The world's largest oil-tanker operator cautioned that resuming traffic through the Strait of Hormuz will require weeks, even after an agreement is signed. Clearing accumulated vessel backlogs, inspecting shipping lanes, resolving insurance issues, and preparing crews will delay any immediate impact on energy markets and fuel prices, the company said.
The world's largest oil-tanker operator warned Tuesday morning that clearing the Strait of Hormuz for normal shipping traffic will take weeks even after the expected signing of the Islamabad Agreement on Friday, delaying any immediate relief for global energy markets.
The company detailed four hurdles: clearing the backlog of vessels that have accumulated during the months-long closure; safety inspections of shipping lanes that may contain naval mines; resolving insurance coverage issues for transiting ships; and crew readiness after extended delays. Because of these factors, the company stated that even if an agreement is signed, the impact on fuel prices will not be immediate.
The Strait of Hormuz, through which roughly one-fifth of the world's oil and liquefied natural gas (LNG) supply ordinarily passes, has been effectively closed since late February. The warning comes as U.S. and Iranian officials prepare to sign the agreement on Friday, June 19, which is expected to formally reopen the strait — but the shipping industry's assessment suggests full operational recovery will lag behind the diplomatic timeline. All relation in zioneer_context is BACKGROUND; no SAME-THREAD continuity is asserted.
2 developments
- StrongTrump says tankers are sailing out of Strait of Hormuz, contradicting Iranian reports
- DevelopingUS military warns stranded ships not to cross Strait of Hormuz without clearance
- StrongUS official expects significant increase in Strait of Hormuz traffic within two weeks
- DevelopingIranian forces block tanker in Strait of Hormuz, Fars reports
Source and signal
- Internal intake