months of false starts.
The Strait of Hormuz is a vital route for global oil and gas. It has been at the centre of the conflict since the first strikes on Iran. The urgent need to resume traffic has been a key theme in months of on and off peace talks.
The disruption has shaken global energy trade. It has cut off some of the world's top producers and forced major players to use dark transits.
News of the long awaited agreement cheered oil futures in early trade on Monday. Brent crude fell almost 5%. But those moving crude and gas around the world still question what the reopening will mean in practice. US President Donald Trump has said it will come on Friday.
Anoop Singh, global head of shipping research at Oil Brokerage Ltd, said it is still early days. There is a lot of spitballing at this stage. Big shipowners are not changing their stance. They are staying put for now.
Major Japanese shipping companies were among the first to respond to the deal. They cautioned that safe navigation is only possible after details are finalised. Mitsui OSK Lines said close coordination with governments and insurers is needed.