Shipping industry seeks safety assurances for Strait of Hormuz reopening
7 reported4 unconfirmed
A shipping industry executive stated that the sector needs credible assurances from both the U.S. and Iran that the Strait of Hormuz is safe to navigate before traffic can resume. The U.S. and Iran are set to sign a memorandum of understanding on Friday, with President Donald Trump expecting the strait to be completely opened by then. However, Jakob Larsen, chief safety and security officer at BIMCO, the global shipping association, said that is unlikely because both sides are still enforcing blockades and the mine threat has not been neutralized. Larsen noted that shipping companies did not pay fees to Iran prior to the war, as the strait is an international waterway with freedom of navigation under international law. He expressed concern that the international rules-based order is under pressure and that Iran has demonstrated the ability to virtually close the strait, leading some oil-producing countries to consider alternative routes such as pipelines.
What’s reported
The U.S. and Iran are set to sign a memorandum of understanding on Friday.
President Donald Trump stated that ships are starting to go out and the strait will be completely opened on Friday.
Jakob Larsen said the situation is unchanged from before the deal was announced, with both sides still enforcing blockades.
Larsen said it could take weeks or months to neutralize the mine threat in the strait.
Shipping companies did not pay fees to Iran prior to the war; the strait is an international waterway with freedom of navigation.
Larsen said the shipping industry is concerned that Iran has demonstrated the ability to virtually close the strait.
Some oil-producing countries are looking at alternative routes, such as pipelines.
Open questions
Whether Iran actually laid mines in the Strait of Hormuz during the war.
How long it will take to fully neutralize any mine threat.
Whether shipping companies will ever rely on the Strait of Hormuz in the same way again.
Whether alternative routes like pipelines will materialize.
Key figures
Jakob Larsen, chief safety and security officer at BIMCO, the global shipping association.
President Donald Trump.
Sources: NPR
