Shipping companies may avoid passing through the Strait of Hormuz even after the U.S. and Iran reached a deal that is expected to reopen the passage.
Companies Need Proof That Agreement Is Working
According to a report by the Financial Times on Tuesday, Jotaro Tamura, who is the head of Mitsui OSK Lines, a Japanese shipping company that is also the world’s largest tanker owner, said that operators would want proof that the agreement is working on the water before they send vessels through the route.
Tamura said that a “simple agreement” wouldn’t suffice to reassure operators of sending ships through the route, which is responsible for over a fifth of the world’s crude oil supply, adding that earlier attempts to reopen the route had not worked out, the report said.
“I think it’s reasonable to assume that it may take at least a couple of weeks,” for the traffic to return to normal, he said in the report.
Tamura had made his comments before Trump announced the deal, but the company later said his view remained the same, the report said.
No Fees For Iran
Philip Belcher, who is a marine director at Intertanko, urged restraint in the report, while adding that some vessels were attempting departures under cover of darkness and with their GPS switched off.
Approximately 135 ships passed through the route before the conflict, the report said. Tamura also said he opposes Iran’s push to impose a transit fee, arguing it would violate international rules tied to freedom of navigation.
Mitsui OSK Lines managed to move four vessels out of the Gulf before the reopening deal, and Tamura said the company did not pay fees to Iran. He said the company still has at least seven ships waiting to pass through the strait.
JD Vance Says Iran Could Access $300 Billion Fund
Earlier, Vice President JD Vance had said that Iran could be allowed access to a $300 billion reconstruction fund if it reached an agreement with Washington, but its access was contingent on Tehran’s compliance with the agreement.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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