Vessels at the Strait of Hormuz, as seen from Musandam, Oman, Monday. Reuters-Yonhap
TOKYO/COPENHAGEN — Shippers in Asia and Europe said confidence in resuming transit through the Strait of Hormuz could take weeks to rebuild and navigation will only restart once safety is assured, after the U.S. and Iran agreed a framework deal to reopen the waterway. U.S. and Iranian officials are expected to sign a memorandum of understanding to end their war and reopen the strait on Friday.
Global oil prices fell about 5 percent on Monday in response. President Donald Trump said in a Truth Social post that ships loaded with oil are starting to move out of the strait, "going along the Southern 'Highway,' which is totally safe, secure, and pristine".
There were no significant tanker crossings visible in vessel-tracking data on Monday, aside from one LNG carrier, however ships have been quietly moving barrels along Oman's coast for weeks, sailing "dark" with U.S. navy support.
The data, which captures only vessels actively transmitting their positions, showed dozens of tankers clustered on both sides of the Strait of Hormuz.
Shippers welcomed news of the deal, but are waiting for more details, including on clearing mines.
"AIS data shows no wave of ships heading towards Hormuz this morning," Jyske Bank analyst Haider Anjum said in a client note.
"The shipping companies probably want to wait until it is clear that the agreement holds, as we have already had Hormuz 'open' for a very short time twice before," he added.
War largely stopped shipping through the strait
The Iran war that began on February 28 with U.S.-Israeli strikes has largely stopped shipping through the transit route for around a fifth of the world's oil and liquefied natural gas supply, along with products such as aluminium and urea.
Source: Korea Times News
